"A Bill will be introduced to give enabling powers to bring in new pension and compensation arrangements for the Armed Forces."

The Armed Forces Pensions and Compensation Bill will give the defence secretary powers to establish a new Armed Forces Pension Scheme (AFPS), to be introduced in April 2005.

Under the new pension scheme, a death in service lump sum of four times pensionable salary and a widow/widower's pension of 62.5 per cent of the member's pension will be introduced. This will remain payable for life even on remarriage. Dependants' benefits will be extended to unmarried partners both heterosexual and same sex, where there is a substantial arrangement.

The new compensation scheme will include lump sum payments for pain and suffering based on a 15-level tariff, in addition to a pension in cases in which the injuries incurred significantly affect the individual's earning ability. An independent appeal process will be available to individuals unhappy with the MoD's decisions.

In September 2003 the veterans minister announced that the Ministry of Defence had completed its five-year review of current Armed Forces pensions and compensation arrangements.

This included a consultation in 2001 with members of the three forces and ex-servicemen's associations, and an inquiry by the Commons Defence Committee, which published its report in May 2002.

House of Commons

First reading: December 4 2003 (HC Bill 10)

Second reading: January 22 2004

Standing Committe B (until February 26 2004)

• 1st sitting: February 3 2004
• 2nd sitting: February 10 2004 (am)
• 3rd sitting: February 10 2004 (pm)
• 4th sitting: February 24 2004 (am)
• 5th sitting: February 24 2004 (pm)
• 6th sitting: February 26 2004 (am)

Bill as amended in the committee (HC Bill 60)

Remaining stages: May 6 2004

House of Lords

First reading: May 10 2004 (HL Bill 70)

Second reading: June 10 2004

Committee stage:

• 1st day: June 28 2004
• 2nd:day: July 5 2004

Bill as amended in the committee HL Bill 96

Report stage: September 8 2004

Bill as amended in the report HL Bill 110

Third reading: September 15 2004

House of Commons:

Consideration of Lords amendments: October 20 2004

House of Lords:

Consideration of Commons amendments: November 2 2004

House of Commons:

Consideration of Lords amendments: November 16 2004

House of Lords:

Consideration of Commons amendments: November 17 2004

Royal assent: November 18 2004

Armed Forces (Pensions and Compensation) Act 2004