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The Armed Forces Pension Scheme Order 2005

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  1. Introductory Text

  2. Preliminary

    1. 1.Citation and commencement and interpretation

    2. 2.Establishment of the Armed Forces Pension Scheme 2005

    3. 3.Amendments of the Armed Forces Pension Scheme 2005

    4. 4.Amendments of other regulations

  3. Signature

    1. SCHEDULE 1

      ARRANGEMENT OF RULES

      1. PART A INTERPRETATION ETC.

        1. A.1.Interpretation: general

        2. A.2.Meaning of “pensionable earnings”

        3. A.3.Meaning of “assumed pay”

        4. A.4.Meaning of “final pensionable earnings”

        5. A.5.Adjustments for inflation in determining final pensionable earnings

        6. A.6.Active membership period

        7. A.7.Qualifying service

        8. A.8.Reckonable service

        9. A.9.Calculation of periods of membership or service etc.

        10. A.10.Disregard of short breaks in service

      2. PART B MEMBERSHIP

        1. B.1.Eligibility: general

        2. B.2.Persons with other pension arrangements

        3. B.3.Joining the Scheme on starting service

        4. B.4.Joining the Scheme after service begins

        5. B.5.Leaving the Scheme

      3. PART C CONTRIBUTIONS

        1. Buying Added Years

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

          2. C.2.Cancellation of options

          3. C.3.Effect of making contributions

          4. C.4.Absence from work

          5. C.5.Restriction on pension debit members making contributions

          6. C.6.Purchase of added years for members seconded to NATO or...

        2. Repayment of Contributions

          1. C.7.Repayment of contributions

      4. PART D RETIREMENT BENEFITS

        1. Entitlement To Benefits

          1. D.1.Retirement after reaching pension age

          2. D.2.Retirement before reaching pension age

          3. D.3.Pension credit members' pensions

          4. D.4.Early payment of pensions with actuarial reduction

          5. D.5.Early payment of benefits: active members with permanent serious ill-health...

          6. D.6.Early payment of benefits: active members with significant impairment of...

          7. D.7.Early payment of benefits: deferred members with permanent serious ill-health...

          8. D.8.Member’s requests for review of ill-health awards

          9. D.9.Secretary of State’s power to review ill-health awards

        2. Options to Change Benefits

          1. D.10.Option to exchange lump sum for pension

          2. D.11.Option for members in serious ill-health to exchange whole pension...

        3. Pension Debit Members and Pension Credit Members

          1. D.12.Reduction in pension debit member’s benefits

          2. D.13.Pension credit member’s rights

        4. Allocation

          1. D.14.Election to allocate pension

          2. D.15.Procedure for election under rule D.14

          3. D.16.Effect of allocation

        5. Contracting-out Obligations (GMPs etc.)

          1. D.17.Guaranteed minimum pensions etc.

      5. PART E DEATH BENEFITS

        1. Pensions for Adult Dependants

          1. E.1.Surviving spouses' and civil partners' pensions

          2. E.2.Other adult dependants' pensions

          3. E.3.Amount of pensions under rules E.1 and E.2: active members...

          4. E.4.Amount of pensions under rules E.1 and E.2: deferred members...

          5. E.5.Amount of pensions under rules E.1 and E.2: pensioner members...

          6. E.6.Reduction in pensions under rules E.1 and E.2 in cases...

          7. E.7.Adult dependants entitled to two or more pensions under this...

        2. Pensions for Eligible Children

          1. E.8.Surviving children’s pensions

          2. E.9.Meaning of “eligible child”

          3. E.10.Amount of children’s pension under rule E.8: active members

          4. E.11.Amount of children’s pension under rule E.8: deferred members

          5. E.12.Amount of children’s pension under rule E.8: pensioner members

          6. E.13.Children born after the member’s death

          7. E.14.Children entitled to three or more pensions

        3. Lump Sum Death Benefits

          1. E.15.Death of a member: lump sum benefit

          2. E.16.Amount of lump sum benefit under rule E.15: active members...

          3. E.17.Amount of lump sum benefit under rule E.15: deferred members...

          4. E.18.Amount of lump sum benefit under rule E.15: pensioner members...

          5. E.19.Amount of lump sum benefit under rule E.15: pension credit...

          6. E.20.Members affected by court orders to former spouses and civil...

          7. E.21.Nominations for lump sum death benefits

        4. General Provisions

          1. E.22.Pension debit members

          2. E.23.Dependants' pensions: suspension and recovery

          3. E.24.Recovery of lump sum payments made to nominee

          4. E.25.Provisional awards of children’s pensions: later adjustments

          5. E.26.Payments under this Part

          6. E.27.Dual capacity membership

          7. E.28.Guaranteed minimum pensions for surviving spouses

      6. PART F TRANSFERS

        1. Transfers Out

          1. F.1.Right to transfer value payment

          2. F.2.Applications for statements of entitlement

          3. F.3.Applications for transfer value payments

          4. F.4.Ways in which transfer value payments may be applied

          5. F.5.Calculating amounts of transfer value payments

          6. F.6.Effect of transfers-out

        2. Transfers In

          1. F.7.Right to apply for acceptance of transfer value payment from...

          2. F.8.Procedure for applications under rule F.7

          3. F.9.Acceptance of transfer value payments

          4. F.10.Calculation of transferred-in reckonable service

        3. Miscellaneous Provisions

          1. F.11.Public sector transfer arrangements

      7. PART G RE-EMPLOYMENT

        1. Preliminary

          1. G.1.Application of Part G

        2. Treatment of Separate Periods of Service: Options to Aggregate

          1. G.2.General rule: periods of service treated separately

          2. G.3.Option to aggregate earlier membership: previous members of the Scheme...

          3. G.4.Option to aggregate earlier membership: previous members of the AFPS...

          4. G.5.Procedure for exercising options under rules G.3 and G.4

          5. G.6.Application of rule G.3 to members who opted to leave...

          6. G.7.Re-employment after ill-health awards

      8. PART H ABATEMENT

        1. H.1.Application of Part H

        2. H.2.Abatement of pensions on re-employment: general rules

        3. H.3.Abatement of pensions: effect of changes after re-employment

        4. H.4.Special rule about annual rate of pay in old service...

        5. H.5.Adjustment of basic pay in old service

        6. H.6.General disregard of effect of abatement

      9. PART J MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

        1. Claims for and Payment of Benefits

          1. J.1.Claims for and payment of benefits

          2. J.2.False statements etc. about ill-health

          3. J.3.Non-assignability

        2. Pension Credit Members with Two or more Pension Credits

          1. J.4.Pension credit members with two or more entitlements

        3. Forfeiture

          1. J.5.Forfeiture of benefits

          2. J.6.Events enabling forfeiture

          3. J.7.Procedure, references etc.

        4. Commutation of Small Pensions

          1. J.8.Commutation of small pensions

        5. Determination of Questions

          1. J.9.Determination of questions

        6. Information, Evidence, Suspension etc.

          1. J.10.Information and evidence

      10. PART K AFPS 1975 TRANSFEREES

        1. Preliminary

          1. K.1.Application of Part K: meaning of “AFPS 1975 transferee”

          2. K.2.Options for AFPS 1975 members to join the Scheme under...

        2. Transfer of Service from the AFPS 1975

          1. K.3.Service credited from the AFPS 1975

          2. K.4.Treatment of added years: contributions paid before 6th April 2006...

          3. K.5.Treatment of preserved awards

          4. K.6.Transfers in: transitional provision

          5. K.7.Pension debit members

          6. K.8.Disapplication of rule E.6

      11. PART A INTERPRETATION ETC.

        1. A.1.Interpretation: general

        2. A.2.Meaning of “pensionable earnings”

        3. A.3.Meaning of “assumed pay”

        4. A.4.Meaning of “final pensionable earnings”

        5. A.5.Adjustments for inflation in determining final pensionable earnings

        6. A.6.Active membership period

        7. A.7.Qualifying service

        8. A.8.Reckonable service

        9. A.9.Calculation of periods of membership or service etc

        10. A.10.Disregard of short breaks in service

      12. PART B MEMBERSHIP

        1. B.1.Eligibility: general

        2. B.2.Persons with other pension arrangements

        3. B.3.Joining the Scheme on starting service

        4. B.4.Joining the Scheme after service begins

        5. B.5.Leaving the Scheme

      13. PART C CONTRIBUTIONS

        1. Buying Added Years

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

          2. C.2.Cancellation of options

          3. C.3.Effect of making contributions

          4. C.4.Absence from work

          5. C.5.Restriction on pension debit members making contributions

          6. C.6.Purchase of added years for members seconded to NATO or the UN etc

        2. Repayment of Contributions

          1. C.7.Repayment of contributions

      14. PART D RETIREMENT BENEFITS

        1. Entitlement to Benefits

          1. D.1.Retirement after reaching pension age

          2. D.2.Retirement before reaching pension age

          3. D.3.Pension credit members' pensions

          4. D.4.Early payment of pensions with actuarial reduction

          5. D.5.Early payment of benefits: active members with permanent serious ill-health

          6. D.6.Early payment of benefits: active members with significant impairment of capacity for gainful employment

          7. D.7.Early payment of benefits: deferred members with permanent serious ill-health

          8. D.8.Member’s requests for review of ill-health awards

          9. D.9.Secretary of State’s power to review ill-health awards

        2. Options to Change Benefits

          1. D.10.Option to exchange lump sum for pension

          2. D.11.Option for members in serious ill-health to exchange whole pension for lump sum

        3. Pension Debit Members and Pension Credit Members

          1. D.12.Reduction in pension debit member’s benefits

          2. D.13.Pension credit member’s rights

        4. Allocation

          1. D.14.Election to allocate pension

          2. D.15.Procedure for election under rule D.14

          3. D.16.Effect of allocation

        5. Contracting-out Obligations (GMPs etc.)

          1. D.17.Guaranteed minimum pensions etc

      15. PART E DEATH BENEFITS

        1. Pensions for Adult Dependants

          1. E.1.Surviving spouses' and civil partners' pensions

          2. E.2.Other adult dependants' pensions

          3. E.3.Amount of pensions under rules E.1 and E.2: active members

          4. E.4.Amount of pensions under rules E.1 and E.2: deferred members

          5. E.5.Amount of pensions under rules E.1 and E.2: pensioner members

          6. E.6.Reduction in pensions under rules E.1 and E.2 in cases of wide age disparity

          7. E.7.Adult dependants entitled to two or more pensions under this Part

        2. Pensions for Eligible Children

          1. E.8.Surviving children’s pensions

          2. E.9.Meaning of “eligible child”

          3. E.10.Amount of children’s pension under rule E.8: active members

          4. E.11.Amount of children’s pension under rule E.8: deferred members

          5. E.12.Amount of children’s pension under rule E.8: pensioner members

          6. E.13.Children born after the member’s death

          7. E.14.Children entitled to three or more pensions

        3. Lump Sum Death Benefits

          1. E.15.Death of a member: lump sum benefit

          2. E.16.Amount of lump sum benefit under rule E.15: active members

          3. E.17.Amount of lump sum benefit under rule E.15: deferred members

          4. E.18.Amount of lump sum benefit under rule E.15: pensioner members

          5. E.19.Amount of lump sum benefit under rule E.15: pension credit members

          6. E.20.Members affected by court orders to former spouses and civil partners on death

          7. E.21.Nominations for lump sum death benefits

        4. General Provisions

          1. E.22.Pension debit members

          2. E.23.Dependants' pensions: suspension and recovery

          3. E.24.Recovery of lump sum payments made to nominee

          4. E.25.Provisional awards of children’s pensions: later adjustments

          5. E.26.Payments under this Part

          6. E.27.Dual capacity membership

          7. E.28.Guaranteed minimum pensions for surviving spouses

      16. PART F TRANSFERS

        1. Transfers Out

          1. F.1.Right to transfer value payment

          2. F.2.Applications for statements of entitlement

          3. F.3.Applications for transfer value payments

          4. F.4.Ways in which transfer value payments may be applied

          5. F.5.Calculating amounts of transfer value payments

          6. F.6.Effect of transfers-out

        2. Transfers In

          1. F.7.Right to apply for acceptance of transfer value payment from another scheme

          2. F.8.Procedure for applications under rule F.7

          3. F.9.Acceptance of transfer value payments

          4. F.10.Calculation of transferred-in reckonable service

        3. Miscellaneous Provisions

          1. F.11.Public sector transfer arrangements

      17. PART G RE-EMPLOYMENT

        1. Preliminary

          1. G.1.Application of Part G

        2. Treatment of Separate Periods of Service: Options to Aggregate

          1. G.2.General rule: periods of service treated separately

          2. G.3.Option to aggregate earlier membership: previous members of the Scheme

          3. G.4.Option to aggregate earlier membership: previous members of the AFPS 1975

          4. G.5.Procedure for exercising options under rules G.3 and G.4

          5. G.6.Application of rule G.3 to members who opted to leave Scheme

          6. G.7.Re-employment after ill-health awards

      18. PART H ABATEMENT

        1. H.1.Application of Part H

        2. H.2.Abatement of pensions on re-employment: general rules

        3. H.3.Abatement of pensions: effect of changes after re-employment

        4. H.4.Special rule about annual rate of pay in old service in cases of entitlement to two or more pensions

        5. H.5.Adjustment of basic pay in old service

        6. H.6.General disregard of effect of abatement

      19. PART J MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

        1. Claims for and Payment of Benefits

          1. J.1.Claims for and payment of benefits

          2. J.2.False statements etc. about ill-health

          3. J.3.Non-assignability

        2. Pension Credit Members with two or more Pension Credits

          1. J.4.Pension credit members with two or more entitlements

        3. Forfeiture

          1. J.5.Forfeiture of benefits

          2. J.6.Events enabling forfeiture

          3. J.7.Procedure, references etc

        4. Commutation of Small Pensions

          1. J.8.Commutation of small pensions

        5. Determination of Questions

          1. J.9.Determination of questions

        6. Information, Evidence, Suspension etc.

          1. J.10.Information and evidence

      20. PART K AFPS 1975 TRANSFEREES

        1. Preliminary

          1. K.1.Application of Part K: meaning of “AFPS 1975 transferee”

          2. K.2.Options for AFPS 1975 members to join the Scheme under Part K

        2. Transfer of Service from the AFPS 1975

          1. K.3.Service credited from the AFPS 1975

          2. K.4.Treatment of added years: contributions paid before 6th April 2006

          3. K.5.Treatment of preserved awards

          4. K.6.Transfers in: transitional provision

          5. K.7.Pension debit members

          6. K.8.Disapplication of rule E.6

    2. SCHEDULE 2

      TEMPORARY MODIFICATIONS OF THE ARMED FORCES PENSION SCHEME 2005

      1. 1.At the end of rule A.4 insert—

      2. 2.At the end of rule A.5 insert—

      3. 3.After rule A.5 insert— Inland Revenue restrictions on final pensionable...

      4. 4.For rule B.2 substitute— Persons with other pension arrangements (1) A person is not eligible to be an active...

      5. 5.In rule C.1 after paragraph (7) insert—

      6. 6.In rule C.3(2)(b) after “C.1(6)” insert “or C.8”.

      7. 7.At the end of rule C.4(3) insert— This is subject...

      8. 8.For rule C.7 substitute— Repayment of contributions (1) The contributions made by a member under this Part...

      9. 9.After rule C.7 insert— Inland Revenue limits on contributions The contributions made under this Part in any tax year...

      10. 10.In rule D.11 after paragraph (5) insert—

      11. 11.After rule D.17 insert— Inland Revenue limits on lump sums...

      12. 12.(1) Rule E.16 is amended as follows—

      13. 13.In rule E.22 after paragraph (6) insert—

      14. 14.After rule E.28 insert— Inland Revenue limits: pensions (1) No annual pension payable under this Part may exceed...

      15. 15.(1) Rule J.8 is amended as follows—

  4. Explanatory Note

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