Tier 1 medical discharge

[Vauxhall]

<article>

Did you know that If your total service qualifies you for an Early Departure Payment...

The post Tier 1 Medical Discharge appeared first on Forces Pension Society.
​

</article>
<aside style="margin-top: 0px;">The Forces Pension Society - Fighting for the forces and their Families</aside>

 

[busby1971]

Tier 1 medical discharge

Does this mean anything?



Sent from my iPad using Tapatalk

 

[Vauxhall]

Does this mean anything?




Sent from my iPad using Tapatalk

Yes. A Tier 1 discharge means that there is no invaliding pension. The pension is deferred until either age 65 (for AFPS 05 benefits) or State Pension Age (for AFPS 15 benefits). Tier 2 or 3 conditions do get an ill-health pension straight away from AFPS 05/15.

Many, many Servicemen and women are discharged with Tier 1 conditions and the post simply makes the point that, if the person being discharged with a Tier 1 condition has reached his or her EDP Point, they will get those benefits paid straight away instead of the much smaller Tier 1 lump sum.

 

[busby1971]

Cheers for the info, so they get no compensation then.


Sent from my iPhone using Tapatalk

 

[Vauxhall]

Cheers for the info, so they get no compensation then.


Sent from my iPhone using Tapatalk

There might be something from the Armed Forces Compensation Scheme if the condition is due to service but, again, if it is a condition which would be put into Tier 1, it will be just a lump sum. No ongoing income.

 

[busby1971]

Cheers again


Sent from my iPhone using Tapatalk

 

[dessp2]

Vauxhall

Vauxhall

If someone is booted out on Tier 1 Med discharge. Is the IP a tax liable income? It is because I have heard that some folk who are med discharged do not pay tax on their med pension. Thanks.

 

[Vauxhall]

If someone is booted out on Tier 1 Med discharge. Is the IP a tax liable income? It is because I have heard that some folk who are med discharged do not pay tax on their med pension. Thanks.

If you are leaving with a combination of AFPS 75 and AFPS 15 Tier 1 benefits you should get:

An AFPS 75 pension straight away, together with a lump sum of three times the pension. The pension will be based on the proportion of your total service that was as an AFPS 75 member. The pension is index linked from the off but it is only tax free if your discharge is attributable. Non-attrib invaliding pension are index linked but taxable.

From AFpS 15 you will get a deferred pension, payable at your state pension age Plus either a proportion of the Tier 1 lump sum unless you have reached the EDP Point, in which case you will receive that instead.

 

[dessp2]

If you are leaving with a combination of AFPS 75 and AFPS 15 Tier 1 benefits you should get:

An AFPS 75 pension straight away, together with a lump sum of three times the pension. The pension will be based on the proportion of your total service that was as an AFPS 75 member. The pension is index linked from the off but it is only tax free if your discharge is attributable. Non-attrib invaliding pension are index linked but taxable.

From AFpS 15 you will get a deferred pension, payable at your state pension age Plus either a proportion of the Tier 1 lump sum unless you have reached the EDP Point, in which case you will receive that instead.

Roger that. Many thanks.