The Armed Forces Pension Regulations 2014

CHAPTER 3 Active member’s account

Establishment of an active member’s account

29.  A pension account must be established for each active member (“the active member’s account”) from the person’s first day.

Receipt of transfer values

30.—(1) This regulation applies if a transfer value payment is received from another pension scheme (other than a connected scheme) in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member’s account must be credited with the amount of transferred pension calculated under regulation 109 (amount of transferred pension).

Receipt of club transfer values

31.—(1) This regulation applies if a club transfer value payment is received from another club scheme in relation to an active member of this scheme.

(2) On receipt of the club transfer value payment, the active member’s account must be credited with an amount of club transfer earned pension calculated under regulation 111 (amount of club transfer earned pension).

Account to specify amount of pension for a scheme year

32.—(1) This regulation applies to every scheme year in which an active member’s account is open.

(2) The active member’s account must specify, in relation to each description of pension, the amount of that pension for the scheme year.

(3) The amount of club transfer earned pension for a scheme year must be specified separately in relation to each sending scheme;

(4) The amount of earned pension for a scheme year is 1/47^th of the member’s pensionable earnings for that year.

(5) The amount of transferred pension for a scheme year is the amount which the member is entitled to count under regulation 109 (amount of transferred pension).

(6) The amount of club transfer earned pension for a scheme year is the amount which member is entitled to count under regulation 111 (amount of club transfer earned pension).

(7) The added pension (member) for a scheme year is the sum of the amounts a member is entitled to count under Chapter 1 of Part 7 (Contributions) after exercising an option under regulation 91(1)(a) (member’s option to make periodical contributions to purchase added pension).

(8) The added pension (member and dependants) for a scheme year is the sum of the amounts a member is entitled to count under Chapter 1 of Part 7 (Contributions) after exercising an option under regulation 91(1)(b) (member’s option to make periodical contributions to purchase added pension).

Account to specify opening balance and index adjustment

33.—(1) This regulation applies to every scheme year in which an active member’s account is open.

(2) The active member’s account must specify, for each description of pension, the opening balance for the scheme year and the index adjustment for the opening balance.

(3) In these Regulations, “opening balance” in relation to a description of pension—

(a) for the scheme year immediately following the scheme year in which the active member’s account is established, means the amount of that pension for the previous scheme year as at the end of the previous scheme year; and

(b) for any subsequent scheme year, means the sum of the following amounts—

(i) the opening balance of that pension for the previous scheme year and the index adjustment for that opening balance; and

(ii) the amount of that pension for the previous scheme year as at the end of the previous scheme year.