The Armed Forces Pension Scheme Order 2005

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

(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) [F1 Subject to paragraphs (5A) and (6), 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.

[F2 (5A) Subject to paragraph (6), where a member who has exercised the option under paragraph (1) is serving on flexible terms—

(a) the member may, for the period of that flexible service, pay the same amount of contributions as would be payable if the member was not serving on flexible terms; and

(b) if the member does not pay the contributions under sub-paragraph (a), the member may opt, within the period of 365 days beginning with the first day after the period of flexible service has ended, to pay the difference between the amount of contributions the member would have paid under sub-paragraph (a) and the contributions actually paid—

(i) by such instalments as the member may agree with the Scheme administrator; or

(ii) by lump sum.]

(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.

Textual Amendments

F1 Words in Sch. 1 rule C.1(5) substituted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), regs. 1(3), 2(6)(a)

F2 Sch. 1 rule C.1(5A) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), regs. 1(3), 2(6)(b)