The Armed Forces Pension Scheme 2005 (Amendment) Order 2011

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the rules of the Armed Forces Pension Scheme 2005 (“the Scheme”). In this Explanatory Note “the 1993 Act” means the Pension Schemes Act 1993 c. 48 and “the 1999 Act” means the Welfare Reform and Pensions Act 1999 c. 30. References to a rule are to a rule of the Scheme.

Articles 2(2) and 2(3) amend rule A to reflect the fact that there are now two types of paternity leave, being ordinary paternity leave and additional paternity leave. The amendments mean that paid additional paternity leave counts towards assumed pay.

Article 2(4) amends rule D.2 to enable a member to retire up to 3 months before reaching pension age (55) in order to take up a job in civilian employment or to undertake a course of full time education or a training course and to receive the pension and lump sum on attaining the pension age.

Article 2(5) amends rule D.3(3) to provide that the pension and lump sum become payable immediately on the pension credit member reaching pension benefit age (65) or, if it is later, when the pension sharing order under which the member is entitled to the pension credit takes effect. Previously the rule provided for that to be the case where the pension sharing order was made before 6 April 2009, but where the pension sharing order was made after that date the rule provided that the pension and lump sum became payable immediately on the pension credit member reaching pension age (55) or, if it was later, when the relevant pension sharing order took effect. This change is necessary in order to comply with section 101C of the 1993 Act.

Article 2(6) inserts an additional paragraph after rule D3(5). This is necessary to comply with the 1999 Act, Schedule 5 paragraph 5(b) and the Pension Sharing (Pension Credit Benefit) Regulations 2000 (S.I.2000/1054) which concern the calculation of the value of rights for a pension credit member.

Articles 2(7) and 2(8) amend rule D.4. Article 2(7) makes an amendment consequential upon the amendment made by article 2(5). Article 2(8) amends rule D4(3) to provide that a pension credit member may opt for early payment of a pension and lump sum on reaching pension age (55) but on actuarially reduced terms. This change is also necessary to comply with section 101C of the 1993 Act.

Article 2(9) amends the definition of “eligible child” in rule E.9.

Article 2(10) amends rule E.15(1) to enable, on the death of a member, a surviving spouse, civil partner or adult dependant to be paid a lump sum in circumstances where the member would not have qualified for a pension if his service had ceased otherwise than by reason of death.

Article 2(11) amends rule F.8(1)(c) so that a member will not be able to transfer in benefits into the Scheme after they have reached pension age (55).