The Armed Forces Redundancy Scheme Order 2020

PART 4 Special provision for eligible persons with AFPS 2005 service

Overview and application of this Part

23.  This Part applies to and determines the amount of compensation for a person who is eligible under paragraph 7, but who also had a period of service before 1st April 2015 which entitled them to be an active member of AFPS 2005, and where there was either no gap between those periods of service, or any gap was 5 years or less.

Interpretation of this Part

24.  In this Part—

(a) “AFRS 2006 relevant service”, in relation to a person, means service that would have counted as relevant service under the AFRS 2006 had the person been eligible for a payment under that scheme.

(b) “total service”, in relation to a person, means the sum of their redundancy qualifying service and their AFRS 2006 relevant service.

Amount of payment: long service commitment – leaves before EDP 2005 point

25.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have reached age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service before either reaching age 55 or becoming entitled to EDP 2005 payments,

and in this paragraph references to service are to redundancy qualifying service.

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

(3) 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

If TS exceeds 18, the result of step 1 is

where—

• F is final relevant earnings, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• RS is AFRS 2006 relevant service, and

• TS is total service.

(4) 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

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: long service commitment – leaves between EDP 2005 point and EDP 2015 point

26.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have reached age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service on or after reaching age 55 or becoming entitled to EDP 2005 payments, but before either reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

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

(3) The AFRS 2006 style payment is calculated as follows—

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

If R is less than 4,

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

where—

• RS is AFRS 2006 relevant service, and

• TS is total service.

(4) 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

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: long service commitment – leaves after EDP 2015 point

27.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have reached age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service on or after either reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

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

(3) 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

If R is less than 4, the result of step 1 is

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

Where—

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

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

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

If R is less than or equal to 4, the result of step 1 is

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

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: hybrid commitment – leaves before EDP 2005 point

28.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have reached age 55 or become entitled to EDP 2005 payments but would not have reached age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service before either reaching age 55 or becoming entitled to EDP 2005 payments,

and in this paragraph references to service are to redundancy qualifying service.

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

(3) 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

If TS exceeds 18, the result of step 1 is

where—

• F is final relevant earnings, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• RS is AFRS 2006 relevant service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: Take the lower of—

(a) 10.2% x F x TS, and

(b) (10.2% x F x R) + (10.2% x F)

where—

• F is final relevant earnings,

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

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: hybrid commitment – leaves between EDP 2005 point and EDP 2015 point

29.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would have reached age 55 or become entitled to EDP 2005 payments but who would not have reached age 60 or become entitled to EDP 2015 payments, and

(b) actually ceases service on or after either reaching age 55 or becoming entitled to EDP 2005 payments but before either reaching age 60 or becoming entitled to EDP 2015 payments,

and in this paragraph references to service are to redundancy qualifying service.

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

(3) 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

If R is less than 4, the result of step 1 is

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

where—

• RS is AFRS 2006 relevant service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: Take the lower of—

(a) 10.2% x F x TS, and

(b) (10.2% x F x R) + (10.2% x F)

where—

• F is final relevant earnings,

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

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.

Amount of payment: short service commitment

30.—(1) This paragraph applies to an eligible person who—

(a) had their service continued to the end of their commitment period, would not have reached age 55 or become entitled to EDP 2005 payments, and

(b) actually ceases service before either reaching age 55 or becoming entitled to EDP 2005 payments,

and in this paragraph references to service are to redundancy qualifying service.

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

(3) The AFRS 2006 style payment is calculated as follows—

Step 1: Take the lower of—

(a) , and

(b)

where—

• F is final relevant earnings, and

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• RS is AFRS 2006 relevant service, and

• TS is total service.

(4) The AFRS 2020 style payment is calculated as follows—

Step 1: Take the lower of—

(a) 10.2% x F x TS, and

(b) (10.2% x F x R) + (10.2% x F)

where—

• F is final relevant earnings,

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

• TS is total service.

Step 2: take the result of step 1 and multiply by

where—

• Q is redundancy qualifying service, and

• TS is total service.