Milroy v MOD: reservists' pensions head to the Court of Session
An employment tribunal found that the MOD treated a reservist less favourably by denying him access to AFPS 75 and by calculating his daily pay using a divisor of 365.25. The MOD appealed and lost. It has now taken the case to the Court of Session, where a hearing is listed for 8 October 2026. If it stands, the decision points to non mobilised reserve service before April 2015 having been pensionable. It is not settled yet, and no reservist should act as though it is.
Key takeaways
- In August 2024 an employment tribunal found in favour of Major Charles Milroy on both the pension access and the daily pay calculation.
- On 29 January 2026 the Employment Appeal Tribunal refused the MOD's appeal on all four grounds.
- The MOD then asked the Court of Session to challenge the decision, and a hearing is listed for 8 October 2026.
- This is not settled law. Until the Court of Session rules, the position is contested.
- If it stands, it points to non mobilised reserve service before 1 April 2015 having been pensionable under AFPS 75 or AFPS 05, subject to the two year qualifying period.
- Reserve service from 1 April 2015 onward is already pensionable under AFPS 15 and is not affected by this case.
How the case got here
| Date | What happened |
|---|---|
| 5 August 2024 | Employment tribunal in Scotland finds in favour of Major Charles Milroy |
| 17 September 2024 | MOD submits an appeal to the Employment Appeal Tribunal |
| 29 January 2026 | The Employment Appeal Tribunal refuses the appeal on all four grounds |
| 25 February 2026 | The case is debated in the House of Commons |
| Late March 2026 | MOD asks the Court of Session for permission to challenge the decision |
| 8 October 2026 | Court of Session hearing |
The Employment Appeal Tribunal judgment is reported as Advocate General for Scotland v Mr Charles Milroy [2026] EAT 25.
What the tribunal found
The claim was brought under the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000. The tribunal found three things.
- A full time regular officer of the same rank is engaged on the same type of contract, so is a valid comparator.
- Calculating the reservist's daily pay by dividing a regular's annual salary by 365.25 treated him less favourably, because it failed to reflect the periods when regulars are not working.
- He received less favourable treatment by being denied access to a pension under AFPS 75 and its successor schemes.
The MOD's historic justification was that very few reservists would earn enough to meet the scheme's entry requirements, so admitting them would cost more to administer than it was worth. The tribunal was not persuaded that the administrative burden justified the exclusion.
What it would mean if it stands
The Forces Pension Society's reading is deliberately careful, and it is worth keeping it that way. With the exception of the two year qualifying period, the decision appears to indicate that non mobilised reserve service before 1 April 2015 should have been pensionable under AFPS 75 or AFPS 05, and that using an annual divisor of 365.25 for the reserve rate of pay, rather than a smaller number reflecting non working days, was wrong.
Depending on individual circumstances, that could mean affected reservists recovering lost pension benefits and compensation for lost pay.
There is a separate point that often gets missed. Under the 2015 pension remedy, members may be able to aggregate pension benefits from different periods of service provided there is no disqualifying break of more than five years. Where MOD administrative delay causes someone to fall the wrong side of that test, it can be expensive.
Do not read this as an entitlement. The MOD's challenge is live and the Court of Session hears it on 8 October 2026. Nobody should assume a payment is coming, and we are not going to publish a claims deadline, because employment tribunal time limits are strict, fact specific, and nothing in the published material sets out the position for follow on claimants. If you think you may be affected, read the Forces Pension Society's guidance and take advice.
If you are a reservist now
Nothing in this case affects reserve service from 1 April 2015 onward. Reserves and FTRS personnel have built pension under AFPS 15 since then, and our reserves pension calculator estimates that in the normal way.
What the case touches is the earlier period, non mobilised reserve service before April 2015, which was not pensionable at the time and which the calculator therefore does not model. We are not going to change the engine while the case is live, because doing so would mean publishing figures based on a legal position that is currently being challenged.
Frequently asked questions
James Hartley
James Hartley spent 22 years in the British Army, including unit personnel administration and pensions and records duties, and now writes the scheme guides and scenario pages on this site. He is not a regulated financial adviser, so the content is general information rather than personal advice.
Sources: gov.uk · GAD factors · Veterans UK · Forces Pension Society · MoneyHelper.