The Armed Forces Redundancy Scheme Order 2020

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Armed Forces Redundancy Scheme Order 2006 (S.I. 2006/55) and the Armed Forces (Redundancy, Resettlement and Gratuity Earnings (Schemes) (No. 2) Order 2010 (S.I. 2010/832), and establishes a new redundancy scheme for members of the Armed Forces: the Armed Forces Redundancy Scheme 2020 (“the AFRS 2020”).

Part 1 of the Order provides that it comes into force on 1st January 2021.

Part 2 of the Order establishes the AFRS 2020.

Part 3 of the Order amends the Armed Forces Redundancy Scheme 2006 to reflect the introduction of flexible service under the Armed Forces (Flexible Working) Act 2018, and to add further detail regarding eligibility and criteria.

Part 4 of the Order amends the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No. 2) Order to reflect the introduction of flexible service under the Armed Forces (Flexible Working) Act 2018, and to add further detail regarding eligibility criteria.

The Schedule to the Order sets out the rules of the AFRS 2020. This is a redundancy compensation scheme for service personnel who were, immediately before ceasing service, either active members of the Armed Forces Pension Scheme 2015 or who were entitled to active membership of that scheme but who had opted out of such membership. The AFRS 2020 applies to regular armed forces, and to members of the reserve forces who are on either a full time reserve service commitment or an additional duties commitment at the time their service ceases.

• Part 1 of the Schedule contains definitions of terms used in the AFRS 2020 and methods of calculation.

• Part 2 of the Schedule contains the rules relating to eligibility for, entitlement to and amount of compensation.

• Part 3 of the Schedule makes transitional provision for persons who, before 1st April 2015, were active members of the Armed Forces Pension Scheme 1975.

• Part 4 of the Schedule makes transitional provision for persons who, before 1st April 2015, were active members of the Armed Forces Pension Scheme 2005.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen. An Explanatory Memorandum has been published alongside these Regulations on www.legislation.gov.uk.