The Armed Forces Pension Regulations 2014

CHAPTER 4 Pensionable service

Pensionable service

21.—(1) A member is in pensionable service under this scheme in any period in respect of which the scheme member is—

(a) employed in scheme employment; and

(b) receiving pensionable earnings or assumed pay.

(2) For the purpose of Part 4 (Pensions Accounts), a member is treated as being in a continuous period of pensionable service under this scheme if—

(a) there is no gap in pensionable service; or

(b) any gap in pensionable service does not exceed 5 years.

Qualifying service

22.—(1) In these Regulations, a period of qualifying service is the aggregate of the following periods—

(a) any period on or after 1st April 2015, where the individual is an active member under regulation 16 (eligibility for active membership);

(b) if a transfer value payment or a cash transfer sum has been accepted under Part 8 (Transfers) in respect of rights accrued under another occupational pension scheme, a period equal to the person’s period as an active member in that scheme; and

(c) for a transition member with continuity of service, the person’s continuous period of pensionable service under a connected scheme on or before 31st March 2015.

(2) In paragraph (1)—

(a) a transition member has continuity of service unless the person has a gap in pensionable service exceeding 5 years which—

(i) begins on or before 31st March 2015; and

(ii) ends on the day the person becomes an active member of this scheme;

(b) a period of pensionable public service does not constitute a gap in service.

This is subject to paragraph (4).

(3) The following are not qualifying service—

(a) any pensionable service in respect of which a person’s rights under this scheme are extinguished;

(b) any pensionable service by a person under any connected scheme in respect of which the person’s rights under that scheme are extinguished;

(c) any period of service during which a person opts not to join this scheme;

(d) any service from the point when an active member opts out from this scheme until any future point when the member opts back in;

(e) any period of unauthorised absence from scheme employment;

(f) any period of unpaid leave in respect of which the person is not treated as receiving assumed pay;

(g) any period of service detention; and

(h) any period of imprisonment.

(4) Where a person ceases to be eligible for active membership under regulation 16 (eligibility for active membership) for a period of more than 5 years and subsequently rejoins, qualifying service re-starts from the first day of new service in scheme employment.

(5) In determining the period for which an individual ceases to be eligible under paragraph (4) any period where the member was in pensionable public service is to be disregarded.

Pensionable earnings

23.—(1) For the purpose of calculating a member’s pension or other benefits, the member’s pensionable earnings are—

(a) basic pay in the service by virtue of which the person is a member for a person of the member’s rank and seniority; and

(b) an other amount if, and to the extent that, the Secretary of State has determined that it is to be treated as pensionable earnings.

This is subject to paragraph (3).

(2) Accordingly, subject to paragraph (1)(b), “pensionable earnings” does not include—

(a) any allowances,

(b) any additional amounts payable in respect of particular qualifications or duties, the location of service or the conditions in which service is temporarily performed, or

(c) any additional amounts payable to medical or dental officers as such.

(3) “Pensionable earnings” does not include any description of payments that the Secretary of State has determined is not to be treated as pensionable earnings, unless it is expressly provided to the member on the basis that it is pensionable.

Meaning of “assumed pay”

24.—(1) For any period in which the circumstances specified in paragraph (2) apply to an active member of this scheme, a member is treated as receiving pay (“assumed pay”) equal to the pensionable earnings that the member would have received if those circumstances had not applied, with such increase, if any, as the scheme manager considers appropriate.

(2) The circumstances are that the member—

(a) is on secondment to a different employer under an arrangement providing for the member to continue to be an active member of this scheme in respect of the member’s service although the member is paid for that service by that employer;

(b) is on ordinary adoption leave, ordinary maternity leave, ordinary paternity leave or on paid additional paternity leave;

(c) is receiving statutory maternity pay; or

(d) is on unpaid leave for a period which the scheme manager has agreed can count for the purpose of this paragraph.