GIP (Guaranteed Income Payment)
A Guaranteed Income Payment is the tax-free, index-linked monthly income paid for life under the Armed Forces Compensation Scheme, on top of the lump sum. It is only paid on tariff levels 1 to 11, at 100, 75, 50 or 30% of salary depending on the level, with an age factor so younger members receive more. A GIP of 50% or more also brings the Armed Forces Independence Payment.
Related: see how this affects your numbers with the armed forces pension calculator, free AFPS 75, 05 and 15 estimates for pension, lump sum and EDP.
Definitions are written in plain English to help you understand your pension and are not regulated financial advice. For an official figure contact Veterans UK; for advice speak to a regulated adviser. See how we work out our figures in how we calculate.