THIS PAGE CONTAINS IMPORTANT INFORMATION WHICH SHOULD BE READ BY EVERYONE BEFORE CHECKING THE TICK BOX AT THE FOOT OF THE PAGE AND USING THE ARMED FORCES REDUNDANCY CALCULATOR (AFRC)
TO PRODUCE YOUR COMPENSATION AND PENSION BENEFITS FORECAST - IT IS RECOMMENDED THAT YOU SEEK UNIT HR ASSISTANCE IN CONFIRMING THAT YOUR FORECAST IS BASED ON ACCURATE INFORMATION.
Personnel Leaving on Redundancy with an exit date beyond 01 Apr 15.
The note only applies to users who input an anticipated date of redundancy which is beyond 01 Apr 15.
If a future Tranche of Redundancy is announced then Non-Applicants, and some Applicants may leave the Armed Forces after 1 Apr 15 and will, if eligible, have a very short period of Service under the new AFPS 15 which will be effective from 01 Apr 15.
The pension element of this Redundancy Calculator has not been adjusted to take into account this very short period of Service under AFPS 15 and will instead produce a forecast based on the individual’s existing pension scheme (AFPS 05 and AFPS 75).
Personnel who input an anticipated date of redundancy beyond Apr 15 should be aware of this.
If selected for compulsory redundancy, individuals will receive redundancy and pension statements from Veterans UK and these forecasts will take account of AFPS15 where appropriate.
Users who input an anticipated date of redundancy which is before 01 Apr 15 are not affected by this note.
NEW VERSION OF THE REDUNDANCY CALCUALTOR (V6.4)
Armed Forces Redundancy Scheme 2006(AFRS 06)
- An error has been discovered with the Redundancy Calculator that only affects
a very small number of Officers. This error only affects officers serving on AFPS 75,
who enlisted at age of 19 or 20 and had it not been for redundancy would have completed 16 years
service from age 21 but less than 18 years service from enlistment.
The V4.0 of the redundancy calculator was giving underestimated redundancy Special Capital Payments
for officers in this category. All other aspects of the calculation are correct.
Officers who enlisted on or after age 21 are not affected. A correction has been implemented
in version 5.0, and those potentially affected are strongly advised to re-run their redundancy
Armed Forces Redundancy Scheme 2010(AFRS 10)
- This scheme is for the members of the Armed Forces Pension Scheme 2005 (AFPS 05).
- Compensation Lump Sum (CLS) - A tax-free lump sum that is only available to AFRS06
participants and is paid in addition to AFPS 05 benefits.
Final Pensionable Salary
- This scheme is for the members of the Armed Forces Pension Scheme 1975 (AFPS 75).
- Special Capital Payment (SCP) - A tax-free lump sum that is only available to AFRS10
participants and is paid in addition to AFPS 75 benefits.
This is an Veterans UK generic term which can be applied to either Final Relevant Earnings
(AFRS 06) or Basic Pay Rate (AFRS 10).
Higher Rank and Higher Paid Salary
These are Veterans UK generic terms that relate to AFRS10 members - Please ensure you read
the relevant Introduction and Help Station Notes.
Terms & Conditions
The Armed Forces Redundancy Calculator (AFRC) is for guidance purposes only.
It is not intended to provide you with financial advice. If you require financial
advice, you should contact an independent financial adviser. Your unit administration
staff has a list of Services Insurance and Investment Advisory Panel (SIIAP) approved
independent financial advisers, although you are free to use any independent financial
adviser that you wish.
The AFRC provides you with a forecast under AFRS 06 and AFRS 10, along with the
pension benefits you could expect to receive under AFPS 05 or AFPS 75. The AFRC
does not show dependents benefits, ill-health benefits, transfers in, pension sharing figures or Additional Voluntary Contributions.
In addition, the AFRC cannot give a forecast projection when qualifying service is different to reckonable service.
The calculator will initially ask you to confirm which redundancy scheme you are
in. The Pension forecasts that the calculator provides are based on extant Pay rate
codes effective from 1 Apr 2014 (for AFPS 05 members) and pension codes effective
from 1 Apr 2014 (for AFPS 75 members).
Redundancy Reckonable Service for AFRS 10
Statutory Instrument No 832 The Armed Forces (Redundancy, Resettlement & Gratuity Earnings Scheme) (No 2) Order 2010 defines
"redundancy reckonable service" as any period of service referred to in paragraphs (2) and (3) of the Order, "whether current or previous aggregated service" since age 18.
This affects the way in which the SCP element is calculated as it excludes previous service which has not been aggregated with
current service. Please note any period served on gratuity earning terms where the gratuity lump sum has not been forgone or repaid does not
count as 'redundancy reckonable service'and hence is not included in the calculation of the SCP element. To obtain your
forecast for SCP and Pension benefits you should enter your current period of service only if you have not elected to aggregate
them. However, if you have written into Veterans UK, address below, to aggregate your service, you should enter your previous service
together with the relevant break in service to obtain your combined forecast.
If you have had any break in service prior to 6 April 2006 and are entitled to a preserved pension,
your forecast payable at age 60 will be inaccurate and you will need to contact your Service Redundancy Cell for assistance.
Please refer to JSP 764 Part 5 Chapter 3, which gives guidance on how to calculate your SCP.
Aggregation of Previous Armed Forces Preserved Pension Awards
If you have rejoined the Armed Forces and have a preserved pension award
you are entitled to aggregate your most recent period of previous service with your current service.
However, you must apply to do so in writing, to Ministry of Defence, Veterans UK, Pensions Division (Aggregation), Mail Point 480, Kentigern House, 65 Brown Street, Glasgow,
G2 8EX before terminating your service. (page 21 of the Service Leavers Guide refers)
Aggregation of previous AFPS 75 service with a current period of AFPS 75 service
If you are a member of AFPS75, have insufficient service on your current engagement
and have not opted to aggregate your previous preserved pension award with your current service you may not qualify for immediately
payable pension benefits. You will only be entitled to a second preserved pension
award. This will also affect your SCP - See note on Redundancy Reckonable Service for AFRS10
Aggregation of previous AFPS 05 service with a current period of AFPS 05 service
If you are a member of AFPS 05 and are aged 55 or over on the date you leave service,
and have not opted to aggregate your previous AFPS 05 preserved pension with your current service, your immediate pension at
age 55 or over will be based on your current period of service only and your earlier
deferred pension will be paid to you as a preserved pension at age 65. However, if you have opted to aggregate your previous AFPS 05 preserved pension with your current service,
your immediate pension payable at age 55 or over will be based on your current period of service and your earlier deferred pension.
If you leave service before the age of 55 with insufficient 'relevant service' for an Early Departure Payment, your
previous preserved pension and current awards will be deferred until you are age 65.
Aggregation of previous AFPS 75 service with current period of AFPS 05 service
If you are a member of AFPS 05 and are aged 55 or over on the date you leave service, and have not opted to aggregate your previous
AFPS 75 preserved pension with your current service, your immediate pension at age 55 or over will be based on your current period of service only
and your earlier deferred pension will be paid to you as a preserved pension at age 65.
If you are a member of AFPS 05 and are aged 55 or over on the date you leave service, and have opted to aggregate your previous AFPS 75 preserved pension with
your current service, your immediate pension at age 55 or over will be based on your current period of service and your earlier deferred pension and paid at age 55.
AFPS 05 members qualify for an immediate Early Departure Payment if they have served 18 years or more relevant service and aged 40 or over.
AFPS 05 members who have rejoined the Armed Forces with a period of previous AFPS 75 preserved service will be able to aggregate their last period
of AFPS 75 service with their AFPS 05 service for pension purposes.
This period of aggregated service will also count as “relevant service” towards qualifying for an Early Departure Payment.
If you leave service before the age of 55 with insufficient 'relevant service' for an Early Departure Payment, your previous AFPS75 preserved pension and current award
will be deferred until you are age 65.
See "Relevant Service for AFRS 06" for further information.
Length of Service
The various calculation methods, used in the redundancy calculations refer to either completed or uncompleted service (JSP 764 Part 5 refers).
Completed Service/Redundancy Reckonable Service see:
Uncompleted Service See:
- JSP 764 Part 5 0205bi (AFRS 06(AFPS05))
- JSP 764 Part 5 0305bi (AFRS 10 (AFPS75))
Completed Service/Redundancy Reckonable Service
- JSP 764 part 5 0205bii (AFRS 06(AFPS05))
- JSP 764 Part 5 0305bii (AFRS 10 (AFPS75))
Does not include:
RELEVANT SERVICE FOR AFRS 06
- Unpaid Additional Maternity Leave (AML)
- Unpaid Additional Adoption Leave
- Unpaid Additional Paternity Leave
- Reckonable service for pension purposes transferred from another employer's pension
scheme, private pension plan or purchased by way of added years
- Reckonable service that is not aggregated with current service for pension purposes (AFRS 10 only)
- Any period served on gratuity earning terms where the gratuity has been forgone or has not been repaid (AFRS 10 only)
- Previous service under AFPS 75 which the individual has opted to aggregate for pension purposes on rejoining the Armed Forces (AFRS 06 only).
Only service which determines a person's entitlement to an Early Departure Payment (EDP) is counted, as
"relevant service" as defined in Statutory Instrument No 437 The Armed Forces EDP Scheme Order 2005 as follows:
Note: with effect from 16 December 2013 AFPS 05 members who have rejoined the Armed Forces with previous AFPS 75 service will now have the option to be able to aggregate their last period
of AFPS 75 preserved service with their current period of AFPS 05 service, so that both periods of service are taken into account when calculating the total number of years of “relevant service”.
- all paid service on or after 6 April 2005 (includes previous service on or after 6 April 2005);
- all qualifying service transferred from AFPS 75 to AFPS 05 under the OTT; in the case of an opt-out, the
period of qualifying service that he would have been entitled to count under the Offer To Transfer (OTT) had he
been a member of AFPS 75 less service before age 21 (officers) or age 18 (ORs);
- all qualifying service transferred from Gurkha Pension Scheme (GPS) to AFPS 05 under the Gurkha OTT
- any period on secondment to NATO/UK etc. where the member has the option to increase his reckonable service by the purchase of added years equal to the length of his secondment.
- the last period of preserved service under AFPS 75 that has been aggregated for pension purposes with their current period of service.
Under AFPS 05 entitlement to a Resettlement Grant is based on 12 years "relevant service" as defined above.
Under AFPS 75 entitlement to a Resettlement Grant is based on relevant years of reckonable service. For an officer this is 9 years after reaching the age of 21.
For Other Ranks, this is 12 years after reaching the age of 18.
Medical and Dental Officers under AFRS 06
The AFRC will not provide Early Departure Payment (EDP) details for Medical and Dental Officers (MODO) who have at least 18 years relevant service and have reached age 40 or over.
It will however, provide a forecast for a compensation lump sum and pension benefits at age 65.
An individual on bonus conditions is normally excluded from EDP arrangements, however under redundancy access to the EDP Scheme is permitted providing you meet
the qualifying criteria of at least 18 years relevant service and be at least aged 40. In such cases, the bonus payment will normally be recovered from the EDP lump sum
where the required return of service has not been completed. For more information on the MODO bonus scheme and redundancy see JSP 764 Part 4 Chapter 7.
If you have any queries or require a full redundancy forecast please contact your Service Redundancy Cell who will be able to meet your request.
Acting Rank (AFRS 10 Only)
You will be required to enter additional Acting Rank information during the later
calculation processes and must read the Acting Rank Help Station Notes fully in
order to ensure that an accurate SCP calculation is made.
A person cannot be considered for redundancy compensation if he leaves the service
on Invaliding terms. JSP 764 Part Ch 2 0203 (e) Ch 3 0303 d) refers.
Opted Out AFPS 75 or AFPS 05
If you have opted out of AFPS 75 or 05 in favour of your own private pension
arrangements you will need to contact your Unit HR for advice on compensation benefits.
Personnel who have less than 2 years completed service
If you have less than 2 years completed service, the AFRC will not provide you with
a Redundancy Forecast. However; it is relatively easy to work out your redundancy
CLS using the following formula:
Identify your completed service and convert the days to a decimal (divide them by
365). Identify your FRE and divide it by 1/8th and multiply the two results together
1yr 250 days divide the days by 365 x 14200 pounds (FRE) divided
1yr + (250/365) x (£14200.00/8)
1.6849 x £1 775.00
If you are unsure of any of the details or steps required to make this calculation
please contact your Unit HR who will give you further advice.
Members of the Gurkha Pension Scheme will not be able to use this calculator to
obtain a forecast.
Gurkhas who transferred to the AFPS 05 and have service before 1 October 93 (ORs)
and 1 July 1997 (Officers) will not receive an accurate pension forecast from
the AFRC. However the CLS will calculate correctly as long as your completed
service is entered accurately and correctly.
Gurkhas who transferred to AFPS 75 and have service before 1 October 93 (ORs) and 1 July 1997 (Officers) will need to contact their Unit HR.
AFRS10 - The AFRC does forecast Life Commutation.
Although every effort has been made to ensure that the information provided is as
accurate as possible, no representation or warranty, express or implied, is given
as to its accuracy and the MOD does not accept any liability for error or omission.
The MOD shall not be liable for any loss or damage arising from the use of, or inability
to use, the Redundancy Calculator, or any material contained in it, or from any
action or decision taken as a result of using the Redundancy Calculator or any such
By checking the 'accept' box below you have agreed that you have read and understood
the preceding instructions and are aware of all
the relevant documentation relating
to your AFPS and AFRS.
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2012 Redundancy Calculator V6.4