Annex F
COMPARISON BETWEEN CURRENT ARMED FORCES ATTRIBUTABLE
BENEFITS AND PROPOSED JOINT COMPENSATION SCHEME
Attached examples set out a comparison of the
benefits available on death or injury in the armed forces under:
a) Existing benefits—paid through a
combination of the attributable benefits of the Armed Forces Pension
Scheme and the War Pension Scheme.
b) Proposed benefits—as set out under
the Joint Compensation Review Consultation document dated March
2001.
The examples chosen are intended to illustrate
the main features of the Review proposals. They cannot cover every
aspect of the proposals.
The examples provided are:
| 1.Death in service |
a)no children, lower pay spine level
b)no children, upper pay spine level
c)two children
|
| 2.Injury claim emerging after retirement |
Tariff 8—eg significant mental condition |
| 3.Injury leading to discharge from services
| Tariff 13—eg fracture long bone in lower limb
|
| 4.Injury not leading to discharge | Tariff 13—eg internal derangement of the knee
|
| 5.Injury claim emerging after retirement |
Does not satisfy new scheme criteria |
Note that where, under the "proposed arrangements",
benefits are payable from the Armed Forces Pension Scheme (AFPS)
the benefits quoted are based on our proposals for the new AFPS.
Some members of the Armed Forces can be expected not to transfer
to the new pension scheme and the calculations affecting them
will be different. Transitional arrangements will be developed
to cover such cases.
EXAMPLE 1a
ATTRIBUTABLE DEATH
IN SERVICE
Member—Captain, 6 years service, age 30 at death, pay
level 3, salary £30,372
Spouse —Yes —Age under 40
Children—No
| | Existing
Arrangements
| Proposed
Arrangements
|
| Pension Scheme Benefit |
| P1) Lump sum benefit | £34,924
| £91,116 |
| P2) Pension to spouse pa | £2,854
| £4,013 |
| Attributable benefits/Compensation scheme
|
| A1) Lump sum award | £17,462
| Nil |
| A2) Bereavement allowance | Nil
| £20,000 |
| A3) Pension to spouse pa | £11,782
| £11,952 |
| War Pension |
| W1) Spouse's pension pa (Lower rate) | £1,135
| Nil |
| DWP Benefits |
D1) Bereavement payment (one-off)
D2) Widowed Parents Allowance pa
D3) Bereavement Allowance
| Nil
Nil
Nil |
£2,000
Nil
Nil |
| D4) State pension from age 65 pa (Category A)
| £3,770 | £3,770
|
| Lifetime value |
| Capitalised value of the above benefits (to nearest £1,000)
| £426,000 | £509,000
|
ATTRIBUTABLE DEATH
IN SERVICE
Member—Captain, six years service, age 30 at death,
pay level 7, salary £33,488
Spouse —Yes —Age under 40
Children—No
| | Existing
Arrangements
| Proposed
Arrangements
|
| Pension Scheme Benefit |
| P1) Lump sum benefit | £34,924
| £100,464 |
| P2) Pension to spouse pa | £2,854
| £4,425 |
| Attributable benefits/Compensation scheme
|
| A1) Lump sum award | £17,462
| Nil |
| A2) Bereavement allowance | Nil
| £20,000 |
| A3) Pension to spouse pa | £11,782
| £13,181 |
| War Pension |
| W1) Spouse's pension pa (Lower rate) | £1,135
| Nil |
| DWP Benefits |
D1) Bereavement payment (one-off)
D2) Widowed Parents Allowance pa
D3) Bereavement Allowance
| Nil
Nil
Nil |
£2,000
Nil
Nil |
| D4) State pension from age 65 pa (Category A)
| £3,770 | £3,770
|
| Lifetime value |
| Capitalised value of the above benefits (to nearest £1,000)
| £426,000 | £558,000
|
ATTRIBUTABLE DEATH
IN SERVICE
Member—Captain, six years service, age 30 at death,
pay level 3, salary £30,372
Spouse —Yes—Age under 40
Children—Yes—2
| | Existing
Arrangements
| Proposed
Arrangements
|
| Pension Scheme Benefit |
| P1) Lump sum benefit | £34,924
| £91,116 |
| P2) Pension to spouse pa | £2,854
| £4,013 |
| P3) Pension to children pa (each £1,427)
| £2,854 | £2,858
|
| Attributable benefits/Compensation scheme
|
| A1) Lump sum award | £17,462
| Nil |
| A2) Bereavement allowance | Nil
| £20,000 |
| A3) Pension to spouse pa | £11,782
| £11,952 |
| A4) Pension to children pa (each £2,063)
| £4,126 | £4,688
|
| War Pension |
| W1) Spouse's pension pa (Higher rate) | £4,720
| Nil |
W2) Pension to children pa 1st Child £746
2nd Child £832
| £1,578 | Nil
|
| DWP Benefits |
D1) Bereavement payment (one-off)
D2) Widowed Parents Allowance pa
D3) Bereavement Allowance
| Nil
Nil
Nil |
£2,000
£4,865
Nil
|
| D4) State pension from age 65 pa (Category A)
| £3,770 | £3,770
|
| D5) Pension to children pa | Nil
| Nil |
| Lifetime value |
| Capitalised value of the above benefits (to nearest £1,000)
| £524,000 | £610,000
|
ATTRIBUTABLE INJURY
CLAIM EMERGING
WITHIN THREE
YEARS OF
RETIREMENT
Member—Other Rank, age 53 at claim, retired at age
50, service at retirement 29 years, salary at retirement £25,298.15
Injury—significant mental condition—40 per cent
disability level under existing arrangement;
—Tariff level 8 in proposed scheme.
PENSION IN PAYMENT £10,021
| | Existing
Arrangements
| Proposed
Arrangements
|
| Triple A payment | —
| £25,000 |
| Guaranteed Income Stream pa | —
| £6,480 |
| War Pension pa | £2,492
| — |
| Capitalised value of the above benefits (to nearest £1,000)
| £39,000 | £127,000
|
ATTRIBUTABLE INJURY
LEADING TO
DISCHARGE
Member
Member—Staff Sergeant, 10 years service, age 30 at
injury, salary £25,298.15
Injury—fracture long bone: —20 per cent disability
level under existing arrangement;
—Tariff level 13 in proposed scheme.
Spouse—Yes—Age under 40
Children—No
| | Existing
Arrangements
| Proposed
Arrangements
|
| Pension Scheme Benefit |
| If Tier 1 ill
health benefits
paid
|
| P1) Lump sum benefit | £16,713
| £31,623 |
| P2) Pension to member pa | £5,571
| Nil |
| P3) Pension to spouse pa | £2,786
| Nil |
| Attributable benefits/Compensation scheme
|
| A1) Lump sum award | £2,446
| £5,000 |
| A2) Pension to member pa | Nil
| Nil |
| A3) Pension to spouse pa | £8,670
| £3,253 |
| War Pension |
| W1) Pension to member pa | £1,246
| Nil |
| Lifetime value |
| Capitalised value of the above benefits (to nearest £1,000)
| £155,000 | £45,000
|
ATTRIBUTABLE INJURY
REMAINS IN
SERVICE
Member—Other Rank, age 30 at injury, 10 years service,
normal discharge (ie not invalided out of Service)
Injury—internal derangement of the knee—6-14
per cent
initial disability level under existing arrangement -leading
to 20 per cent at later date;
-Tariff level 13 in proposed scheme.
| | Existing
Arrangements
| Proposed
Arrangements
|
| Triple A payment | —
| £5,000 |
| Guaranteed Income Stream pa | —
| Nil |
| War Gratuity | £707
| — |
| War Pension pa | £1,246
| — |
| Capitalised value of the above benefits (to nearest £1,000). If member subsequently qualifies
| £21,000 | £5,000
|
None of the above benefits, except the Triple A payment,
would become payable at the point of injury. The other benefits
may become payable on leaving the Services.
INJURY CLAIM
EMERGING WITHIN
5 YEARS OF
RETIREMENT
Member—Sergeant, age 50 at claim, retired at age 45,
service at retirement 22 years, pay level 6, salary at retirement
£25,298.15
Injury—develops cancer of the kidney (accepted as attributable
under existing arrangements not accepted under the proposed scheme)
Spouse—Yes
Children—Yes—2
| | Existing
Arrangements
| Proposed
Arrangements
|
| Pension Scheme Benefit |
| P1) Lump sum benefit | £24,078
| £23,853 |
| P2) Pension to member pa | £8,026
| £7,951 |
| P3) Pension to spouse pa | £4,013
| £3,975 |
| Attributable benefits/Compensation scheme
|
| A1) Lump sum award | Nil
| Nil |
| A2) Pension to member pa | Nil
| Nil |
| A3) Pension to spouse pa | Nil
| Nil |
| War Pension |
| W1) Pension to member pa | £6,251
| Nil |
| W2) Pension to children pa | £1,573
| Nil |
| W3) Spouse's pension pa | £4,719
| Nil |
| Lifetime value |
| Capitalised value of the above benefits (to nearest £1,000)
| £ 379,000 | £233,000
|
|
