The Armed Forces Redundancy Scheme Order 2006

Amount of payment under article 5: leavers with short service commitments

7.—(1) This article applies if, had the service of a person entitled to a payment under article 5 continued until the end of his commitment period, at the end of that period he would neither—

(a) have been entitled to payments under article 9 of the EDP Order (entitlement to early departure payments), nor

(b) have attained the age of 55.

(2) The amount of the lump sum payable to the person under article 5 is equal to the lower of—

(a) one eighth of his final relevant earnings, multiplied by NRS, and

(b) the sum of—

(i) one eighth of his final relevant earnings, multiplied by NY, and

(ii) one eighth of his final relevant earnings.

(3) For the purposes of paragraph (2)—

(a) NRS is the number of years of relevant service the person is entitled to count when his service ceases, and

(b) NY is the number of years of service that he would have served after the time when his service ceases had he continued to serve until the end of his commitment period.

(4) This article is subject to articles 8 to 10.