The Armed Forces Pensions (Remediable Service) Regulations 2023

Explanatory Note

(This note is not part of the Regulations)

The Public Service Pensions Act 2013 (c. 25) (“PSPA 2013”) makes provision, and confers powers to make further provision (in the form of “Scheme regulations” as defined in section 1 of PSPA 2013), about the establishment of public service pension schemes. The Armed Forces Pensions Regulations 2014 (S.I. 2014/2336) (“the 2015 Regulations”) are the scheme regulations establishing the successor pension scheme (“the reformed scheme”) to six pre-2015 legacy pension schemes for members of the armed forces with effect from 1st April 2015. The Armed Forces (Transitional Provisions) Pensions Regulations 2015 (S.I. 2015/568) amended the relevant legacy pension schemes and provided for transitional protection for certain cohorts of legacy scheme members. Transitional protection of this sort was subsequently found to unlawfully discriminate between legacy scheme members on the basis of age.

The Public Service Pensions and Judicial Offices Act 2022 (c. 7) (“PSPJOA 2022”), at Chapter 1, makes provision, and confers powers for scheme regulations under PSPA 2013 to make further provision, in relation to specified service (“remediable service” as defined in section 1 of PSPJOA 2022) of members who benefited from transitional protection, and of members who did not benefit from transitional protection only by reason of their age. Section 22 of PSPJOA 2022 makes provision for scheme regulations to make provision about injury and compensation benefits payable under existing injury and compensation schemes, to make provision for cases where a member is made redundant, for cases where a member’s remuneration is subject to a condition relating to pensionable service under a particular scheme and for cases where two schemes make provision in relation to the same period of remediable service. Section 27 of PSPJOA 2022 requires certain powers to make scheme regulations to be exercised in accordance with Treasury directions.

These Regulations are scheme regulations under PSPA 2013 and made in accordance with PSPJOA 2022, and relate to a member’s remediable service in an armed forces pension scheme. They are, to the extent required by section 27 of PSPJOA 2022, made in accordance with Treasury directions under that section (in the form of the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions 2022). These Regulations have retrospective effect, which is authorised by section 3(3)(b) of PSPA 2013.

Part 2 of these Regulations makes provision for members of the Armed Forces Pension Scheme 1975 (“AFPS 1975”). The rules for the AFPS 1975 are set out in Schedules 1 and 3 to three instruments, one for each of the Services. This Part amends Schedule 1 rules relating to reckonable service, abatement of pension, and the calculation of an officer’s pension. Schedule 3 is amended by substituting a definition of a member’s transition date and omitting the unlawfully discriminatory rule. This Part also inserts a new Schedule into the instruments containing the rules of the AFPS 1975, making provision for members with remediable service under PSPJOA 2022.

Part 3 of these Regulations makes provision for members of the Armed Forces Pension Scheme 2005 (“AFPS 2005”). This Part amends rules relating to reckonable service, nomination of death in service benefits, aggregation of service and abatement of pension. Schedule 2 to the AFPS 2005 rules is amended by substituting a definition of a member’s transition date and omitting the unlawfully discriminatory rule. This Part also inserts a new Schedule into the AFPS 2005, making provision for members with remediable service under PSPJOA 2022.

Part 4 of these Regulations amends the rules of the Armed Forces Early Departure Payments Scheme 2005 (“EDP 2005”), by amending definitions and inserting a new Schedule, making provision for members with remediable service under PSPJOA 2022.

Part 5 of these Regulations makes provision for members of the Reserve Forces Pension Scheme 2005 (“RFPS 2005”). This Part amends rules relating to reckonable service, nomination of death in service benefits and abatement of pension. Schedule 3 to the RFPS 2005 rules is amended by substituting a definition of a member’s transition date and omitting the unlawfully discriminatory rule. This Part also inserts a new Schedule into the RFPS 2005, making provision for members with remediable service under PSPJOA 2022.

Part 6 of these Regulations makes provision for members of the Full-Time Reserve Service Pension Scheme 1997 (“FTRS 1997”). This Part amends rules relating to reckonable service and abatement of pension. Schedule 2 to the FTRS 1997 rules is amended by substituting a definition of a member’s transition date and omitting the unlawfully discriminatory rule. This Part also inserts a new Schedule into the FTRS 1997, making provision for members with remediable service under PSPJOA 2022.

Part 7 of these Regulations makes provision for members of the Non Regular Permanent Staff Pension Scheme (“NRPS 2011”). This Part amends a rule relating to reckonable service in Schedule 1. Schedule 3 to the NRPS 2011 rules is amended by substituting a definition of a member’s transition date and omitting the unlawfully discriminatory rule. This Part also inserts a new Schedule into the NRPS 2011, making provision for members with remediable service under PSPJOA 2022.

Part 8 of these Regulations makes provision for members of the Armed Forces Pension Scheme 2015 (“the reformed scheme”). This Part amends a provision in the 2015 Regulations relating to eligibility for active membership where a member opts back into remediable service. This Part also inserts a new Schedule into the reformed scheme, making provision for members with remediable service under PSPJOA 2022.

Part 9 of these Regulations amends the Armed Forces Resettlement Commutation Scheme 2010 in relation to members with remediable service under PSPJOA 2022.

Part 10 of these Regulations amends the rules of the Armed Forces Redundancy Scheme 2020 in relation to members with remediable service under PSPJOA 2022.

Part 11 of these Regulations amends the rules of the Armed Forces Compensation Scheme 2011, making provision for the recovery of overpayments relating to a member with remediable service under PSPJOA 2022 in certain cases.

Schedule 1 to these Regulations contains the new Schedule to be inserted into the AFPS 1975, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions, particularly of those members who are eligible to make a decision under the terms of the Schedule (and the provisions of PSPJOA 2022).

• Part 2 makes provision about when and to whom a remediable service statement is to be provided by the Scheme manager, as well as the contents of the remediable service statement.

• Part 3 makes provision about the principal decisions that may be made in relation to a member’s remediable service—

  • Chapter 1 makes provision about when and how an election may be made for service in respect of which a member opted-out of an armed forces pension scheme to be reinstated and treated as remediable service;

  • Chapter 2 makes provision about when and how a decision may be made, or be deemed to have been made, about whether the remediable service of a pensioner or deceased member (an “immediate choice member”) is to be treated as service in the member’s legacy scheme or in the reformed scheme;

  • Chapter 3 makes provision similar to Chapter 2, but in relation to the remediable service of an active or deferred member (a “deferred choice member”).

• Part 4 makes provision about cases in which the pension rights secured by virtue of a member’s remediable service are at issue in proceedings relating to the member’s separation from a spouse or civil partner—

  • Chapter 1 makes provision about sharing the value of such rights under a pension sharing order where they are subject to a pension debit under section 29 of the Welfare Reform and Pensions Act 1999 (c. 30) (“WRPA 1999”). It provides, in particular, for the calculation or, where appropriate, the re-calculation of the value of a pension debit and a pension credit in relation to the rights;

  • Chapter 2 makes provision about the calculation of the value of rights for the purposes of sharing those rights under an arrangement other than a pension sharing order.

• Part 5 makes provision about voluntary contribution arrangements that may be entered into by a member in relation to the period of their remediable service, to secure further pension rights.

• Part 6 makes provision about transfers in and out of the Scheme of pension rights during the period of a member’s remediable service.

• Part 7 makes provision about special cases: the protection of child pensions, determination of ill-health pension awards, calculation of benefits, death lump sum nomination, abatement and the payment of annual allowance tax charges.

• Part 8 makes provision about the benefits that may be payable where a member makes a decision to elect for new scheme benefits.

• Part 9 makes provision about any amounts (“relevant amounts”) owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

• Part 10 makes provision for determining who may make the principal decision under Part 3 where the member has died.

Schedule 2 to these Regulations contains the new Schedule to be inserted into the AFPS 2005, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions, particularly of those members who are eligible to make a decision under the terms of the Schedule (and the provisions of PSPJOA 2022).

• Part 2 makes provision about when and to whom a remediable service statement is to be provided by the Scheme manager, as well as the contents of the remediable service statement.

• Part 3 makes provision about the principal decisions that may be made in relation to a member’s remediable service—

  • Chapter 1 makes provision about when and how an election may be made for service in respect of which a member opted-out of an armed forces pension scheme to be reinstated and treated as remediable service;

  • Chapter 2 makes provision about when and how a decision may be made, or be deemed to have been made, about whether the remediable service of an immediate choice member is to be treated as service in the member’s legacy scheme or in the reformed scheme;

  • Chapter 3 makes provision similar to Chapter 2, but in relation to the remediable service of a deferred choice member.

• Part 4 makes provision for the payment of pension in relation to certain former members of the AFPS 1975 (re-joiners).

• Part 5 makes provision about cases in which the pension rights secured by virtue of a member’s remediable service are at issue in proceedings relating to the member’s separation from a spouse or civil partner—

  • Chapter 1 makes provision about sharing the value of such rights under a pension sharing order where they are subject to a pension debit under section 29 of the WRPA 1999. It provides, in particular, for the calculation or, where appropriate, the re-calculation of the value of a pension debit and a pension credit in relation to the rights;

  • Chapter 2 makes provision about the calculation of the value of rights for the purposes of sharing those rights under an arrangement other than a pension sharing order.

• Part 6 makes provision about voluntary contribution arrangements that may be entered into by a member in relation to the period of their remediable service, to secure further pension rights.

• Part 7 makes provision about transfers in and out of the Scheme of pension rights during the period of a member’s remediable service.

• Part 8 makes provision about special cases: the protection of child pensions, determination of ill-health pension awards, calculation of benefits, death lump sum nomination, abatement and the payment of annual allowance tax charges.

• Part 9 makes provision about relevant amounts owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a Scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

• Part 10 makes provision for determining who may make the principal decision under Part 3 where the member has died.

Schedule 3 to these Regulations contains the new schedule to be inserted into the EDP 2005, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions, particularly of those members who are eligible to make a decision under the terms of the Schedule (and the provisions of PSPJOA 2022).

• Part 2 makes provision about when and to whom a remediable service statement is to be provided by the Scheme manager, as well as the contents of the remediable service statement.

• Part 3 makes provision about the principal decisions that may be made in relation to a member’s remediable service—

  • Chapter 1 makes provision about when and how an election may be made for service in respect of which a member opted-out of an armed forces pension scheme to be reinstated and treated as remediable service;

  • Chapter 2 makes provision about when and how a decision may be made, or be deemed to have been made, about whether the remediable service of an immediate choice member is to be treated as service in the member’s legacy scheme or in the reformed scheme;

  • Chapter 3 makes provision similar to Chapter 2, but in relation to the remediable service of a deferred choice member.

• Part 4 makes provision about special cases: the calculation of benefits in respect of remediable service where the member makes an election for new scheme benefits.

• Part 5 makes provision about relevant amounts owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

Schedule 4 to these Regulations contains the new Schedule to be inserted into the RFPS 2005, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions, particularly of those members who are eligible to make a decision under the terms of the Schedule (and the provisions of PSPJOA 2022).

• Part 2 makes provision about when and to whom a remediable service statement is to be provided by the Scheme manager, as well as the contents of the remediable service statement.

• Part 3 makes provision about the principal decisions that may be made in relation to a member’s remediable service—

  • Chapter 1 makes provision about when and how an election may be made for service in respect of which a member opted-out of an armed forces pension scheme to be reinstated and treated as remediable service;

  • Chapter 2 makes provision about when and how a decision may be made, or be deemed to have been made, about whether the remediable service of an immediate choice member is to be treated as service in the member’s legacy scheme or in the reformed scheme;

  • Chapter 3 makes provision similar to Chapter 2, but in relation to the remediable service of a deferred choice member.

• Part 4 makes provision about cases in which the pension rights secured by virtue of a member’s remediable service are at issue in proceedings relating to the member’s separation from a spouse or civil partner—

  • Chapter 1 makes provision about sharing the value of such rights under a pension sharing order where they are subject to a pension debit under section 29 of the WRPA 1999. It provides, in particular, for the calculation or, where appropriate, the re-calculation of the value of a pension debit and a pension credit in relation to the rights;

  • Chapter 2 makes provision about the calculation of the value of rights for the purposes of sharing those rights under an arrangement other than a pension sharing order.

• Part 5 makes provision about voluntary contribution arrangements that may be entered into by a member in relation to the period of their remediable service, to secure further pension rights.

• Part 6 makes provision about transfers in and out of the Scheme of pension rights during the period of a member’s remediable service.

• Part 7 makes provision about special cases: the protection of child pensions, calculation of benefits, abatement, death lump sum nomination, and the payment of annual allowance tax charges.

• Part 8 makes provision about relevant amounts owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

• Part 9 makes provision for determining who may make the principal decision under Part 3 where the member has died.

Schedule 5 to these Regulations contains the new schedule to be inserted into the FTRS 1997, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions, particularly of those members who are eligible to make a decision under the terms of the Schedule (and the provisions of PSPJOA 2022).

• Part 2 makes provision about when and to whom a remediable service statement is to be provided by the Scheme manager, as well as the contents of the remediable service statement.

• Part 3 makes provision about the principal decisions that may be made in relation to a member’s remediable service—

  • Chapter 1 makes provision about when and how an election may be made for service in respect of which a member opted-out of an armed forces pension Scheme to be reinstated and treated as remediable service;

  • Chapter 2 makes provision about when and how a decision may be made, or be deemed to have been made, about whether the remediable service of an immediate choice member is to be treated as service in the member’s legacy scheme or in the reformed scheme;

  • Chapter 3 makes provision similar to Chapter 2, but in relation to the remediable service of a deferred choice member.

• Part 4 makes provision about cases in which the pension rights secured by virtue of a member’s remediable service are at issue in proceedings relating to the member’s separation from a spouse or civil partner—

  • Chapter 1 makes provision about sharing the value of such rights under a pension sharing order where they are subject to a pension debit under section 29 of the WRPA 1999. It provides, in particular, for the calculation or, where appropriate, the re-calculation of the value of a pension debit and a pension credit in relation to the rights;

  • Chapter 2 makes provision about the calculation of the value of rights for the purposes of sharing those rights under an arrangement other than a pension sharing order.

• Part 5 makes provision about transfers in and out of the Scheme of pension rights during the period of a member’s remediable service.

• Part 6 makes provision about special cases: the protection of child pensions, determination of ill-health pension awards, calculation of benefits, death lump sum nomination, abatement and the payment of annual allowance tax charges.

• Part 7 makes provision about relevant amounts owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

• Part 8 makes provision for determining who may make the principal decision under Part 3 where the member has died.

Schedule 6 to these Regulations contains the new Schedule to be inserted into the NRPS 2011, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions, particularly of those members who are eligible to make a decision under the terms of the Schedule (and the provisions of PSPJOA 2022).

• Part 2 makes provision about when and to whom a remediable service statement is to be provided by the Scheme manager, as well as the contents of the remediable service statement.

• Part 3 makes provision about the principal decisions that may be made in relation to a member’s remediable service—

  • Chapter 1 makes provision about when and how an election may be made for service in respect of which a member opted-out of an armed forces pension scheme to be reinstated and treated as remediable service;

  • Chapter 2 makes provision about when and how a decision may be made, or be deemed to have been made, about whether the remediable service of an immediate choice member is to be treated as service in the member’s legacy scheme or in the reformed scheme;

  • Chapter 3 makes provision similar to Chapter 2, but in relation to the remediable service of a deferred choice member.

• Part 4 makes provision about cases in which the pension rights secured by virtue of a member’s remediable service are at issue in proceedings relating to the member’s separation from a spouse or civil partner—

  • Chapter 1 makes provision about sharing the value of such rights under a pension sharing order where they are subject to a pension debit under section 29 of the WRPA1999. It provides, in particular, for the calculation or, where appropriate, the re-calculation of the value of a pension debit and a pension credit in relation to the rights;

  • Chapter 2 makes provision about the calculation of the value of rights for the purposes of sharing those rights under an arrangement other than a pension sharing order.

• Part 5 makes provision about transfers in and out of the Scheme of pension rights during the period of a member’s remediable service.

• Part 6 makes provision about special cases: the protection of child pensions, determination of ill-health pension awards, calculation of benefits, death lump sum nomination and the payment of annual allowance tax charges.

• Part 7 makes provision about relevant amounts owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

• Part 8 makes provision for determining who may make the principal decision under Part 3 where the member has died.

Schedule 7 to these Regulations contains the new Schedule to be inserted into the 2015 Regulations, divided into the following Parts.

• Part 1 of the Schedule contains introductory provisions and definitions.

• Part 2 makes provision in relation to added pension—

  • extinguishing rights purchased during a period of remediable service and providing for compensation to be paid to the member;

  • to allow the member to make an additional lump sum contribution in the period ending 31st March 2025 to purchase added pension.

• Part 3 makes provision about cases in which the pension rights secured by virtue of a member’s remediable service are at issue in proceedings relating to the member’s separation from a spouse or civil partner.

• Part 4 makes provision about transfers in and out of the scheme of pension rights during the period of a member’s remediable service.

• Part 5 makes provision the calculation of the index adjustment where member makes an election for reformed scheme benefits.

• Part 6 makes provision about relevant amounts owed to or by a person as a result of PSPJOA 2022 or these Regulations—

  • Chapter 2 makes provision for the calculation of interest on relevant amounts, for the increase of benefits instead of the payment of a relevant amount, for the making of an application where a person wishes to claim compensation, and for the netting off of relevant amounts owed to and by a person;

  • Chapter 3 makes provision about the reduction and waiver of relevant amounts, in particular a requirement for the Scheme manager to reduce some relevant amounts by tax relief amounts, the discretion of the Scheme manager to reduce or waive relevant amounts owed by a person to a scheme in certain circumstances, and the option to defer payment of certain relevant amounts owed to a member until an election is made in relation to the member’s remediable service;

  • Chapter 4 makes provision about when and how relevant amounts must be paid.

An impact assessment has not been completed for these Regulations. An Explanatory Memorandum has been published alongside these Regulations on https://www.legislation.gov.uk/.