The Armed Forces Pension Scheme Order 2005 No. 438

[F1 Schedule 3 U.K. Remediable Service

Textual Amendments

F1 Sch. 3 inserted (1.10.2023) by The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), reg. 1(b), Sch. 2

Part 8 U.K. Provision about special cases

Chapter 1 U.K. Child pensions in payment

Protection of the amount of pension payable to an eligible child U.K.

58.— (1) This paragraph applies where—

(a) a child pension is in payment to an eligible child (“E”) in respect of the remediable service of a deceased member (“M”),

(b) the eligible decision-maker specified in Part 10 makes an immediate choice decision or a deferred choice decision under the provisions of this Schedule or the Schedule to the EDP 2005 Order which would (disregarding this paragraph) result in a decrease in the rate of child pension payable to E in respect of M’s remediable service, and

(c) the eligible decision-maker does not live in the same household as E.

(2) Where this paragraph applies—

(a) E does not owe the Scheme manager a liability under section 14(3) of PSPJOA 2022 in respect of the child pension, and

(b) the rate of child pension continues to be the rate that was payable before the decision was made.

(3) For the purposes of this paragraph—

(a) a child’s pension means—

(i) a pension under rule E.8 of Schedule 1;

(ii) a pension under regulation 72 of the AFP Regulations 2014.

Chapter 2 U.K. Application of Schedule 2 (Transitional Provision for the AFPS 2005)

Calculation of Benefits for remediable service: election for new Scheme benefits U.K.

59.— (1) This paragraph applies where a section 6 election or a section 10 election is made or treated as made in relation to a remedy member’s (“M”) remediable service under the provisions of this Schedule or the Schedule to the EDP 2005 Order.

(2) For the purposes of calculating the benefits due to, or in respect of, M in relation to their remediable service, M is treated though they were a transition member with continuity of service within the meaning of paragraph 2 of Schedule 2.

(3) For these purposes—

(a) M’s transition date is taken to be 1st April 2015;

(b) the date on which M joined the AFPS 2015 is taken to be 1st April 2015, or if later, the date on which M first entered remediable service after that date;

(c) references to M’s pensionable service in the AFPS 2015 include M’s period of remediable service in the AFPS 2005;

(d) references to M’s reckonable service in the AFPS 2005 mean M’s reckonable service up to the end of 31st March 2015;

(e) where M died before 1st April 2022, references in the opening words of paragraphs 34, 35, 36 and 37 to M dying as a member of the AFPS 2015 include a case where M died as a member in pensionable service under the AFPS 2005 (whether or not by virtue of section 2(1) of PSPJOA 2022).

Chapter 3 U.K. Abatement

Abatement U.K.

60.— (1) This paragraph applies—

(a) where an immediate choice decision or deferred choice decision is made in a case where the remedy member (“M”) is, or has been, re-engaged in new service within the meaning of rule H.1 of Schedule 1,

(b) as a result of that decision, the amount of M’s pension in respect of their remediable service has changed, and

(c) M’s pension is abated under Part H of Schedule 1.

(2) The Scheme manager must—

(a) re-calculate the member’s old service pension, with effect from the date on which the member entered into the new service, and

(b) re-calculate the reduction amount under rule H.2.

(3) The pension which is reduced as a result of abatement does not include any amounts attributable to an immediate choice decision under paragraph 9(1)(a) or a deferred choice decision under paragraph 13(1)(a).

Chapter 4 U.K. Death Benefits Nomination

Nomination for Death Lump Sum Benefits U.K.

61.   Where a remedy member (“M”)—

(a) had made a nomination under regulation 84 of the AFP Regulations 2014 before 1st October 2023, and

(b) M did not subsequently make a nomination under rule E.21 of Schedule 1,

the nomination under regulation 84 of the AFP Regulations 2014 has effect as a nomination under rule E.21 of Schedule 1.

Chapter 5 U.K. Medical and Dental Officers: AFPS 2005 Bonus Scheme

MODO Bonus Scheme: effect of election for new Scheme benefits U.K.

62.— (1) Where a remedy member (“M”)—

(a) makes an immediate choice decision under paragraph 9(1)(a) or a deferred choice decision under paragraph 13(1)(a), and

(b) had made a claim under the MODO Bonus Scheme in relation to a period which included their remediable service,

M must repay that proportion of any bonus payment which relates to M’s remediable service (“the overpaid bonus”) to the Scheme manager.

(2) The overpaid bonus is a relevant amount for the purposes of section 26(1)(b) of PSPJOA 2022 and Part 9 of this Schedule applies accordingly.

(3) In this paragraph—

“2014 DIN” means the Defence Information Notice, reference 2014DIN01-143 setting out the terms on which the MODO Bonus Scheme was closed to members who transitioned to the AFPS 2015, and the basis on which accrued rights to the bonus for service before the transition date would be calculated;

“MODO Bonus Scheme” means the scheme set out in the directed letter of 30th March 2006, entitled “Medical and Dental Officer (MO/DO) Bonuses”, setting out details of a bonus scheme for medical and dental officers who were, or were eligible to be, in pensionable service under the AFPS 2005, and amended by the 2014 DIN.

Chapter 6 U.K. Scheme Pays

Payment of annual allowance tax charge and provision of information U.K.

63.   Where a remedy member is unable to give an effective notice to the Scheme manager under section 237B(3) of FA 2004 in relation to an in-scope tax year (within the meaning of direction 7(7) of the PSP Directions 2022) because the time limit in section 237BA(2) has passed, direction 7(2) to (6) of the PSP Directions 2022 applies in relation to the remedy member.]