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SCHEDULE 1U.K.ARRANGEMENT OF RULESTHE ARMED FORCES PENSION SCHEME 2005

Commencement Information

I1Sch. 1 in force at 6.4.2005, see art. 1

PART AU.K.INTERPRETATION ETC.

A.1.    Interpretation: generalU.K.

(1) This Part applies for the interpretation of the Scheme.

(2) The rules of the Scheme are to be construed without reference to any other scheme applicable to the armed forces (except where they refer to the application of another such scheme).

(3) Without prejudice to section 23 of the Interpretation Act 1978(1), that Act applies for the interpretation of the rules of the Scheme as it applies to an Act of Parliament.

(4) In the rules of the Scheme, unless the context otherwise requires, the following expressions have the following meanings—

“active member” has the meaning given in section 124(1) of the Pensions Act 1995 and, except where the context otherwise requires, refers to membership of the Scheme, (but see paragraphs (5) and (6));

“active membership period” is to be read in accordance with rule A.6;

F1...

“the AFPS 1975” means the occupational pension scheme arrangements, other than the Scheme, that are open to members of the armed forces and set out in—

(a)

Orders in Council made under section 3 of the Naval and Marine Pay and Pensions Act 1865(2),

(b)

the Army Pensions Warrant 1977(3), and

(c)

Orders and regulations made under section 2 of the Air Force (Constitution) Act 1917(4),

or any instrument amending or replacing any of those instruments;

“AFPS 1975 transferee” has the meaning given in rule K.1(2);

[F2“AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014;]

[F3“AFRS 2020” means the Scheme established by the Armed Forces Redundancy Scheme Order 2020;]

“assumed pay” has the meaning given by rule A.3(1);

“contributions equivalent premium” has the same meaning as in the Pension Schemes Act 1993 (see section 55(2)(5));

“deferred member” has the meaning given in section 124(1) of the Pensions Act 1995 and, except where the context requires otherwise, refers to membership of the Scheme, (but see paragraph (5));

“eligible child” has the meaning given in rule E.9;

“employment” includes an office or appointment, and related expressions are to be read accordingly;

“final pensionable earnings” has the meaning given in rule A.4;

[F4“fixed protection member” has the meaning given in rule B.6;]

[F5“flexible service” means one or both of the following types of service—

(a)

part-time service;

(b)

restricted separation service,

and references to a member serving on flexible terms must be construed accordingly;]

[F6“gratuity-earning service” means service on a short service commission on terms providing that the person serving is not eligible to be a member of this Scheme or the AFPS 1975, but will be eligible for the payment of a gratuity on leaving service, subject to the satisfactory completion of that person’s service;]

“the guarantee date” has the meaning given in rule F.2(2);

“the guaranteed cash equivalent transfer value payment” has the meaning given in rule F.3(2);

“guaranteed minimum” means the guaranteed minimum as defined in sections 14 and 17 of the Pension Schemes Act 1993(6) (minimum pensions for earners, widows and widowers)—

(a)

as increased in accordance with the requirements of section 109 of that Act(7) (annual increase of minimum pensions), and

(b)

in a case where a reduction has been made under section 15A of that Act(8) (reduction of guaranteed minimum in consequence of pension debit), as reduced in accordance with that section;

[F7“Gurkha Pension Scheme transferee” has the meaning given in rule L.1(3);]

“member”, in relation to the Scheme, means an active member, a deferred member, [F8a fixed protection member,] a pensioner member or a pension credit member;

“occupational pension scheme” has the meaning given in section 1 of the Pension Schemes Act 1993;

“ordinary adoption leave” means leave which, in the opinion of the Secretary of State, corresponds to ordinary adoption leave within the meaning of section 75A of the Employment Rights Act 1996(9);

“ordinary maternity leave” means leave which, in the opinion of the Secretary of State, corresponds—

(a)

in relation to any period before 22nd August 1996, to leave under section 33 of the Employment Protection (Consolidation) Act 1978(10), and

(b)

in relation to any period after 21st August 1996, to leave under section 71 of the Employment Rights Act 1996;

[F5“part-time service” means—

(a)

for enlisted members, a period of service where the member is serving in accordance with an arrangement provided for in regulations made under section 329(2)(ha) of the Armed Forces Act 2006;

(b)

for members who are officers, a period of service on equivalent terms of service;]

[F9“F10... paternity leave” means leave which, in the opinion of the Secretary of State, corresponds to paternity leave within the meaning of regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002;]

F11...

“pay period”, in relation to a person, means a period by reference to which the person’s earnings in the service by virtue of which he is eligible for membership of the Scheme are payable;

“pensionable earnings” has the meaning given in rule A.2;

“pension age” means the age of 55;

“pension benefit age” means the age of 65;

“pension credit” has the meaning given in section 124(1) of the Pensions Act 1995(11);

“pension credit member” has the meaning given in section 124(1) of the Pensions Act 1995(12);

“pension credit rights” has the meaning given in section 124(1) of the Pensions Act 1995(13);

“pension debit” means a debit under section 29(1)(a) of the Welfare Reform and Pensions Act 1999(14);

“pension debit member” means a member of the Scheme whose benefits or future benefits under the Scheme have been reduced under section 31 of the Welfare Reform and Pensions Act 1999 (reduction under pension sharing order following divorce or nullity of marriage), whether before or after he became a member of the Scheme;

“pensioner member” has the meaning given in section 124(1) of the Pensions Act 1995 and, except where the context otherwise requires, refers to membership of the Scheme (but see paragraphs (6) and (7));

“pension sharing order” means any provision or order specified in section 28 of the Welfare Reform and Pensions Act 1999;

“personal pension scheme” means a personal pension scheme within the meaning of section 1 of the Pension Schemes Act 1993 which [F12is registered under section 153 of the Finance Act 2004 (registration of pension schemes)];

[F3“PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022;]

“public sector transfer arrangements” means arrangements recognised by the Secretary of State as providing reciprocal arrangements for the payment and receipt of transfer values between the Scheme and other occupational pension schemes;

“qualifying service” is to be read in accordance with rule A.7;

“reckonable service” is to be read in accordance with rule A.8;

“re-employed active member” has the meaning given by rule G.1(3);

[F3“remediable service” has the meaning given in section 1 of PSPJOA 2022, and refers to service in an employment or office that is pensionable service under the Scheme, whether or not by virtue of section 2(1) of PSPJOA 2022;]

[F3“remedy member” means a member with remediable service;]

“the Reserve Forces Pension Scheme” means the occupational pension scheme established by regulations made by the Defence Council, in exercise of the powers conferred on them by sections 4(2) and 8(1)(a) of the Reserve Forces Act 1996(15);

[F5“restricted separation service” means—

(a)

for enlisted members, a period of service where the member is serving in accordance with an arrangement which does not restrict the member’s service in a particular area but does make it subject to other geographic restrictions provided for in regulations made under section 329(2)(i) of the Armed Forces Act 2006;

(b)

for members who are officers, a period of service on equivalent terms of service;]

F13...

“the Scheme” means the Armed Forces Pension Scheme 2005;

“the Scheme actuary” means the actuary appointed by the Secretary of State for the time being to provide a consulting service on actuarial matters relevant to the Scheme;

“the Scheme administrator”, in relation to a member or a function, means the person responsible for the day to day administration of the Scheme in relation to the member or in respect of the function;

[F3“Scheme manager” means the Secretary of State;]

“the Scheme medical adviser” means the medical adviser appointed by the Secretary of State for the time being to provide a consulting service on medical matters relevant to the Scheme;

[F5“service reduction percentage” has the meaning given in rule A.2A;]

[F14“shared parental leave” means leave under section 75E or 75G of the Employment Rights Act 1996 [F15, or Articles 107E or 107G of the Employment Rights (Northern Ireland) Order 1996.];]

“tax year” means a year of assessment for income tax purposes;

“these Rules” means the rules of the Scheme set out in this Schedule;

“stakeholder pension scheme” means a scheme which is a stakeholder pension scheme for the purposes of Part 1 of the Welfare Reform and Pensions Act 1999 (see section 1 of that Act(16));

“state pension age” means pensionable age, as defined in section 181(1) of the Pension Schemes Act 1993(17);

“weekly rate”, in relation to a guaranteed minimum pension, has the same meaning as in regulation 55(1) of the Occupational Pension Schemes (Contracting-out) Regulations 1996(18).

(5) In determining whether a person who is an active member or a pensioner member of the Scheme is also a deferred member of it, the fact that he is an active member or a pensioner member and his rights as such are to be disregarded.

(6) In determining whether a person who is an active member of the Scheme is also a pensioner member of it, the fact that he is an active member and his rights as such are to be disregarded.

(7) In determining whether a person is a pensioner member of the Scheme, the fact that he is not entitled to payment of pension because of Part H (abatement) is to be disregarded.

Textual Amendments

(2)

1865 c. 73; section 3 was amended by the Armed Forces (Pensions and Compensation) Act 2004, section 4.

(3)

which is available from Her Majesty’s Stationery Office.

(5)

Subsection (2) was inserted in section 55 by section 141(1) of the Pensions Act 1995 (c. 26).

(6)

1993 c. 48. Section 17 is amended by paragraph 1 of Schedule 5 to the Child Support, Pensions and Social Security Act 2000 (c. 19).

(7)

Section 109 is amended by section 55 of the Pensions Act 1995 (c. 26).

(8)

Section 15A is inserted by section 32(3) of the Welfare Reform and Pensions Act 1999 (c. 30).

(9)

1996 c. 18. Section 75A is inserted by section 3 of the Employment Act 2002 (c. 22).

(11)

The definition of “pension credit” was inserted in section 124(1) by paragraph 61 of Schedule 12 to the Welfare Reform and Pensions Act 1999 (c. 30).

(12)

The definition of “pension credit member” was inserted in section 124(1) by paragraph 61 of Schedule 12 to the Welfare Reform and Pensions Act 1999 (c. 30).

(13)

The definition of “pension credit rights” was inserted in section 124(1) by paragraph 61 of Schedule 12 to the Welfare Reform and Pensions Act 1999 (c. 30).

(16)

Section 1 is amended by section 285 of the Pensions Act 2004 (c. 35).

(17)

The definition of “pensionable age” is inserted by paragraph 17 of Schedule 4 to the Pensions Act 1995 (c. 26).

(18)

S.I. 1996/1172. Regulation 55(1) is amended by regulation 4(11) of S.I. 1997/786.