The Armed Forces Compensation Scheme and Reduction of Benefit.

The Guaranteed Income payment will be reduced if the person also has-

• an invaliding pension or an ill-health pension which is paid for the same injury as the GIP. In these circumstances the GIP is reduced by the full amount of the invaliding pension or the ill-health pension.
• a payment, or a pension which is neither invaliding nor ill-health then the GIP payment is reduced by 75% of the amount of that pension.

Reduction of Survivors Guaratneed Income Payment(SGIP) and Child's Payment(CP).

When a person is in receipt of a pension in addition to either the SGIP or the CP then those benefits will be reduced by 75% of that pension

Abatements for awards of damages

Any payments under the Scheme may be reduced or witheld to take into account any payment for damages in respect of the same death, condition or injury. The rules state that this is to ensure "that no person is compensated twice for the same injury." This applies to:

1. awards made under the Criminal Injuries Compensation Scheme established under the Criminal Injuries Compensation Act 1995;
2. awards made under the Criminal Injuries (Compensation) (Northern Ireland) Order 1988;
3. awards made under the MOD Criminal Injuries Compensation (Overseas) Scheme.

and to any award where:

1. a civil court has made an order for the payment of damages;
2. a claim for damages and/or compensation has been settled on terms providing for a payment of money;
3. payment of compensation has been ordered by a criminal court in respect of personal injuries;
4. payment under insurance arrangements except where the premium payments have been paid by the claimant.

Compensation recovery

Where a person has been in receipt of standard welfare benefit and a AFCS payment is made in retrospect to cover that period then the payment will be reduced by the amount of benefit received.

Reductions for negligence or misconduct.

Up to 40% of any payment may be witheld by the Veterans Agency if it can be shown that the member's misconduct or negligence contributed to his or her death or injury.

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