The Armed Forces Pension Scheme Order 2005

[F1 Transition member with permanent serious ill-health who reaches age 55 U.K.

15.— (1) This paragraph applies in relation to a transition member with continuity of service (T) who is receiving an ill-health pension (active members with permanent serious ill-health) in accordance with paragraph 14.

(2) On the day T reaches age 55—

(a) of the benefits that were payable under paragraph 14(2)(b), the AFPS 2005 basic earned benefits cease to be payable under paragraph 14(2)(b) and instead become payable under the AFPS 2005; and

(b) of the benefits that were payable under paragraph 14(2)(b), the AFPS 2005 permanent serious ill-health enhancement benefits continue to be payable under paragraph 14(2)(b).

(3) For the purpose of this paragraph, subject to sub-paragraphs (4) and (5)—

(a) the “AFPS 2005 basic earned benefits” means the amount arrived at by multiplying one seventieth of T’s final pensionable earnings by T’s reckonable service in the AFPS 2005 expressed as number of years; and

(b) the “AFPS 2005 permanent serious ill-health enhancement benefits” means the benefits payable at paragraph 14(4) in respect of service before T’s transition date minus the AFPS 2005 basic earned benefits.

(4) If T—

(a) has had their benefits reduced in accordance with rule D.12 (reduction in pension debit member’s benefits) of the AFPS 2005, that reduction is to be applied to the amount at paragraph (3)(a);

(b) has exercised an option under rule D.10 (option to exchange lump sum for pension) of the AFPS 2005, the amount at paragraph (3)(a) is to be increased by the amount of the additional pension resulting from that option;

(c) has had a deduction made to their benefit in accordance with rule J.13 (deduction of special lump sum death benefits charge) of the AFPS 2005, that deduction is to be applied to the amount at paragraph (3)(a);

(d) has had their benefits adjusted in accordance with section 237E (consequential benefit adjustment to be reasonable etc) of the Finance Act 2004, that adjustment is to be applied to the amount at paragraph (3)(a).

(5) If the amount at paragraph 3(a), after having been adjusted where applicable under sub-paragraph (4), is a negative amount, the “AFPS 2005 basic earned benefits” are zero, and the “AFPS 2005 permanent serious ill-health enhancement benefits” means the benefits payable at paragraph 14(4).]

Textual Amendments

F1 Sch. 2 inserted (1.4.2015) by The Armed Forces (Transitional Provisions) Pensions Regulations 2015 (S.I. 2015/568), reg. 1(2), Sch. 2