The Armed Forces Pension Scheme Order 2005

1Citation and commencement and interpretation

2Establishment of the Armed Forces Pension Scheme 2005

3Amendments of the Armed Forces Pension Scheme 2005

4Amendments of other regulations

SCHEDULE 1ARRANGEMENT OF RULES

PART AINTERPRETATION ETC.

A.1Interpretation: general

A.2Meaning of “pensionable earnings”

A.3Meaning of “assumed pay”

A.4Meaning of “final pensionable earnings”

A.5Adjustments for inflation in determining final pensionable earnings

A.6Active membership period

A.7Qualifying service

A.8Reckonable service

A.9Calculation of periods of membership or service etc

A.10Disregard of short breaks in service

PART BMEMBERSHIP

B.1Eligibility: general

B.2Persons with other pension arrangements

B.3Joining the Scheme on starting service

B.4Joining the Scheme after service begins

B.5Leaving the Scheme

PART CCONTRIBUTIONS

Buying Added Years

C.1Member’s option to pay contributions to increase service

C.2Cancellation of options

C.3Effect of making contributions

C.4Absence from work

C.5Restriction on pension debit members making contributions

C.6Purchase of added years for members seconded to NATO or the UN etc

Repayment of Contributions

C.7Repayment of contributions

PART DRETIREMENT BENEFITS

Entitlement to Benefits

D.1Retirement after reaching pension age

D.2Retirement before reaching pension age

D.3Pension credit members' pensions

D.4Early payment of pensions with actuarial reduction

D.5Early payment of benefits: active members with permanent serious ill-health

D.6Early payment of benefits: active members with significant impairment of capacity for gainful employment

D.7Early payment of benefits: deferred members with permanent serious ill-health

D.8Member’s requests for review of ill-health awards

D.9Secretary of State’s power to review ill-health awards

Options to Change Benefits

D.10Option to exchange lump sum for pension

D.11Option for members in serious ill-health to exchange whole pension for lump sum

Pension Debit Members and Pension Credit Members

D.12Reduction in pension debit member’s benefits

D.13Pension credit member’s rights

D.14Election to allocate pension

D.15Procedure for election under rule D.14

D.16Effect of allocation

Contracting-out Obligations (GMPs etc.)

D.17Guaranteed minimum pensions etc

PART EDEATH BENEFITS

Pensions for Adult Dependants

E.1Surviving spouses' and civil partners' pensions

E.2Other adult dependants' pensions

E.3Amount of pensions under rules E.1 and E.2: active members

E.4Amount of pensions under rules E.1 and E.2: deferred members

E.5Amount of pensions under rules E.1 and E.2: pensioner members

E.6Reduction in pensions under rules E.1 and E.2 in cases of wide age disparity

E.7Adult dependants entitled to two or more pensions under this Part

Pensions for Eligible Children

E.8Surviving children’s pensions

E.9Meaning of “eligible child”

E.10Amount of children’s pension under rule E.8: active members

E.11Amount of children’s pension under rule E.8: deferred members

E.12Amount of children’s pension under rule E.8: pensioner members

E.13Children born after the member’s death

E.14Children entitled to three or more pensions

Lump Sum Death Benefits

E.15Death of a member: lump sum benefit

E.16Amount of lump sum benefit under rule E.15: active members

E.17Amount of lump sum benefit under rule E.15: deferred members

E.18Amount of lump sum benefit under rule E.15: pensioner members

E.19Amount of lump sum benefit under rule E.15: pension credit members

E.20Members affected by court orders to former spouses and civil partners on death

E.21Nominations for lump sum death benefits

General Provisions

E.22Pension debit members

E.23Dependants' pensions: suspension and recovery

E.24Recovery of lump sum payments made to nominee

E.25Provisional awards of children’s pensions: later adjustments

E.26Payments under this Part

E.27Dual capacity membership

E.28Guaranteed minimum pensions for surviving spouses

PART FTRANSFERS

F.1Right to transfer value payment

F.2Applications for statements of entitlement

F.3Applications for transfer value payments

F.4Ways in which transfer value payments may be applied

F.5Calculating amounts of transfer value payments

F.6Effect of transfers-out

F.7Right to apply for acceptance of transfer value payment from another scheme

F.8Procedure for applications under rule F.7

F.9Acceptance of transfer value payments

F.10Calculation of transferred-in reckonable service

Miscellaneous Provisions

F.11Public sector transfer arrangements

PART GRE-EMPLOYMENT

G.1Application of Part G

Treatment of Separate Periods of Service: Options to Aggregate

G.2General rule: periods of service treated separately

G.3Option to aggregate earlier membership: previous members of the Scheme

G.4Option to aggregate earlier membership: previous members of the AFPS 1975

G.5Procedure for exercising options under rules G.3 and G.4

G.6Application of rule G.3 to members who opted to leave Scheme

G.7Re-employment after ill-health awards

PART HABATEMENT

H.1Application of Part H

H.2Abatement of pensions on re-employment: general rules

H.3Abatement of pensions: effect of changes after re-employment

H.4Special rule about annual rate of pay in old service in cases of entitlement to two or more pensions

H.5Adjustment of basic pay in old service

H.6General disregard of effect of abatement

PART JMISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

Claims for and Payment of Benefits

J.1Claims for and payment of benefits

J.2False statements etc. about ill-health

J.3Non-assignability

Pension Credit Members with two or more Pension Credits

J.4Pension credit members with two or more entitlements

J.5Forfeiture of benefits

J.6Events enabling forfeiture

J.7Procedure, references etc

Commutation of Small Pensions

J.8Commutation of small pensions

Determination of Questions

J.9Determination of questions

Information, Evidence, Suspension etc.

J.10Information and evidence

Payment and deduction of tax

J.11Payment on behalf of members of lifetime allowance charge

J.12Reduction of benefits and transfer values where lifetime allowance charge payable

J.13Deduction of special lump sum death benefits charge

PART KAFPS 1975 TRANSFEREES

K.1Application of Part K: meaning of “AFPS 1975 transferee”

K.2Options for AFPS 1975 members to join the Scheme under Part K

Transfer of Service from the AFPS 1975

K.3Service credited from the AFPS 1975

K.4Treatment of added years: contributions paid before 6th April 2006

K.5Treatment of preserved awards

K.6Transfers in: transitional provision

K.7Pension debit members

K.8Disapplication of rule E.6

PART LGURKHA PENSION SCHEME TRANSFEREES

L.1Application of Part L: meaning of “Gurkha Pension Scheme transferee”

L.2Option for active members of Gurkha Pension Scheme to join the Scheme

L.3Option for former active members of Gurkha Pension Scheme to join the Scheme

L.4Effect of exercising option under rule L.2 (Gurkha active transferees)

L.5Effect of exercising option under rule L.3 (former active Gurkhas)

L.6Pension debit members

L.7Modifications of Scheme rules in case of Gurkha Pension Scheme transferees

SCHEDULE 2TEMPORARY MODIFICATIONS OF THE ARMED FORCES PENSION SCHEME 2005

1At the end of rule A.4 insert—

2At the end of rule A.5 insert—

3After rule A.5 insert— Inland Revenue restrictions on final pensionable...

4For rule B.2 substitute— Persons with other pension arrangements (1) A person is not eligible to be an active...

5In rule C.1 after paragraph (7) insert—

6In rule C.3(2)(b) after “C.1(6)” insert “or C.8”.

7At the end of rule C.4(3) insert— This is subject...

8For rule C.7 substitute— Repayment of contributions (1) The contributions made by a member under this Part...

9After rule C.7 insert— Inland Revenue limits on contributions The contributions made under this Part in any tax year...

10In rule D.11 after paragraph (5) insert—

11After rule D.17 insert— Inland Revenue limits on lump sums...

12(1) Rule E.16 is amended as follows—

13In rule E.22 after paragraph (6) insert—

14After rule E.28 insert— Inland Revenue limits: pensions (1) No annual pension payable under this Part may exceed...

15(1) Rule J.8 is amended as follows—

2005 No. 438

PENSIONS

The Armed Forces Pension Scheme Order 2005

Made8th March 2005

Laid before Parliament14th March 2005

Coming into force6th April 2005

The Secretary of State for Defence, in exercise of the powers conferred upon him by sections 1(1) and (3), 3 and 10(2), (3) and (4) of the Armed Forces (Pensions and Compensation) Act 20041 hereby makes the following Order: