The Armed Forces Redundancy Scheme Order 2020

PART 3 Special provision for eligible persons with AFPS 1975 service

Overview and application of this Part

15.  This Part applies to and determines the amount of compensation for a person who is eligible under paragraph 7, but who also had a period of service before 1st April 2015 which entitled them to be an active member of AFPS 1975, and where there was either no gap between those periods of service, or any gap was 5 years or less(1).

Interpretation of this Part

16.  In this Part—

“AFRS 2010 redundancy reckonable service” in relation to a person means service that would have counted as redundancy reckonable service under the AFRS 2010 had the person been eligible for a payment under that scheme, and

“total service”, in relation to a person, means the sum of their redundancy qualifying service and their AFRS 2010 redundancy reckonable service.

Amount of payment: long service commitment – leaves before AFPS 1975 redundancy point

17.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have served to age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service before serving 18 years after having reached age 18 or (in the case of officers only) 16 years after having reached age 21,

and in this paragraph references to service are to redundancy qualifying service.

(2) The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

(3) The AFRS 2010 style payment is calculated as follows—

Step 1:

where—

• F is final relevant earnings, and

• TS is total service.

Step 2: take the result of step 1 and multiply by .

where—

• RRS is the person’s AFRS 2010 redundancy reckonable service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: 10.2% x F x TS

where—

• F is final relevant earnings, and

• TS is total service.

• Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: long service commitment – leaves between AFPS 75 redundancy point and EDP 2015 point

18.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have served to age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service on or after serving 18 years after having reached age 18 or (in the case of officers only) 16 years after having reached age 21, but before either reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

(2) The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

(3) The AFRS 2010 style payment is calculated as follows—

Step 1: If R is more than or equal to one year,

If R is less than one year,

where—

• F is final relevant earnings, and

• R is the number of years’ service the member had left to serve in their current commitment.

Step 2: take the result of step 1 and multiply by

where—

• RRS is the person’s AFRS 2010 redundancy reckonable service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: 10.2% x F x TS

Step 2: take the result of step 1 and multiply by

where—

• F is final relevant earnings,

• Q is redundancy qualifying service, and

• TS is total service (to be no more than 20).

Amount of payment: long service commitment – leaves after EDP 2015 point

19.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have served to age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service on or after either reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

(2) The amount payable under paragraph 8(1) comprises an AFRS 2010 style payment and an AFRS 2020 style payment.

(3) The AFRS 2010 style payment is calculated as follows—

Step 1: If R is more than or equal to one year,

If R is less than one year,

where—

• F is final relevant earnings, and

• R is the number of years’ service the member had left to serve in their current commitment.

But where the person is entitled to a maximum pension under AFPS 1975 when that person’s service ceases, or would be so entitled if that person were an active member of the AFPS 1975 in relation to the service that is ceasing, the result of Step 1 must not exceed 6 months’ pay.

Step 2: take the result of step 1 and multiply by

where—

• RRS is the person’s AFRS 2010 redundancy reckonable service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: If R is more than 4, the result of step 1 is

If R is less than or equal to 4,

where—

• F is final relevant earnings, and

• R is the number of remaining years of service the member had left to serve in their current commitment.

But where the person has 40 or more years of pensionable service as a member of the AFPS 2015, the result of step 1 can be no more than half of final relevant earnings.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: hybrid commitment – leaves before AFPS 1975 redundancy point

20.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have served at least 18 years after having reached age 18 or (in the case of officers only) at least 16 years after having reached age 21, but would not have reached age 60 or been entitled to EDP 2015 payments, and

(b) actually ceases service before serving 18 years after having reached age 18 or (in the case of officers only) 16 years after having reached age 21, and before reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

(2) The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

(3) The AFRS 2010 style payment is calculated as follows—

Step 1:

where—

• F is final relevant earnings, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• RRS is AFRS 2010 redundancy reckonable service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: Take the lower of—

(a) 10.2% x F x TS, and

(b) (10.2% x F X R) + (10.2% x F)

where—

• F is final relevant earnings,

• R is the number of years’ service that the member had left to serve in their commitment, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: hybrid commitment – leaves between AFPS 1975 redundancy point and EDP 2015 point

21.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have served at least 18 years after having reached age 18 or (in the case of officers only) at least 16 years after having reached age 21, but would not have reached age 60 or been entitled to EDP 2015 payments, and

(b) actually ceases service having served at least 18 years after having reached age 18 or (in the case of officers only) at least 16 years after having reached age 21, but before either reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

(2) The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

(3) The AFRS 2010 style payment is calculated as follows—

Step 1: If R is more than or equal to one year, the result of step 1 is

If R is less than one year, the result of step 1 is

where—

• F is final relevant earnings, and

• R is the number of years’ service the member had left to serve in their current commitment.

Step 2: take the result of step 1 and multiply by

where—

• RRS is the person’s AFRS 2010 redundancy reckonable service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: Take the lower of—

(a) 10.2% x F x TS, and

(b) (10.2% x F x R) + (10.2% x F)

where—

• F is final relevant earnings,

• R is the number of remaining years that the member had left to serve in their commitment, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: short service commitment

22.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would not have 18 years after having reached age 18, or (in the case of officers only) 16 years after having reached age 21, and

(b) actually ceases service before serving 18 years after having reached age 18 or (in the case of officers only) at least 16 years after having reached age 21,

and in this paragraph references to service are to redundancy qualifying service.

(2) The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

(3) The AFRS 2010 style payment is calculated as follows—

Step 1: Take the lower of—

(a) , and

(b)

where—

• F is final relevant earnings,

• R is the number of remaining years that the member had left to serve in their commitment, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• RRS is the person’s AFRS 2010 redundancy reckonable service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: Take the lower of—

(a) 10.2% x F x TS, and

(b) (10.2% x F x R) + (10.2% x F)

where—

F is final relevant earnings,

R is the number of remaining years that the member had left to serve in their commitment, and

TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

(1)

If a person has a gap of more than 5 years between their service as a member of the AFPS 1975 and their service as a member of the AFPS 2015, their AFRS 2020 redundancy payment is based purely on their service on or after 1st April 2015, and their service as a member of AFPS 1975 is ignored.