- One scheme for all – including Reservists.
- A Career Average scheme (rather than final salary).
- No personal contributions.
- A pension accrual rate of 1/47th for all.
- Benefits earned under the new scheme while serving will be increased (‘revalued’) annually by an average earnings index.
- The Deferred Pension age (known as the Preserved Pension age in the current schemes) will be linked to the State Pension Age.
- An Early Departure Payment (EDP), consisting of a lump sum and income stream, with further work being undertaken to investigate the potential for allowing greater flexibility in how the EDP is taken.
- Normal Pension Age of 60, though pension can be taken earlier (from 55), actuarially reduced from the Deferred Pension Age, as it will be paid for longer.
- No automatic pension lump sum, but with the option of generating a lump sum by commuting (reducing), the pension income.
- Pensions in payment and Deferred Pensions to increase in line with the Consumer Prices Index (CPI).
- Dependants’ benefits, ill-health pensions and death-in-service benefits in line with AFPS 05 provisions.
- Abolition of abatement if an individual returns to the Services after retirement.
- A break of five years or less will be treated as continuous service for indexation.
- Annual pension forecast statements.
- A Government commitment that there should be no further changes to public service pensions for the next 25 years.
MOD (Ministry of Defence) (2013) A New Armed Forces Pension Scheme: Outline Scheme Design. London: MOD.