The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026

AFPS 1975: election for new scheme benefits

10.—(1) This regulation applies where—

(a) a section 6 election or a section 10 election is made in relation to an individual’s remediable service under the AFPS 1975; and

(b) as a result of that election, new scheme benefits(1) which are equivalent to EDP 2015 benefits are payable in relation to that individual’s remediable service under the AFPS 1975 (“EDP 2015 equivalent benefits”).

(2) For the purposes of the Pensions Tax Acts—

(a) EDP 2015 equivalent benefits are to be treated as being payable from a separate part of the AFPS 1975 (“the separate part”);

(b) the separate part—

(i) is to be treated as an employer-financed retirement benefits scheme which is only liable to pay EDP 2015 equivalent benefits; and

(ii) is to be ignored for the purposes of applying Part 4 of FA 2004 to the AFPS 1975.

(3) EDP 2015 equivalent benefits which are paid in the form of a lump sum are to be treated as a lump sum provided under the EDP 2015 Scheme for the purposes of section 640A of ITEPA 2003 (lump sums provided under armed forces early departure scheme)(2).

(1)

“New scheme benefits” has the meaning given in section 34 of PSPJOA 2022.

(2)

Section 640A of ITEPA 2003 was inserted by section 19(5) of FA 2005 (c. 7) and was amended by section 15(1) of FA 2015 (c. 11).