The Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions (Amendment) Order 2016

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006 (“the principal Order”) which makes provision for pensions and other awards in respect of disablement or death due to service before 6th April 2005 in the naval, military and air forces. The principal Order contains the scheme which provides the pensions and other awards. This scheme is known as the War Pensions Scheme (“WPS”).

Articles 2 and 3 make amendments to the principal Order, which are consequential to the introduction of the new state pension for people reaching pensionable age on or after 6th April 2015 by the Pensions Act 2014 (c.19).

• Article 2 amends article 10 of the principal Order so a person’s receipt of a state pension is considered in deciding whether the person should receive a severe disablement occupational allowance under article 10 of the principal Order.

• Article 3 amends article 12 of the principal Order so a person’s eligibility for a state pension may be taken into account by the Secretary of State in making an award of a personal allowance under article 12(1)(a) of the principal Order.

Parts 3, 4 and 5 of this Order amend the principal Order to enable a person who has diffuse mesothelioma to elect to receive a lump sum payment under the WPS (“diffuse mesothelioma lump sum”) if this condition was caused by service in the period before 6th April 2005.

Part 3 of this Order inserts a new Part 2A, comprising a new article 21A, into the principal Order. Article 21A provides that awards under the WPS will not be paid to or in respect of a person who has elected to receive a diffuse mesothelioma lump sum, except for funeral expenses in accordance with article 32. Article 21A specifies which provisions of the principal Order will apply to a person who elects to receive a diffuse mesothelioma lump sum.

Part 4 of this Order makes miscellaneous amendments to enable certain provisions of the principal Order to apply to a person who has elected to receive a diffuse mesothelioma lump sum. In addition, article 10 of this Order substitutes the annual earnings figure specified in Part 4 of Schedule 1 of the principal Order. Article 12(4) of the principal Order provides that a person may be awarded unemployability allowances under article 12 if they are in receipt of therapeutic earnings (as defined in Schedule 6 to the principal Order) that are unlikely to exceed that annual earnings figure.

Part 5 of this Order inserts new Schedule 1A (diffuse mesothelioma lump sums) in the principal Order. Schedule 1A sets out the circumstances in which a person will be entitled to a diffuse mesothelioma lump sum, the requirements for electing to receive a lump sum, and how the amount of the lump sum is calculated.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen. An assessment has been made of the impact of the introduction of the new state pension. Copies of that impact assessment may be obtained from the Better Regulation Unit of the Department for Work and Pensions, 2D Caxton House, Tothill Street, London SW1H 9NA or from the DWP website: https://www.gov.uk/government/uploads/system/uploads/attachments_data/file/311316/pensions-act-ia-annex-a-single-tier-state-pension.pdf . (Annex A contains the assessment for the new state pension.)