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Armed Forces Pension Scheme

Volume 451: debated on Wednesday 1 November 2006

To ask the Secretary of State for Defence what the cost was of extending survivors' benefits in the armed forces pension scheme to unmarried partners in each year since such provision was introduced. (93045)

The armed forces pension scheme 1975 (AFPS 75) extended survivors’ benefits to unmarried partners in 2003 but only in cases where death was caused by service. The new pension schemes, armed forces pension scheme 2005 (AFPS 05) and the reserve forces pension scheme 2005 (RFPS), both feature pensions for eligible partners irrespective of the cause of death.

The MOD makes a substantial contribution into the armed forces pension schemes each year for the approximately 200,000 current members. The current overall contribution equates to 24.8 per cent. of the armed forces pay bill. This contribution covers the differing benefits offered by each of the armed forces schemes run by the MOD. The necessary calculations could be undertaken only at disproportionate cost.

To ask the Secretary of State for Defence what the estimated cost of the armed forces pension scheme will be in each year from 2001-02 to 2030-31. (93539)

The actual net resource costs (in accordance with accounting standards) of the armed forces pension scheme (AFPS) from financial year (FY) 2001-02 to 2005-06 are detailed as follows. Estimates for FY 2006-07 to 2009-10 based on statistical and actuarial evaluation are also shown. Figures for future, years could be provided only at disproportionate cost. The published accounts for the AFPS show the overall provision for future scheme liability.

Net resource costs

Financial year

£

Actual costs

2001-02

1,381,772

2002-03

1,333,631

2003-04

3,481,850

2004-05

3,294,301

2005-06

4,341,400

Estimated costs

2006-07

4,588,662

2007-08

4,756,731

2008-09

4,928,911

2009-10

5,105,349