Yes, but...
from Mousesavers.com -
"Disney has the right to check ID at the gate. Military personnel may bring in non-military guests with the military discount as long as they accompany the non-military person(s) and at least 50% of the group are qualified for the military discount (i.e., active duty, retired, DOD and dependents). If military personnel purchase tickets and give them as gifts to non-military users that they will not be accompanying, they risk having the recipient denied entry and the tickets confiscated."
We haven't bought APs, but we did purchae the free for him, $99 for me pass last December. Our mil IDs were checked at the ticket counter, then the first time we used the tickets at the gate. Mine was checked several times after that because I couldn't get the fingerprint thingie to work.