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The Armed Forces Pension Scheme Order 2005
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D.11. Option for members in serious ill-health to exchange whole pension for lump sumU.K.
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(1) Before a pension becomes payable to an active member, a deferred member or a pension credit member under this Part or at the time when a pension becomes payable under rule D.5 (early payment of benefits: serious ill-health), the member may opt to exchange the whole pension for a lump sum [F1if the Secretary of State—
(a)
is satisfied that the member is expected to live for less than one year, and
(b)
has received evidence from a registered medical practitioner that that is the case.]
(2) Where [F2an active member or a deferred member] so opts, he is to be paid as soon as is reasonably practicable an amount equal to the amount of the annual pension, multiplied by 5.
[F3(2A) Where a pension credit member so opts, he is to be paid as soon as is reasonably practicable an amount that in the opinion of the Scheme actuary is equivalent to the value of his pension credit rights.]
(3) In paragraph (2) “the amount of the annual pension” means the amount of the annual pension to which the member would be entitled under this Part apart from the option, calculated as at the time payment would otherwise first be due (but disregarding any service that the member might have accrued if he had continued in service until that time).
F4(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) The option under this rule may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.
Textual Amendments
F1Words in Sch. 1 rule D.11(1) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 5(2)
F2Words in Sch. 1 rule D.11(2) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 5(3)
F3Sch. 1 rule D.11(2A) inserted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 5(4)
F4Sch. 1 rule D.11(4) omitted (6.4.2009) by virtue of The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(7)
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