The Armed Forces Redundancy Scheme Order 2020

In this Schedule, the “service reduction percentage” in respect of a period of flexible service is given by the formula, expressed as a percentage—

(A−B)A

For the purposes of the Scheme, a period of flexible service ends and another begins when any change in the service reduction percentage occurs.

In this Schedule, “final relevant earnings” in relation to a person, means the greatest amount that is the person’s total relevant earnings for 365 consecutive days falling within the period of 3 years ending with the person’s last day of redundancy qualifying service.

If the person was required to be in service as a member of the armed forces during any period of 365 consecutive days falling within the period of 3 years mentioned in sub-paragraph (1), but was not in such service for a period of 365 consecutive days, then the sub-paragraph applies as if it referred to the person’s annualised relevant earnings in the period of redundancy qualifying service ending with the last day of such service.

The person’s “annualised relevant earnings” in a period of service are the amount given by the formula—

RE×365N

In the case of a person who has served on flexible terms during any period for which relevant earnings are to be calculated under sub-paragraph (1), that person’s relevant earnings are to be calculated as though they had not served on flexible terms for that period.

In this Schedule, and subject to sub-paragraph (2), “redundancy qualifying service” means pensionable service in the AFPS 2015, or service that would have been pensionable service in the AFPS 2015 had the person not opted to cease to be an active member of that scheme.

Where a person has served on flexible terms, the person’s redundancy qualifying service for each period of such service, calculated for the purposes of sub-paragraph (1), is reduced by the service reduction percentage applicable to that period of flexible service.

For the purposes of paragraphs 9, 10 and 11, pensionable service in the AFPS 2015 is pensionable service as a member of the regular forces.

In this Schedule, periods of service are to be calculated in accordance with sub-paragraphs (2) to (5).

Periods of service are to be expressed in the first instance in whole years, and days, and the initial aggregation of periods that require to be aggregated is done in the first instance by reference to periods so expressed.

If, when all periods of service that are required to be aggregated have been aggregated, there is any excess part day over the number of whole days, that excess is rounded up to a full day.

A person is eligible for a payment under paragraph 8(1) if they meet conditions A to E as provided for in sub-paragraphs (2) to (6).

Condition B is that the person is an active member of the AFPS 2015 or has opted to cease to be an active member of that scheme.

Condition E is that the person is not entitled to an ill-health pension.

An eligible person becomes entitled to a lump sum payment when they cease to be in service as referred to in paragraph 7(5)(a) or cease to be on a commitment as referred to in paragraph 7(5)(b).

The lump sum must be paid before the end of the 3 month period beginning with the day on which the person ceases to be in service as referred to in paragraph 7(5)(a) or on a commitment as referred to in paragraph 7(5)(b).

The amount payable under paragraph 8(1) is 10.2% of the person’s final relevant earnings multiplied by the number of years of redundancy qualifying service served by the person (subject to a maximum of 20 years).

Subject to sub-paragraphs (3) and (4), the amount payable under paragraph 8(1) is equal to the person’s final relevant earnings.

If the number of remaining years that the person had left to serve in their commitment (“R”) is less than 4, the amount payable under paragraph 8(1) is 25% of their final relevant earnings multiplied by R.

If the person has 40 or more years of pensionable service as a member of AFPS 2015, the maximum amount payable under paragraph 8(1) is half of the person’s final relevant earnings.

This paragraph applies to an eligible person who is serving in the reserve forces on an FTRS commitment.

This paragraph applies to an eligible person who is serving in the reserve forces on an additional duties commitment.

If the service break is less than the relevant period, the person must repay the relevant portion of the payment.

In this Part—

• “AFRS 2010 redundancy reckonable service” in relation to a person means service that would have counted as redundancy reckonable service under the AFRS 2010 had the person been eligible for a payment under that scheme, and

• “total service”, in relation to a person, means the sum of their redundancy qualifying service and their AFRS 2010 redundancy reckonable service.

For the purposes of this Part, where a remedy member with remediable service under the AFPS 1975 makes a section 6 election under Schedule 4 (remediable service) to the AFPS 1975, their AFRS 2010 redundancy reckonable service does not include any period of remediable service which would otherwise have counted as such redundancy reckonable service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

The AFRS 2010 style payment is calculated as follows—

Step 1: $\frac{1}{8}\times F\times TS$

• where—

  • F is final relevant earnings, and

  • TS is total service.

Step 2: take the result of step 1 and multiply by $\frac{RRS}{TS}$.

• where—

  • RRS is the person’s AFRS 2010 redundancy reckonable service, and

  • TS is total service.

The AFRS 2020 style payment is calculated as follows—

Step 1: 10.2% x F x TS

• where—

  • F is final relevant earnings, and

  • TS is total service.

  • Step 2: take the result of step 1 and multiply by $\frac{Q}{TS}$

  where—

  • Q is redundancy qualifying service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

The AFRS 2010 style payment is calculated as follows—

Step 1: If R is more than or equal to one year, $25\%\times F$

If R is less than one year, $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of years’ service the member had left to serve in their current commitment.

Step 2: take the result of step 1 and multiply by $\frac{RRS}{TS}$

• where—

  • RRS is the person’s AFRS 2010 redundancy reckonable service, and

  • TS is total service.

The AFRS 2020 style payment is calculated as follows—

Step 1: 10.2% x F x TS

Step 2: take the result of step 1 and multiply by $\frac{Q}{TS}$

• where—

  • F is final relevant earnings,

  • Q is redundancy qualifying service, and

  • TS is total service (to be no more than 20).

The amount payable under paragraph 8(1) comprises an AFRS 2010 style payment and an AFRS 2020 style payment.

The AFRS 2010 style payment is calculated as follows—

Step 1: If R is more than or equal to one year, $25\%\times F$

If R is less than one year, $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of years’ service the member had left to serve in their current commitment.

But where the person is entitled to a maximum pension under AFPS 1975 when that person’s service ceases, or would be so entitled if that person were an active member of the AFPS 1975 in relation to the service that is ceasing, the result of Step 1 must not exceed 6 months’ pay.

Step 2: take the result of step 1 and multiply by $\frac{RRS}{TS}$

• where—

  • RRS is the person’s AFRS 2010 redundancy reckonable service, and

  • TS is total service.

The AFRS 2020 style payment is calculated as follows—

Step 1: If R is more than 4, the result of step 1 is $F$

If R is less than or equal to 4, $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of remaining years of service the member had left to serve in their current commitment.

But where the person has 40 or more years of pensionable service as a member of the AFPS 2015, the result of step 1 can be no more than half of final relevant earnings.

Step 2: take the result of step 1 and multiply by $\frac{Q}{TS}$

• where—

  • Q is redundancy qualifying service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

The AFRS 2010 style payment is calculated as follows—

Step 1: $\frac{1}{8}\times F\times TS$

• where—

  • F is final relevant earnings, and

  • TS is total service.

Step 2: take the result of step 1 and multiply by $\frac{RRS}{TS}$

• where—

  • RRS is AFRS 2010 redundancy reckonable service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

The AFRS 2010 style payment is calculated as follows—

Step 1: If R is more than or equal to one year, the result of step 1 is $25\%\times F$

If R is less than one year, the result of step 1 is $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of years’ service the member had left to serve in their current commitment.

Step 2: take the result of step 1 and multiply by $\frac{RRS}{TS}$

• where—

  • RRS is the person’s AFRS 2010 redundancy reckonable service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2010 style payment and an AFRS 2020 style payment.

For the purposes of this Part, where a remedy member with remediable service under the AFPS 2005 makes a section 6 election under Schedule 3 (remediable service) to the AFPS 2005, their AFRS 2006 relevant service does not include any period of remediable service which would otherwise have counted as such relevant service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2006 style payment and an AFRS 2020 style payment.

The AFRS 2006 style payment is calculated as follows—

Step 1: If TS is less than or equal to 18, the result of step 1 is $\frac{1}{8}\times F\times TS$

If TS exceeds 18, the result of step 1 is $\frac{1}{8}\times F\times 18$

• where—

  • F is final relevant earnings, and

  • TS is total service.

Step 2: take the result of step 1 and multiply by $\frac{RS}{TS}$

• where—

  • RS is AFRS 2006 relevant service, and

  • TS is total service.

The AFRS 2020 style payment is calculated as follows—

Step 1: 10.2% x F x TS

• where—

  • F is final relevant earnings, and

  • TS is total service (to be no more than 20).

Step 2: take the result of step 1, and multiply by $\frac{Q}{TS}$

• where—

  • Q is redundancy qualifying service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2006 style payment and an AFRS 2020 style payment.

The AFRS 2006 style payment is calculated as follows—

Step 1: If R is more than or equal to 4, $F$.

If R is less than 4, $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of years’ service the member had left to serve in their current commitment.

But if the person is entitled to a maximum pension as a member of AFPS 2005, step 1 can be no more than half of final relevant earnings.

Step 2: take the result of step 1, and multiply by $\frac{RS}{TS}$

• where—

  • RS is AFRS 2006 relevant service, and

  • TS is total service.

The AFRS 2020 style payment is calculated as follows—

Step 1: If TS is less than or equal to 20, the result of step 1 is 10.2% x F x TS

If TS is more than 20, the result of step 1 is 10.2% x F x 20

• where—

  • F is final relevant earnings, and

  • TS is total service.

Step 2: take the result of step 1 and multiply by $\frac{Q}{TS}$

• where—

  • Q is redundancy qualifying service, and

  • TS is total service.

The amount payable under paragraph 8(1) comprises an AFRS 2006 style payment and an AFRS 2020 style payment.

The AFRS 2006 style payment is calculated as follows—

Step 1: If R is more than or equal to 4, the result of step 1 is $F$

If R is less than 4, the result of step 1 is $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of remaining years that the member had left to serve in their commitment.

But if the person is entitled to a maximum pension as a member of the AFPS 2005, step 1 can be no more than half of final relevant earnings.

Step 2: take the result of step 1 and multiply by $\frac{RS}{TS}$

• Where—

  • RS is the person’s AFRS 2006 relevant service, and

  • TS is total service.

The AFRS 2020 style payment is calculated as follows—

Step 1: If R is more than 4, the result of step 1 is $F$

If R is less than or equal to 4, the result of step 1 is $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of remaining years that the member had left to serve in their commitment.

Step 2: take the result of step 1 and multiply by $\frac{Q}{TS}$

• where—

  • Q is redundancy qualifying service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2006 style payment and an AFRS 2020 style payment.

The AFRS 2006 style payment is calculated as follows—

Step 1: If TS is less than or equal to 18, the result of step 1 is $\frac{1}{8}\times F\times TS$

If TS exceeds 18, the result of step 1 is $\frac{1}{8}\times F\times 18$

• where—

  • F is final relevant earnings, and

  • TS is total service.

Step 2: take the result of step 1 and multiply by $\frac{RS}{TS}$

• where—

  • RS is AFRS 2006 relevant service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2006 style payment and an AFRS 2020 style payment.

The AFRS 2006 style payment is calculated as follows—

Step 1: If R is more than or equal to 4, the result of step 1 is $F$

If R is less than 4, the result of step 1 is $25\%\times F\times R$

• where—

  • F is final relevant earnings, and

  • R is the number of remaining years that the member had left to serve in their commitment.

But if the person is entitled to a maximum pension as a member of AFPS 2005, step 1 can be no more than half of final relevant earnings.

Step 2: take the result of step 1 and multiply by $\frac{RS}{TS}$

• where—

  • RS is AFRS 2006 relevant service, and

  • TS is total service.

The amount payable under paragraph 8(1) is comprised of an AFRS 2006 style payment and an AFRS 2020 style payment.