The Armed Forces Pension Scheme Order 2005

8.  For rule C.7 substitute—

C.7.    Repayment of contributions

(1) The contributions made by a member under this Part are not repayable in any circumstances except where paragraph (2) or (4) applies.

(2) This paragraph applies where—

(a) an active member who is not a pensioner member ceases to be an active member of the Scheme and is not entitled to the immediate payment of a pension,

(b) he does not fall within rule D.2(1)(a) or (b), and

(c) he has not required a payment to be made in respect of him under Part F (transfers).

(3) Where paragraph (2) applies, the former member is entitled to be paid an amount equal to the sum of the contributions made by him under this Part, less—

(a) the amount of any contributions equivalent premium paid in respect of the member, and

(b) an amount equal to the income tax payable under section 598(2) of the Income and Corporation Taxes Act 1988 by virtue of the repayment.

(4) This paragraph applies where the contributions paid by a member under rule C.1 exceed those which may be paid.

(5) Where paragraph (4) applies, the member is entitled to be paid an amount equal to the excess, less an amount equal to the income tax payable under section 599A of the Income and Corporation Taxes Act 1988 by virtue of the repayment, together with compound interest.

(6) In this rule “compound interest” means interest at the sterling 3 month London interbank offered rate, with yearly rests.”.