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Armed Forces Compensation Scheme

Question for Ministry of Defence

UIN 110328, tabled on 24 January 2022

To ask the Secretary of State for Defence, if he will base the Guaranteed Income Payment (GIP) on the person's final salary at the end of service rather than their age.

Answered on

31 January 2022

Calculation of an individual's Guaranteed Income Payment (GIP) takes a number of factors into consideration. The GIP calculation takes account of both salary and age in determining the lifelong loss of earnings the individual is likely to face, both salary and pension, as a result of their service-caused injury or injuries. It also includes an enhancement for lost future military promotions. This calculation enables the department to provide a payment that not only recognises final salary but also loss of future potential earnings.