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The Armed Forces Pension Scheme Order 2005
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- 06/04/2005- Amendment
- 17/12/2014
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C.1. Member’s option to pay contributions to increase serviceU.K.
This section has no associated Explanatory Memorandum
(1) An active member may opt to make periodical contributions to the Scheme during the contractual option period to increase his reckonable service by an additional period.
This is subject to rule C.5 (restriction on pension debit members making contributions).
(2) The option may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.
(3) A member may exercise the option under paragraph (1) more than once.
(4) If a member exercises the option under paragraph (1), the contributions are payable by deduction from his earnings—
(a)for so much of the member’s next relevant pay period as begins with the member’s birthday, and
(b)for all subsequent pay periods beginning during the contractual option period.
This is subject to rules C.2 (cancellation of options) and C.4(1) (absence from work).
(5) If a member exercises the option under paragraph (1)—
(a)the contributions payable are expressed as a percentage of his pensionable earnings for the time being, and
(b)the additional period of reckonable service that may be counted as a result of opting to pay contributions at that rate is such period as is indicated in tables issued by the Secretary of State, after consultation with the Scheme actuary, for a person of the member’s age at the date on which he makes his first payment.
(6) A member may not make periodical contributions of less than 0.01%, or more than 15%, of his pensionable earnings for the time being.
(7) In this rule—
“the contractual option period”, in relation to an option under paragraph (1), means the period whilst the member remains an active member or such shorter period as may be specified in the option; and
“the member’s next relevant pay period” means the pay period in which the member’s next birthday after the Scheme administrator receives the member’s application to exercise the option under paragraph (1) falls.
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