top of page

Pension Matters


Armed Forces Pension Increase


It is expected that the pension increase for 2024/25 could be in the region of 7.0 to 8.5%. The CPI figure for 2024-25 will not be confirmed until Autumn 2023.



Your pension increased by 10.1% effective from 10th April 2023

From April 2022 - 3.1%

From April 2021 - 0.5%

From April 2020 - 1.7%

From April 2019 - 2.4%

From April 2018 - 3.0%

From April 2017 - 1.0%


The McCloud Judgement

Page updated on 10 June 2023

The latest AFPS Quarterly Review has stated that a calculator will be released the August 2023to provide active members with an illustration of their pension entitlement.


Due to the complexities of the remedy, HM Treasury and Public Sector schemes are still working through outstanding policy and amending scheme legislation. Public Sector Pension Schemes require to complete this work, to implement the DCU, by 1 October 2023. Organisations are not yet in a position to be able to provide “McCloud choice comparative figures”.

Eligible members who have already left the Armed Forces with a pension in payment (following normal or medical retirement), eligible dependants with a pension in payment in cases where a member has very sadly died, and members who retire from the military prior to being able to make their election for the remedy period (whilst the system works to catch up) will be contacted by Veterans UK after the implementation date (i.e. after 1 October 2023) and be provided with details of their election choice. 

Eligible members who exit the Armed Forces before 1 October 2023 (and thereafter until the system catches up) should plan to leave on their current pension terms. 


The latest AFPS Quarterly Review has stated that the public consultation has been carried out. However the MOD requires further policy clarification and permissions from HMT before the scheme can proceed. Looks likely to start sometime in 2023.

Please note that for most people there will be no change and what change there will be is likely to be quite modest.

Click here to read the update from the Forces Pension Society.


The latest AFPS Quarterly Review has stated that things are progressing and that the IT system is being updated. Once the automated processes are updated, Service Personnel will receive a Benefits Information Statement to reflect the move back to legacy pension schemes. Also, a pension calculator will be made available soon so that you can see how the scheme may affect your pension benefits.

More details can be found here.


Back in 2015, the Coalition Government, in negotiation with trade unions and staff associations, agreed to exclude those closest to their retirement age from proposed pension reforms, as they had least time to prepare. This difference in treatment for certain members was later found to unlawfully discriminate, in particular against younger members. Since the Court’s judgment, the government has considered how to address this problem and has published a consultation document entitled;

Public service pension schemes:

Changes to the transitional arrangements to the 2015 schemes

You can read the full consultation document here.

The two types of benefits mentioned are Reformed Schemes and Legacy Schemes. Most of us will be on the legacy pension scheme.

In simple terms, in order for the government to resolve this issue, they will give every pensioner a choice of benefits for those who may have unknowingly lost out financially and it will be up to the pensioner to decide which of two options is better going forward. The proposals will apply to all members who were in service on or before 31 March 2012 and on or after 1 April 2015. This is irrespective of whether they have submitted a legal claim or not, or whether they are currently an active, deferred or pensioner member.

So, there is no need to panic and no need to worry about it at all. Everything will be explained in clearer language as and when notifications are sent out to individuals. Given the numbers involved, I expect this will take some time. There will also be plenty of FREE advice from HM Treasury and other reputable organisations. There is no roadmap in the document so it is difficult to say how long we have to make up our minds but it looks like the 1st April 2022 is the chop date – the implementation date. The diagram below  shows you how the process will work.















As always, I would issue a warning for all to be aware of scammers or people/organisations who will offer to sort it out for you in return for a small fee. Please seek proper advice.

Either that or you can ask the audience, phone a friend or do 50:50! 

The AFPS Quarterly Digest (May 2021) has stated that a dedicated edition will be sent out later this year containing more details.

bottom of page