Armed Forces Pension Scheme (AFPS) 05 non club transfers out
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Members who leave AFPS 05 with a preserved pension have the option to transfer the value of this pension to another pension arrangement. The amount transferred is known as the “transfer value” or “cash equivalent”.
These factors should also be used in conjunction with the adjustments in market conditions (AMC) table.
Please note there are different factor tables for males and females.
Changes from April 2015 affecting transfer out
The government has banned transfers from unfunded public service defined benefit schemes to funded defined contribution schemes from 6 April 2015. This is applicable to all Armed Forces Pension Schemes including AFPS 15, AFPS 05, AFPS 75, RFPS 05, FTRS 97, NRPS and Gurkha Pension Scheme. The Pension Schemes Act 2015 and the Taxation of Pensions Act 2014 provided the government with the power to ban transfers in the UK and abroad.
The majority of public sector schemes are unfunded. As there are no funds for these pension schemes any decisions to transfer would represent an upfront direct cost to the Exchequer and the taxpayer and that is why the ban has been enforced.