The Armed Forces Pension Scheme Order 2005

Allocation U.K.

D.14.    Election to allocate pension U.K.

(1) An active member or deferred member may elect to allocate a part of the member’s annual pension under the Scheme to the member’s spouse or civil partner or a person who in the opinion of the Secretary of State meets one of the conditions specified in paragraph (2).

(2) The conditions are—

(a) that the person is financially wholly or mainly dependent on the member, or

(b) that the member and the person are financially interdependent.

(3) But no election may be made in respect of a pension payable under rule D.5, D.6 or D.7.

(4) The member may not elect to allocate more than [F1 the permitted percentage] of the member’s annual pension (before any exercise of the option under rule D.10: option to exchange lump sum for pension).

[F2 (4A) In paragraph (4) “the permitted percentage” means 37.5% or such lower percentage as appears to the Scheme administrator to be capable of being allocated under this rule without risking that a part of the pension to which any person becomes entitled on the death of the member after 75 does not qualify as a dependants' scheme pension for the purposes of section 167 of the Finance Act 2004 (the pension death benefit rules) (see paragraphs 16 to 16B of Schedule 28 to that Act).]

(5) If a member wishes to allocate pension to two or more persons—

(a) he must make a separate election in respect of each of the persons, and

(b) the limit under paragraph (4) applies to the aggregate amount allocated.

(6) If the member is entitled to a guaranteed minimum pension, the member may not elect to allocate more than the amount by which the member’s annual pension (before any exercise of the option under rule D.10) exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the Scheme actuary.

(7) If—

(a) an election does not comply with paragraph (4) or (6), or

(b) taken together the member’s elections do not so comply,

the Scheme administrator may treat the election or, as the case may be, each of the elections, as allocating such smaller amount as would result in the election, or the elections taken together, so complying.

Textual Amendments

F1 Words in Sch. 1 rule D.14(4) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 8(1)

F2 Sch. 1 rule D.14(4A) inserted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 8(2)

D.15.    Procedure for election under rule D.14 U.K.

(1) An election under rule D.14 may only be made on or before the date advised to the member by the Scheme administrator (“the closing date”).

(2) A member may at any time on or before the closing date—

(a) revoke an election under that rule, or

(b) amend such an election by altering the amount allocated by it.

(3) An election under that rule and any revocation or amendment of such an election must be made in writing in such form as the Secretary of State requires and be lodged with the Scheme administrator.

(4) Subject to paragraphs (5) and (6), an election under rule D.14 takes effect on the closing date.

(5) The election has no effect if—

(a) the member dies before that date,

(b) it is in favour of a person who dies before that date, or

(c) the Secretary of State is not satisfied that at the time when the election is made that person is a person within rule D.14(1).

(6) The election has no effect unless—

(a) before the closing date the member has made a declaration about the state of his health in such form and, if required, has provided such evidence relating to his health, as the Secretary of State has requested, and

(b) F3 ... the Secretary of State is satisfied that at the date on which the member makes the declaration the member is in good health.

Textual Amendments

F3 Words in Sch. 1 rule D.15(6)(b) revoked (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 6(3)(d), Sch.

D.16.    Effect of allocation U.K.

(1) Where an election under rule D.14 for the allocation of a member’s pension to another person (“the beneficiary”) has taken effect—

(a) the member’s pension is reduced accordingly (even if the beneficiary predeceases the member), and

(b) if the beneficiary survives the member, on the member’s death the beneficiary becomes entitled to the payment of a pension for life of such amount as the Secretary of State may determine, after consultation with the Scheme actuary, having regard—

(i) to the amount of the allocation to the beneficiary, and

(ii) to the beneficiary’s age and sex.

(2) But the Secretary of State may withhold payment from the beneficiary if paragraph (3), (4) or (5) applies.

(3) This paragraph applies if—

(a) the member dies before the expiry of the period of two years beginning with the date on which the election takes effect, and

(b) the Secretary of State is satisfied that the member made a false declaration about the state of his health in connection with making the election.

(4) This paragraph applies if the Secretary of State is of the opinion that the member made the election under duress.

(5) This paragraph applies if the Secretary of State is of the opinion that the member was mentally impaired at the time when he made the election and would not have made the election apart from the impairment.

(6) If the Secretary of State proposes to withhold payment under paragraph (2), he must notify the person in writing that he proposes to do so.

(7) Such a notification must give the person information about rights under—

(a) the arrangements established by the Secretary of State for the resolution of disputes relating to the Scheme that are in force at the time the notification is given, and

(b) Part 10 of the Pension Schemes Act 1993(1) (investigations: the Pensions Ombudsman),

in respect of any decision made under paragraph (2).

(8) References in these Rules to pensions under this Part do not include pensions under this rule.

(1)

1993 c. 48.