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The Armed Forces Pension Scheme Order 2005

Type Statutory-Instrument
Publication 2005-03-08
Last updated 2025-03-19
State In force
Department King's Printer of Acts of Parliament
Source legislation.gov.uk
PDF Download
articles 5
Reform history JSON API

[^key-95c6ecefc6f48c2ea572e628d3d5b84d]: Sch. 1 rule C.4(2)(cc) inserted (31.12.2014) by The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order 2014 (S.I. 2014/3255), arts. 1(2), 15(5)(b)

[^key-972a6fd7d0b24c1c0e71fa11fc3b6e3f]: Sch. 1 rule G.4(5) inserted (17.12.2014) by The Armed Forces Pension Scheme and Armed Forces Early Departure Payments Scheme (Amendment) Order 2014 (S.I. 2014/2958), arts. 1(2), 3(3)

[^key-98869fb78b72aa3c9cd470cae3eb30e2]: Words in Sch. 1 rule A.4(4) substituted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(1)

[^key-98dab5a338939cfaf332df932694e5f9]: Rule D.2(7) inserted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(4)(c)

[^key-9af344268117ccf6e0dc24b1caf32262]: Words in Sch. 1 rule A.1(4) inserted (N.I.) (15.3.2015) by The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order (Northern Ireland) 2015 (S.R. 2015/146), arts. 1(2), 14(2)(a)

[^key-9ef50613304e1ff2669692e81cde27b1]: Words in Sch. 1 rule D.8(5) inserted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 4(4)(a)

[^key-9f356dfdf7c7f3c5e178f1c37cfb6085]: Sch. 2 para. 41 omitted (1.4.2022) by virtue of The Armed Forces Pensions (Amendment) Regulations 2022 (S.I. 2022/323), regs. 1(2), 3(2)(d)

[^key-a17d9d306cef37956ce619c92d5d0818]: Words in Sch. 1 rules D.5(2), (3) revoked (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 6(3)(a), Sch.

[^key-a7f8993d7af8ff6c9197b81823f7f5c1]: Words in Sch. 1 rule A.1(4) revoked (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 11(3)(b), Sch.

[^key-aa2050f8a814c784d84e2bf0f7061721]: Sch. 1 rule A.10(1A) inserted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 9(1)(b)

[^key-ab4f90fb1369031d3f9ecaeb3c5276a7]: Words in Sch. 2 para. 14(4) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), regs. 1(3), 3(3)(a)

[^key-ab692ca99ec6c9aeac174a83304a7980]: Art. 4 in force at 6.4.2005, see art. 1

[^key-ad134f97b5d6252e280207cf5939cf5c]: Rule E.15(4) substituted (10.1.2012) by The Armed Forces Redundancy Scheme 2006, the Armed Forces Redundancy Etc. Schemes 2010 and the Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/3013), arts. 1, 13(2)

[^key-ad7bb692867d66ed8037cca9d525c701]: Rule D.4(3)(b) substituted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(8)(b)

[^key-b09aa8085412bd54719bb44364b7d34e]: Sch. 1 J.11-J.13 and heading inserted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 10(1)

[^key-b0bd67ae9840399675ad9ba9dce01a17]: Word in Sch. 1 rule A.7(1) omitted (1.10.2007) by virtue of The Armed Forces (Gurkha Pensions) Order 2007 (S.I. 2007/2608), arts. 1(1), 3(3)(a)

[^key-b18f053c15a91364a15a1e30b5dddcb0]: Sch. 2 para. 8(2)(b) and word omitted (1.10.2023) by virtue of The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), regs. 1(b), 9(3)(a)

[^key-b511df156af30bfdd5f75cbedf06ec4d]: Sch. 1 rule F.1(7) inserted (1.10.2007) by The Armed Forces (Gurkha Pensions) Order 2007 (S.I. 2007/2608), arts. 1(1), 3(11)

[^key-b61bb3ef36f34b2a456cd1abee591f1a]: Words in Sch. 2 para. 46(1) substituted (1.4.2022) by The Armed Forces Pensions (Amendment) Regulations 2022 (S.I. 2022/323), reg. 1(2), 3(2)(e)(i)

[^key-b7d131921f92eba308a82897e3a7ef1b]: Words in Sch. 1 rule D.8(5)(a) revoked (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 6(3)(b), Sch.

[^key-b9b00a278a567ca2d2e63053b354ed95]: Sch. 1 rule E.3(4A) inserted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 9(2)

[^key-bb56c176892b43cb65d7cd78ef673876]: Word in Sch. 1 rule A.1(4) omitted (5.4.2015) by virtue of The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order 2014 (S.I. 2014/3255), arts. 1(3), 15(2)(a)(ii) (with art. 35(1))

[^key-bde862424b1e0086d64d8d53a1d67af0]: Art. 2(2) revoked (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), art. 1(2), Sch.

[^key-bf337664ea5b8f95d14fae7d0f4eb564]: Sch. 2 para. 8(3)(c) and word omitted (1.10.2023) by virtue of The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), regs. 1(b), 9(3)(b)

[^key-c035e2f2c66545b6c85c5de9a21e6e9e]: Art. 6 inserted (1.10.2023) by The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), regs. 1(b), 7

[^key-c4593017fe5743bf7ee727d17020061e]: Words in Sch. 1 rule B.1(b)(ii) inserted (1.10.2007) by The Armed Forces (Gurkha Pensions) Order 2007 (S.I. 2007/2608), arts. 1(1), 3(5)(b)

[^key-c483e07a90bf96289880efd2944126d6]: Sch. 1 in force at 6.4.2005, see art. 1

[^key-c6322638380dbd8934c14813b05ca692]: Sch. 1 rule D.14(4A) inserted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 8(2)

[^key-c63e26c3044baf82dac118d10935a4ba]: Rule D.4(3)(c) omitted (27.6.2011) by virtue of The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(8)(c)

[^key-c960083aa3fe88605c4eabb4dcc69446]: Words in Sch. 2 para. 46(2) substituted (1.4.2022) by The Armed Forces Pensions (Amendment) Regulations 2022 (S.I. 2022/323), reg. 1(2), 3(2)(e)(ii)

[^key-c9b13d1b15063a1ea162bd155e21eddf]: Sch. 2 inserted (1.4.2015) by The Armed Forces (Transitional Provisions) Pensions Regulations 2015 (S.I. 2015/568), reg. 1(2), Sch. 2

[^key-c9d5675130bd491b7ba4786ea32c7834]: Word in Sch. 1 rule A.8(1)(f) omitted (6.4.2009) by virtue of The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 8(2)(a)

[^key-ca159470607a9d52317255aae3fdee3e]: Words in Sch. 1 rule D.7(1)(a) substituted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(4)(a)

[^key-caf2539def965f4c5bbd0bbefc51f7a5]: Sch. 1 rules D.8(7)(7A) substituted for Sch. 1 rule D.8(7) (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(5)

[^key-cc059f7b81eaf4271e25998e89fb52cc]: Sch. 1 rule A.8(3) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), regs. 1(3), 2(5)(b)

[^key-cde12bf7a03bd7c06fc35f0000ac597c]: Words in Sch. 1 rule A.1(4) inserted (1.10.2023) by The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), regs. 1(b), 8(2)

[^key-d446d6c5788fd4289ee45f6e285e3e4c]: Word in Sch. 1 rule A.7(1)(d) omitted (6.4.2009) by virtue of The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 8(1)(a)

[^key-d7da7e224b3bfd94d38b47cb199127ab]: Sch. 1 rule J.9(1): Sch. 1 rule J.9 renumbered as Sch. 1 rule J.9(1) (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 6(1)

[^key-dac7b3f7a6227ef3e56acf8518b26d9f]: Words in Sch. 1 rule D.8(4)(b) revoked (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 6(3)(b), Sch.

[^key-dbcbfa4b3f5c83e3cceb0bd8d3afae19]: Words in Sch. 1 rule D.6(1)(b)(ii) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 11(1)

[^key-dc270f09c35592c7e428a3ed795136cc]: Words in Sch. 1 rule A.1(4) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 11(3)(a)

[^key-de37013af8616ecde6843b967eb96836]: Words in Sch. 1 rule D.8(10) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 4(4)(d)

[^key-dff0b5e4f8de9a9899e9151c5606a7ee]: Sch. 1 rule H.1(2)(d) and word inserted (1.4.2015) by The Armed Forces (Transitional Provisions) Pensions Regulations 2015 (S.I. 2015/568), regs. 1(2), 12(d)

[^key-e3ed19277d7a11a42c59def1944026bb]: Sch. 1 rule D.11(4) omitted (6.4.2009) by virtue of The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(7)

[^key-e4800b2bef6c87f0ba2f78af45228384]: Words in Sch. 1 rule A.1(4) omitted (5.4.2015) by virtue of The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order 2014 (S.I. 2014/3255), arts. 1(3), 15(2)(a)(i) (with art. 35(1))

[^key-e48a002b726998fb14990c5d51e98914]: Sch. 1 rule E.1(5) inserted (E.W.) (10.12.2014) by The Marriage (Same Sex Couples) Act 2013 and Marriage and Civil Partnership (Scotland) Act 2014 (Consequential Provisions) Order 2014 (S.I. 2014/3061), art. 1(2), Sch. 1 para. 15; (S.) (16.12.2014) by The Marriage (Same Sex Couples) Act 2013 and Marriage and Civil Partnership (Scotland) Act 2014 (Consequential Provisions) Order 2014 (S.I. 2014/3061), art. 1(3), Sch. 2 para. 1(2)

[^key-e9cb7d4b5acf1890f77795f1dea2123b]: Words in Sch. 2 para. 9(1)(d) inserted (31.3.2022 with effect on and after 1.4.2015) by The Armed Forces Pensions (Amendment) Regulations 2022 (S.I. 2022/323), regs. 1(3)(b), 3(2)(c)(i) (with reg. 3(3))

[^key-e9ce6131c5b8dba13af1f99b6463a8b3]: Sch. 1 rule A.2A inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), regs. 1(3), 2(3)

[^key-ea04f0e447af9ced8dfb70859b5f6fdc]: Words in Sch. 1 rule L.3(7)(a)(i) inserted (29.2.2008) by The Armed Forces (Gurkha Pensions) (Amendment) Order 2008 (S.I. 2008/229), arts. 1, 2(2)(a)

[^key-eb509c628a7664fb6baede7f13d9b547]: Word in Sch. 1 rule C.4(2)(c) omitted (31.12.2014) by virtue of The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order 2014 (S.I. 2014/3255), arts. 1(2), 15(5)(a)

[^key-eb87a52534075ea559771dfa061462b2]: Words in Sch. 2 para. 17(4) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), reg. 1(3), 3(4)(a)

[^key-edfdc913ef1723c933e46237f1ce04ee]: Sch. 1 rule A.10(4) inserted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 9(1)(c)

[^key-f28974612327bfef0d85887503d84641]: Word in Sch. 1 rule G.3(4) omitted (1.10.2007) by virtue of The Armed Forces (Gurkha Pensions) Order 2007 (S.I. 2007/2608), arts. 1(1), 3(12)(a)

[^key-f3b894d188f4fba979633a33d026b36c]: Word in rule D.4(1) substituted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(7)

[^key-f448e8483a2aaaa8ac11b6b3b0dea162]: Rule E.9(4) substituted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(9)(a)

[^key-f509067195b827a5253081fc716e7922]: Sch. 1 rule H.3(1) substituted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), regs. 1(3), 2(13)(a)

[^key-f72e9ed26213fa8a0c9dd93e2518ec6f]: Art. 2 in force at 6.4.2005, see art. 1

[^key-f7e320c0a973dad7626e81099e2070da]: Art. 1 in force at 6.4.2005, see art. 1

[^key-f836bf22b1751411a1fc50e7eacde52e]: Words in Sch. 1 rule B.1(a)(ii) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 12(1)

[^key-f91cc974a05889a5da40c8bc334552cc]: Words in Sch. 1 rule E.6(3) inserted (1.10.2007) by The Armed Forces (Gurkha Pensions) Order 2007 (S.I. 2007/2608), arts. 1(1), 3(10)

[^key-f98b316e5fe037bbacd4fa2a70f5f209]: Words in Sch. 1 rule D.5(2) substituted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(3)

[^key-f9f109d349c8d520ca70c763ddfb2e40]: Words in Sch. 1 rule A.8(4) inserted (1.10.2023) by The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), regs. 1(b), 8(3)

[^key-fb56b320f96073487e77523173d17ef6]: Sch. 1 rules D.6(1)(a)(aa) substituted for Sch. 1 rule D.6(1)(a) (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 4(2)

[^key-fbdd7f40052034d0c83040c6e9c08fe1]: Words in rule D.2(1) inserted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(4)(a)

[^key-fccdd01ed3c9904a16cb89ca906cf613]: Words in Sch. 1 rule D.2(1)(b) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 11(1)

[^key-fe2d2392674b9d60360e0cd386e32a31]: Words in Sch. 2 para. 17(5) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), reg. 1(3), 3(4)(b)

[^key-fffc640ac23f179e1e9ec6f3a33fabbc]: Words in Sch. 1 rule F.7(1) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 11(2)(a)

[^key-d1ce0c66f160e3efe81105b3eeb36aea]: Words in Sch. 1 rule E.28(3) substituted (20.12.2023) by The National Security Act 2023 (Consequential Amendments of Subordinate Legislation) Regulations 2023 (S.I. 2023/1267), reg. 1(2), Sch. para. 10(3)(b)

[^key-4820b8ff46b6bf151e9f6c5ab614bc11]: Words in Sch. 1 rule J.6(1)(a) inserted (20.12.2023) by The National Security Act 2023 (Consequential Amendments of Subordinate Legislation) Regulations 2023 (S.I. 2023/1267), reg. 1(2), Sch. para. 10(2)

[^key-0516d76ba8992d0f54c236396836e0d7]: Words in Sch. 1 rule D.17(9)(a) substituted (20.12.2023) by The National Security Act 2023 (Consequential Amendments of Subordinate Legislation) Regulations 2023 (S.I. 2023/1267), reg. 1(2), Sch. para. 10(3)(a)

[^key-fecb17de2a098d27bf88179a0a3f2558]: Words in Sch. 1 rule J.5(3) substituted (20.12.2023) by The National Security Act 2023 (Consequential Amendments of Subordinate Legislation) Regulations 2023 (S.I. 2023/1267), reg. 1(2), Sch. para. 10(3)(c)

[^key-aeb16e0f678c6a529edd590771732144]: Words in Sch. 1 rule A.1(4) omitted (19.3.2025) by virtue of The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(2)(a)

[^key-99a9489eb8e25a18d92c6e87e6a6aaa4]: Words in Sch. 1 rule A.8(4) substituted (19.3.2025) by The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(2)(b)(i)

[^key-c49e8881bf951328a467c4f995128f2b]: Words in Sch. 1 rule A.8(4) substituted (19.3.2025) by The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(2)(b)(ii)

[^key-1151b37bfa88c82b5e36ff49154f44ec]: Word in Sch. 1 rule E.21(3A) substituted (19.3.2025) by The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(2)(c)

[^key-c159f25074542e1b88e22bccb923bd17]: Words in Sch. 3 para. 1(1) substituted (19.3.2025) by The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(4)(a)

[^key-627b99730e025ce4590fb70cae1db4be]: Words in Sch. 3 para. 1(1) omitted (19.3.2025) by virtue of The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(4)(b)

[^key-328dc5f47fe10a50ec909b26b5b4ed18]: Words in Sch. 2 para. 2(2) substituted (19.3.2025 with effect on and after 1.10.2023) by The Armed Forces Pensions (Remediable Service) (Amendment) Regulations 2025 (S.I. 2025/188), regs. 1(b), 3(3)(5)

Payment and deduction of tax

Payment on behalf of members of lifetime allowance charge

J.11
  • (1) A member may request the person who is the scheme administrator for the purposes of section 217 of the Finance Act 2004 (“the administrator”) to pay on his behalf any amount that is payable by way of the lifetime allowance charge under section 214 of that Act when—
  • (a) an event that is a benefit crystallisation event listed in the table in section 216(1) of that Act occurs in relation to him, and
  • (b) the member and the administrator are jointly and severally liable to the charge in respect of the event.
  • (2) Such a request may only be made by notice in writing given before the event occurs.
  • (3) The administrator may only comply with such a request if the member pays him the amount in question on or before the date on which the event occurs.

Reduction of benefits and transfer values where lifetime allowance charge payable

J.12
  • (1) This rule applies if—
  • (a) an event that is a benefit crystallisation event listed in the table in section 216(1) of the Finance Act 2004 (“the table”) occurs in relation to a member,
  • (b) the member and the person who is the scheme administrator for the purposes of section 217 of that Act (“the administrator”) are jointly and severally liable to the charge in respect of the event, and
  • (c) no request has been duly made under rule J.11 in relation to the event or, if such a request has been made, the administrator is prevented from complying with it by paragraph (3) of that rule.
  • (2) Where this rule applies—
  • (a) the administrator must pay the tax payable on the event,
  • (b) if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced, and
  • (c) in the case of any other event, the amount or value of the benefits payable to or in respect of the member must be reduced.
  • (3) The amount or value of the reduction must be such that, in the opinion of the Scheme actuary, it fully reflects the amount of the tax so paid.

Deduction of special lump sum death benefits charge

J.13

Before a payment is made that is a pension protection lump sum death benefit for the purposes of Part 4 of the Finance Act 2004 (see paragraph 14 of Schedule 29 to that Act), the person who is the scheme administrator for the purposes of section 217 of that Act may deduct from it any tax due in respect of the payment under section 206 of that Act (the special lump sum death benefits charge).

PART L — GURKHA PENSION SCHEME TRANSFEREES

Application of Part L: meaning of “Gurkha Pension Scheme transferee”

L.1
  • (1) This Part makes provision in relation to persons who—
  • (a) are active members or pensioner members of the Gurkha Pension Scheme on 1st October 2007 or were active members of that Scheme on 6th April 2006, and
  • (b) opt to become members of the Scheme on the basis set out in this Part.
  • (2) In this Part—
  • (a) references to the Gurkha Pension Scheme are references to the Gurkha Pension Scheme constituted by the Royal Warrant of 19th December 1949 (see Army Order 151 of 1949), and
  • (b) references to a Gurkha ill-health pensioner are to a pensioner member of the Gurkha Pension Scheme who is entitled to a pension under that Scheme by virtue of a health condition corresponding to such a condition as is mentioned in rule D.5(1)(a) or D.6(1)(a).
  • (3) In these Rules any reference to a “Gurkha Pension Scheme transferee” is a reference to a person who has become a member of the Scheme as the result of this Part.

Option for active members of Gurkha Pension Scheme to join the Scheme

L.2
  • (1) A person who—
  • (a) would be eligible to join the Scheme by virtue of the person’s service in the Brigade of Gurkhas if the person met the condition in rule B.1(b)(i) (which requires that the person’s service begins on or after 6th April 2005),
  • (b) meets the condition specified in paragraph (2), and
  • (c) has opted to become an active member of the Scheme under the terms of this Part,

is eligible to become such a member under those terms.

  • (2) The condition referred to in paragraph (1)(b) is that the person has been an active member of the Gurkha Pension Scheme for a period beginning on or after 1st July 1997 and ending with 30 September 2007.
  • (4) The option must have been exercised by giving notice in writing to the Scheme administrator in such form as the Secretary of State requires on or before 30th September 2007 or such later date as the Secretary of State considers appropriate.
  • (5) For this purpose the notice is treated as having been given on the date on which it was received by the Scheme administrator.
  • (6) The option has effect on 1st October 2007 and is irrevocable unless paragraph (7) applies.
  • (7) This paragraph applies if the Secretary of State gives notice in writing to the person stating that the person may revoke the option by giving notice in writing of the revocation to the Secretary of State before the expiry of the period of 3 months beginning with the date on which the notice is given by the Secretary of State.
  • (8) If a person revokes an option in accordance with paragraph (7), these Rules apply as if the person had never exercised the option.

Option for former active members of Gurkha Pension Scheme to join the Scheme

L.3
  • (1) A person who—
  • (a) would have been eligible on 6th April 2006 to join the Scheme by virtue of the person’s service in the Brigade of Gurkhas if the person—
  • (i) had met the condition in rule B.1(b)(i) (which requires that the person’s service begins on or after 6th April 2005), and
  • (ii) had not been an active member of the Gurkha Pension Scheme on that date, and
  • (b) meets condition A and either condition B or condition C,

may opt to become a member of the Scheme under the terms of this Part.

  • (2) Condition A is that the person was an active member of the Gurkha Pension Scheme for a period—
  • (a) beginning on or after 1st July 1997, and
  • (b) ending with a date falling within the period beginning with 6th April 2006 and ending with 30 September 2007.
  • (3) Condition B is that the person became a pensioner member of the Gurkha Pension Scheme on or before 30 September 2007.
  • (4) Condition C is that the period mentioned in paragraph (2) during which the person was an active member of the Gurkha Pension Scheme was not less than two years and the person ceased to be an active member of that Scheme at the end of it.
  • (5) The option may only be exercised by giving notice in writing to the Scheme administrator on or before the closing date.
  • (6) For this purpose—
  • (a) the notice is treated as having been given on the date on which it is received by the Scheme administrator in such form as the Secretary of State requires, and
  • (b) the closing date is 31st January 2008, unless the Secretary of State considers that a later date is appropriate and has specified that date in a notice in writing given to the Scheme administrator not later than 31st January 2008, in which case it is the date so specified.
  • (7) The option takes effect—
  • (a) if on the day after the closing date the person exercising the option—
  • (i) is a pensioner member of the Gurkha Pension Scheme other than a Gurkha ill-health pensioner, or a prescribed pensioner, and
  • (ii) has not reached the age of 65,

on the day on which the person reaches the age of 65, and

  • (b) otherwise, on the day after the closing date.
  • (7A) In paragraph (7) “prescribed pensioner” means a pensioner member of the Gurkha Pension Scheme who—
  • (a) is eligible to become a member of the Scheme under this Part; and
  • (b) on becoming a member, would become entitled to payments under articles 8 to 10 of the Armed Forces Early Departure Payments Scheme Order 2005 (eligibility, entitlement and amount of early departure payments).
  • (8) The option is irrevocable unless paragraph (9) applies.
  • (9) This paragraph applies if the Secretary of State gives notice in writing to the person stating that the person may revoke the option by giving notice in writing of the revocation to the Secretary of State before the expiry of the period of 3 months beginning with the date on which the notice is given by the Secretary of State.
  • (10) If a person revokes an option in accordance with paragraph (9), these Rules apply as if the person had never exercised the option.

Effect of exercising option under rule L.2 (Gurkha active transferees)

L.4
  • (1) This rule applies if a person has duly exercised the option under rule L.2 and accordingly is eligible to become an active member of the Scheme under the terms of this Part.
  • (2) The person becomes an active member of the Scheme on 1st October 2007 in respect of the service that the person is in on that day in the Brigade of Gurkhas.
  • (3) The member becomes entitled to count under the Scheme—
  • (a) a period of qualifying service equal in length to the period of qualifying service which the member was entitled to count under the Gurkha Pension Scheme on 30th September 2007 (but not exceeding 35 years), and
  • (b) a period of reckonable service equal in length to the sum of—
  • (i) the period of reckonable service which the member was entitled to count under the Gurkha Pension Scheme on that date in respect of service on or after 1st July 1997, and
  • (ii) if the member’s service in the Brigade of Gurkhas began before 1st July 1997, the additional period specified in paragraph (4), (5) or (6) in the case of a person of the member’s rank on 1st October 2007.
  • (4) The additional period referred to in paragraph (3)(b)(ii) in the case of a person who is an officer on 1st October 2007 is the following percentage of so much of the member’s service as falls before that date—
  • (a) in the case of a member then holding the rank of lieutenant, 27%,
  • (b) in the case of a member then holding the rank of captain, 28%, and
  • (c) in the case of a member then holding the rank of major, 23%.
  • (5) The additional period referred to in paragraph (3)(b)(ii) in the case of a person who is not an officer on 1st October 2007 and joined the Brigade of Gurkhas before 1st October 1993 is the following percentage of so much of the member’s service as falls before 1st October 2007—
  • (a) in the case of a member holding the rank of rifleman or lance corporal on 1st October 2007, 36%,
  • (b) in the case of a member then holding the rank of corporal, 30%,
  • (c) in the case of a member then holding the rank of sergeant, 29%,
  • (d) in the case of a member then holding the rank of staff sergeant or warrant officer 2, 27%, and
  • (e) in the case of a member then holding the rank of warrant officer 1, 26%.
  • (6) The additional period referred to in paragraph (3)(b)(ii) in the case of a person who is not an officer on 1st October 2007 and joined the Brigade of Gurkhas on or after 1st October 1993 is a period equal to so much of the member’s service as falls before 1st October 2007.
  • (7) In the case of a member who joined the Brigade of Gurkhas before reaching the age of 17—
  • (a) for the purposes of paragraph (3)(a) and (b)(i) the qualifying and reckonable service that the member was entitled to count under the Gurkha Pension Scheme on 30th September 2007 is taken to include the qualifying and reckonable service that the member would then have been entitled to count under that Scheme if the member had then been entitled to count service before reaching the age of 17 (“pre-17 service”), and
  • (b) for the purposes of paragraph (3)(b)(ii) and (4) to (6), the same regard must be had to the member’s pre-17 service, as to the member’s later service.

Effect of exercising option under rule L.3 (former active Gurkhas)

L.5
  • (1) This rule applies if a person duly exercises the option under rule L.3.
  • (2) On the effective option date the person becomes entitled to count under the Scheme—
  • (a) a period of qualifying service equal in length to the period of qualifying service which the member was entitled to count under the Gurkha Pension Scheme immediately before that date (but not exceeding 35 years), and
  • (b) such period of reckonable service as the Secretary of State considers appropriate, after consultation with the Scheme actuary.
  • (3) On the effective option date—
  • (a) the person is treated for the purposes of Part D as if the person had ceased to be in service by virtue of which he was eligible to be an active member of the Scheme before reaching pension age (but subject to rule L.7(1)),
  • (b) if immediately before that date the person was a Gurkha ill-health pensioner by virtue of a health condition corresponding to such a condition as is mentioned in rule D.5(1)(a), the person is treated as if he fell within rule D.5(1) (but subject to rule L.7(1)), and
  • (c) if immediately before that date the person was a Gurkha ill-health pensioner by virtue of a health condition corresponding to such a condition as is mentioned in rule D.6(1)(a), the person is treated as if he fell within rule D.6(1) (but subject to rule L.7(1)).
  • (4) Accordingly, on the effective option date—
  • (a) if immediately before that date the person was a pensioner member of the Gurkha Pension Scheme, the person becomes a pensioner member of the Scheme,
  • (b) if immediately before that date the person was a pensioner member of the Gurkha Pension Scheme but not a Gurkha ill-health pensioner, the person becomes entitled to an annual pension under rule D.2, subject to the provisions of the Scheme,
  • (c) if immediately before that date the person was a Gurkha ill-health pensioner by virtue of a health condition corresponding to such a condition as is mentioned in rule D.5(1)(a), the person becomes entitled to an annual pension under rule D.5, subject to the provisions of the Scheme,
  • (d) if immediately before that date the person was a Gurkha ill-health pensioner by virtue of a health condition corresponding to such a condition as is mentioned in rule D.6(1)(a), the person becomes entitled to an annual pension under rule D.6, subject to the provisions of the Scheme, and
  • (e) if immediately before that date the person was not a pensioner member of the Gurkha Pension Scheme, the person becomes a deferred member of the Scheme and (assuming that he reaches the age of 65) will become entitled to an annual pension under rule D.2, subject to the provisions of the Scheme.
  • (5) In determining the appropriate period of reckonable service for a member under paragraph (2)(b), the Secretary of State must have regard to—
  • (a) the member’s circumstances and marital or civil partnership status,
  • (b) the rights under the Gurkha Pension Scheme that the member would have enjoyed had the member not exercised the option under rule L.3,
  • (c) the payments that have been made to the member under that Scheme by way of pension or lump sum or will be made by the time the member reaches the age of 65, assuming that the member does so, and
  • (d) the period of reckonable service that the member would have been entitled to count under rule L.4 if the member had become an active member on 1st October 2007 having exercised the option under rule L.2.
  • (6) If a person who has duly exercised the option under rule L.3 and was not a pensioner member of the Gurkha Pension Scheme dies before reaching the age of 65, these Rules apply as if the person had reached the age of 65 on the date of death.
  • (7) In this rule “the effective option date” means the date on which the option takes effect (see rule L.3(7)).

Pension debit members

L.6
  • (1) This rule applies if—
  • (a) on becoming a member of the Scheme a Gurkha Pension Scheme transferee is a pension debit member, and
  • (b) in the opinion of the Scheme administrator it is necessary for the purpose of giving effect to the pension sharing order to which the member’s rights are subject for some or all of the benefits to which the pension member is entitled under the Scheme to be taken in a different form from that in which the member would otherwise be entitled to take them.
  • (2) The Scheme administrator may, after taking advice from the Scheme actuary, make such modifications to the member’s rights as to the form of those benefits as the Scheme administrator considers necessary for that purpose.

Modifications of Scheme rules in case of Gurkha Pension Scheme transferees

L.7
  • (1) A Gurkha Pension Scheme transferee who was a pensioner member of the Gurkha Pension Scheme is not entitled to the payment of a lump sum under rule D.2, D.5 or D.6.
  • (2) Rule E.6 (reduction in pensions under rules E.1 and E.2 in cases of wide age disparity) does not apply to a pension payable under rule E.1 in the case of a member who was a Gurkha Pension Scheme transferee if the member had been the spouse or civil partner of the person to whom the pension is payable continuously since before the relevant date until the member’s death.
  • (3) In paragraph (2) “the relevant date” means—
  • (a) in the case of a member who became an active member as a result of exercising the option under rule L.2, 1st October 2007, and
  • (b) in the case of a member who became a member as a result of exercising the option under rule L.3, the date on which that option took effect (see rule L.3(7)).
  • (4) Rule F.1(4) (right to transfer payment) applies as if a Gurkha Pension Scheme transferee who was not a pensioner member of the Gurkha Pension Scheme was a former active member of this Scheme.

Inflation adjustments in determining final pensionable earnings

Fixed Protection Members

B.6
  • (1) “Fixed protection member” means a person who—
  • (a) is a member of the armed forces; and
  • (b) has ceased to be an active member as described in rule B.4 for the reasons set out in paragraph (2).
  • (2) The reasons referred to in paragraph (1)(b) are that the member has given notice to an officer of Her Majesty’s Revenue and Customs of their intention to rely upon the lifetime allowance transitional protection afforded by paragraph 14 of Schedule 18 to the Finance Act 2011.
  • (3) Service as a fixed protection member is not pensionable service, qualifying service or reckonable service.
  • (4) Rules A.1(5) and (6), D.5, D.6, D.11, D.14, E.1, E.2, E.3, E.10, E.16, E.22, E.25, and E.27 are to be construed as if the references to “active member” also apply to a fixed protection member.
E.3
  • (1) This rule applies in the case of a deceased active member, other than an active member who would not have qualified for a pension under rule D.2 if his service had ceased on the date of death otherwise than by reason of death.
  • (2) The annual amount of the pension payable under rule E.1 (surviving spouses' and civil partners' pensions) and rule E.2 (other adult dependants' pensions) is the appropriate fraction of the member’s final pensionable earnings multiplied by RS, where RS is the higher of—
  • (a) N for the purposes of rule D.5(4) (early payment of benefits: active members with permanent serious ill-health) if the member had become entitled to a pension under rule D.5 on the date of death, and
  • (b) the member’s reckonable service at the date of death in years.
E.4
  • (1) In the case of a deceased deferred member, the annual amount of a pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated by multiplying the appropriate fraction of the member’s final pensionable earnings by the member’s reckonable service at the date of death in years.
  • (2) The appropriate fraction is 1/112.
  • (3) For the purposes of paragraph (1)—
  • (a) if the pension is payable to a person who was married to someone of the same sex or a civil partner, reckonable service within rule A.8(1)(a) only counts if and to the extent that it relates to service after 5th April 1988, and
  • (b) reckonable service exceeding 37 1/3 years does not count.
  • (4) This rule is subject to rule E.3(4) (no amount payable under this rule in certain cases where the member was both an active member and a deferred member).
E.5
  • (1) In the case of a deceased pensioner member, the annual amount of a pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated by multiplying the appropriate fraction of the member’s final pensionable earnings—
  • (a) if the member’s pension was calculated under rule D.1(3), D.2(3) or D.7(2), by the reckonable service mentioned in that rule,
  • (b) if the member’s pension was calculated under rule D.4(4), by the reckonable service used for the first calculation mentioned in that rule, and
  • (c) if the member’s pension was calculated under rule D.5(4) or D.6(2), by the figure that is N for the purposes of that rule.
E.6
  • (1) Where on the death of a member a pension is payable under rule E.1 or E.2 to a person (“the beneficiary”) who is more than 12 years younger than the member, the amount of the pension calculated in accordance with rule E.3, E.4 or E.5 is reduced by the appropriate amount.
  • (2) That amount is the lesser of—
  • (a) 50% of the pension so calculated, or
  • (b) 2.5% × (N −12) of the pension so calculated,

where N is the number of whole years by which the beneficiary is younger than the member.

  • (3) This rule is subject to rule K.8 and rule L.7.
E.7
  • (1) This rule applies if—
  • (a) pensions are payable to a person under rule E.1 or E.2 in respect of more than one deceased member, and
  • (b) the total reference service for the pensions exceeds the dependant’s maximum.
  • (2) In this rule “reference service” means—
  • (a) in the case of a pension calculated under rule E.3, the higher of the figures given by rule E.3(2)(a) and (b),
  • (b) in the case of a pension calculated under rule E.4, the figure by which the appropriate fraction of the member’s final pensionable earnings is multiplied under rule E.4(1), and
  • (c) in the case of a pension calculated under rule E.5—
  • (i) if the member’s pension was calculated under rule D.1(3), D.2(3) or D.7(2), the reckonable service mentioned in that rule,
  • (ii) if the member’s pension was calculated under rule D.4(4), the reckonable service used for the first calculation mentioned in that rule, and
  • (iii) if the member’s pension was calculated under rule D.5(4) or D.6(2), N for the purposes of that rule.
  • (3) In this rule “the dependant’s maximum” means—
  • (a) if none of the deceased members' reckonable service exceeded 35 years, 35 years,
  • (b) if one (and only one) of the deceased members' reckonable service exceeded 35 years, that member’s reckonable service (but not exceeding 37 1/3 years), and
  • (c) if two or more of the deceased members' reckonable service exceeded 35 years, the reckonable service of the member with the greatest reckonable service (but not exceeding 37 1/3 years).
  • (4) The total amount of the pensions payable as mentioned in paragraph (1) immediately after the death, excluding any amount that is attributable to any increase made as a result of rule D.10 (member’s option to exchange lump sum for pension), must not exceed such amount as results from the pensions being calculated by reference to the dependant’s maximum.
  • (5) In determining the amount of each of the pensions so payable to arrive at that total amount, the reference service for the pensions is to be reduced in such a manner as results in the greatest total amount.
  • (6) In determining for the purposes of the Scheme whether a pension is payable under rule E.1 or E.2, the fact that the amount of any pension that would otherwise be payable under that rule is reduced to nil as a result of this rule is to be disregarded.
E.8
  • (1) If a member dies leaving an eligible child, a pension is payable in respect of the child.
  • (2) If the child ceases to be an eligible child after the date of death, the pension ceases to be payable unless and until the child becomes an eligible child again.
  • (3) This rule is subject to—
  • (a) rule E.13 (children born after the member’s death), and
  • (b) rule E.14 (children entitled to three or more pensions).
E.9
  • (1) In these Rules “eligible child”, in relation to a deceased member, means—
  • (a) a child of the member who meets any of conditions A to C, or
  • (b) any other child or young person who—
  • (i) meets any of those conditions, and
  • (ii) was financially dependent on the member at the date of death.
  • (2) Condition A is that the person is aged under 18.
  • (3) Condition B is that the person is in full-time education or vocational training and is aged under 23.
  • (4) Condition C is that, because of physical or mental impairment—
  • (a) the person is, in the opinion of the Scheme administrator, unable to engage in full-time gainful employment; and
  • (b) the person was dependent on the member at the date of the death.
  • (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (5) A person who is aged under 19 on the date when he ceases to be in full-time education is treated as being in such education until the first of the following dates after he so ceases—
  • (a) the second Monday in January,
  • (b) the second Monday after Easter Monday,
  • (c) the second Monday in September,
  • (d) his 19th birthday,
  • (e) the date on which he becomes engaged full-time in gainful employment.
  • (6) A person who at the date of a member’s death is aged under 23 and taking a break from full-time education or vocational training not exceeding 15 months is assumed to be continuing in such education or training during the break for the purpose of determining—
  • (a) whether the person is an eligible child at that date, and
  • (b) how many pensions are payable under rule E.8(1) immediately after that date.
  • (7) A person who is prevented from continuing in full-time education or vocational training on account of ill-health is treated for the purposes of condition B and paragraph (5) as continuing to be in such education or training until he is no longer so prevented.
  • (8) Paragraph (7) does not apply at any time when the person’s health is such that it is reasonable to assume that he will not be capable of undertaking any further education or training.
  • (9) Nothing in paragraph (6) or (7) requires a pension to be paid in respect of a person during the break in his education or training.
E.10
  • (1) This rule applies for determining in the case of a deceased active member the annual amount of a pension payable under rule E.8(1) (surviving children’s pensions).
  • (2) The amount of such a pension is determined by reference to the amount (“the member’s assumed pension”) that is the annual pension to which the member would have been entitled under rule D.5 (early payment of benefits: active members with permanent serious ill-health) if he had become entitled to a pension under that rule on the date of death (see rule D.5(4) and (5)).
  • (3) If—
  • (a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) one pension is payable at that time under rule E.8(1),

the annual amount of the pension payable under rule E.8(1) is equal to one quarter of the member’s assumed pension.

  • (4) If—
  • (a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension payable under rule E.8(1) is equal to—

$$100-SA100×APN$where—SA is the amount of the pension payable under rule E.1 or E.2 (disregarding rules D.10, E.6 and E.7), expressed as a percentage of the member’s assumed pension,AP is the member’s assumed pension, andN is the number of pensions payable under rule E.8(1).$

  • (5) If—
  • (a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) one, two or three pensions are payable at that time under rule E.8(1),

the annual amount of each pension payable under rule E.8(1) is equal to one third of the member’s assumed pension.

  • (6) If—
  • (a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) four or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension payable under rule E.8(1) is equal to the member’s assumed pension, divided by the number of pensions payable under that rule.

  • (7) If—
  • (a) immediately before the member’s death he was entitled to exercise the option under rule G.3 or G.4 (aggregation of service),
  • (b) no pension is payable under rule E.1 or E.2, and
  • (c) the cost condition is met (see paragraph (8)),

these Rules apply as if the member had exercised that option before his death.

  • (8) The cost condition is that in the opinion of the Secretary of State the total cost of providing benefits in respect of the member under the Scheme and the AFPS 1975 would have been greater if he had exercised that option than if he had not (apart from paragraph (7)).
  • (9) In forming an opinion for the purposes of paragraph (8), the Secretary of State must—
  • (a) assume that in the case of each child in respect of whom a pension is payable under rule E.8(1), or under the AFPS 1975 by virtue of any entitlement in respect of the member as a deferred member of the AFPS 1975, the pension will be payable for the period of 5 years or, if longer, until the child reaches 18, and
  • (b) disregard the effect of the Pensions (Increase) Act 1971 in respect of any period after the date of death.
  • (10) If—
  • (a) a pension is payable under rule E.8(1) in respect of a child,
  • (b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (c) the pension under rule E.1 or E.2 ceases to be payable,

the annual amount of the pension payable under rule E.8(1) in respect of the child for any period after the date on which the pension under rule E.1 or E.2 ceases to be payable is calculated in accordance with paragraphs (5) to (9) as if no pension had been payable under rule E.1 or E.2 immediately after the date of the member’s death.

E.11
  • (1) This rule applies for determining in the case of a deceased deferred member the annual amount of a pension payable under rule E.8(1) (surviving children’s pensions).
  • (2) The amount of such a pension is determined by reference to the annual pension to which the member would have been entitled under rule D.2, on the assumption that the pension had become payable on the date of death (“the member’s deferred pension”).
  • (3) If—
  • (a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) one pension is payable at that time under rule E.8(1),

the annual amount of that pension is equal to one quarter of the member’s deferred pension.

  • (4) If—
  • (a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to—

$$100-SA100×DPN$where—SA is the amount of the pension payable under rule E.1 or E.2 (disregarding rules D.10, E.6 and E.7), expressed as a percentage of the member’s deferred pension,DP is the member’s deferred pension, andN is the number of pensions payable under rule E.8(1).$

  • (5) If—
  • (a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) one, two or three pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to one third of the member’s deferred pension.

  • (6) If—
  • (a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) four or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to the member’s deferred pension, divided by the number of pensions payable under rule E.8(1).

  • (7) If—
  • (a) a pension is payable under rule E.8(1) in respect of a child,
  • (b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (c) the pension under rule E.1 or E.2 ceases to be payable,

the annual amount of the pension payable under rule E.8(1) in respect of the child for any period after the date on which the pension under rule E.1 or E.2 ceases to be payable is calculated in accordance with paragraph (5) or (6) as if no pension had been payable under rule E.1 or E.2 immediately after the date of the member’s death.

E.12
  • (1) This rule applies for determining in the case of a deceased pensioner member the annual amount of a pension payable under rule E.8(1) (surviving children’s pensions).
  • (2) The amount of such a pension is determined by reference to the annual pension to which the member was entitled on the date of death (“the member’s pension”), except that—
  • (a) in a case where the member’s pension was increased under rule D.10 (option to exchange lump sum for pension), the member’s pension is taken for this purpose to exclude so much of the pension as is attributable to that increase, and
  • (b) where that option was exercised so as to increase the pension under rule E.8(1), this rule is without prejudice to that increase.
  • (3) If—
  • (a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) one pension is payable at that time under rule E.8(1),

the annual amount of that pension is equal to one quarter of the member’s pension.

  • (4) If—
  • (a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to—

$$100-SA100×PN$where—SA is the amount of the pension payable under rule E.1 or E.2 (disregarding any increase or reduction made by virtue of rule D.10, D.16, E.6 or E.7), expressed as a percentage of the member’s pension,P is the member’s pension, andN is the number of pensions payable under rule E.8(1).$

  • (5) If—
  • (a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) one, two or three pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to the one third of the member’s pension.

  • (6) If—
  • (a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (b) four or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to the member’s pension, divided by the number of pensions payable under rule E.8(1).

  • (7) If—
  • (a) a pension is payable under rule E.8(1) in respect of a child,
  • (b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and
  • (c) the pension under rule E.1 or E.2 ceases to be payable,

the annual amount of the pension payable under rule E.8(1) in respect of the child for any period after the date on which the pension under rule E.1 or E.2 ceases to be payable is calculated in accordance with paragraph (5) or (6) as if no pension had been payable under rule E.1 or E.2 immediately after the date of the member’s death.

E.13
  • (1) For the purposes of rule E.8(1), a member is only treated as leaving a child who is born after the member’s death if the child is born before the first anniversary of the member’s death.
  • (2) No pension is payable under that rule in respect of any period before the child’s birth.
  • (3) But a pension in respect of a child born after the member’s death is treated as payable in respect of that period in determining the number of pensions payable immediately after the date of the member’s death for the purposes of rules E.10(3), (4), (5) and (6), E.11(3), (4), (5) and (6) and E.12(3), (4), (5) and (6) (amount of children’s pensions).
E.14
  • (1) This rule applies if, apart from this rule, pensions would be payable in respect of the same child under rule E.8 as a result of the death of more than two members.
  • (2) Only the pensions payable as a result of the death of two of the members and which together result in the payment of the greatest annual amount in respect of the child are payable.
  • (3) Rule E.27(3) (under which benefits are payable in respect of dual capacity members under this Part as if two or more members of the kinds in question had died and the amounts payable are determined accordingly) does not apply for the purpose of determining for this rule the number of members as a result of whose deaths pensions are payable.
  • (4) But the amount of the pensions payable as the result of the death of any member to whom that rule applies are calculated in accordance with rule E.27 before applying paragraph (2).
E.15
  • (1) If a member dies before reaching the age of 75, the Secretary of State may pay a lump sum to any of the following—
  • (a) the person or persons nominated by the member in accordance with rule E.21;
  • (b) if there is no person within sub-paragraph (a), to any person who is entitled to a pension under rule E.1 in respect of the member, or to whom a pension may be awarded under rule E.2 in respect of the member;
  • (c) if there is no person within sub-paragraph (a) or (b), to any person who, but for the application of rule E.1(2) or rule E.2(2), would be so entitled or to whom a pension may be awarded; or
  • (d) if there is no person within sub-paragraphs (a), (b) or (c), to the member’s personal representatives.
  • (2) If two or more persons have been so nominated and the Secretary of State decides to pay the lump sum to them—
  • (a) the payment is to be made to them in such proportions as the member has specified in the nomination, or
  • (b) if no proportions are so specified, in such proportions as the Secretary of State considers appropriate.
  • (3) This rule does not apply if—
  • (a) the member is—
  • (i) a pensioner member, or
  • (ii) a pension credit member who dies after any benefits attributable to his pension credit have become payable, and
  • (b) the death takes place—
  • (i) more than five years after the member’s pension becomes payable, or
  • (ii) after the member’s pension has been commuted under rule J.8 (commutation of small pensions).
  • (4) A lump sum paid under this rule may not be paid more than two years after the day on which the Scheme administrator first knew, or could reasonably be expected to have known, of the member’s death.
  • (5) The annual amount of pension paid to a person under this Part shall be increased by such amount as the Defence Council, after consulting with the Scheme actuary, may determine, if—
  • (a) the Defence Council have determined that a lump sum should be paid to the person under this Part, but the lump sum is not paid within two years of the date of the death; or
  • (b) the Defence Council have determined that, but for paragraph (1), a lump sum would have been paid to the person.
E.16
  • (1) In the case of an active member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to the member’s final pensionable earnings, multiplied by four.
E.17
  • (1) In the case of a deceased deferred member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to the amount of the lump sum to which the member would have become entitled under rule D.2 if the member had become entitled to a lump sum under that rule on the date of death.
E.18
  • (1) In the case of a deceased pensioner member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to—

$$A-B$where—A is the amount of the pension that would have been payable to the member during so much of the period of five years beginning with the date on which the pension became payable as falls after the date of death, andB is the amount of any lump sum paid to the member under rule D.1, D.2, D.4, D.5, D.6 or D.7.$

  • (2) Any increases in the pension which might have become payable after the date of death are disregarded for the purposes of paragraph (1).
  • (3) If the member was both a pensioner member and an active member, the amount payable under rule E.16 is payable instead of the amount under paragraph (1).
E.19
  • (1) In the case of a pension credit member who dies before any benefits derived from his pension credit have become payable, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is calculated by multiplying by 3 the amount of the annual pension that would have been payable to him under rule D.3 if that pension had become payable to him on the date of his death.
  • (2) In the case of a pension credit member who dies after the pension under rule D.3 becomes payable, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to—

$$A-Bwhere—$where—A is the amount of the pension that would have been payable to the member during so much of the period of five years beginning with the date on which the pension became payable as falls after the date of death, andB is the amount of any lump sum paid to the member under rule D.3 or D.4.$

  • (3) Any increases in the pension which might have become payable after the date of death are disregarded for the purposes of paragraph (2).
E.20
  • (1) This rule applies where on a member’s death the Secretary of State is required under a court order to pay any part of any amount payable under rule E.15 to the member’s former spouse or civil partner.
  • (2) Where this rule applies the amount payable under that rule is determined as if no such order had been made, and then this Part applies as if the amount payable under rule E.15 were reduced by the amount payable under the court order.
E.21
  • (1) For the purposes of rule E.15 (death of a member: lump sum benefits)—
  • (a) a member may nominate one or more persons, and
  • (b) if he nominates two or more persons, he may specify in the nomination the proportions of the payment he wishes each of them to receive.
  • (2) The member must make his nomination by notice in writing to the Scheme administrator in such form as the Secretary of State may require or is willing to accept.
  • (3) A member may revoke or alter a nomination by a further notice in writing to the Scheme administrator in such form as the Secretary of State may require or is willing to accept.
  • (4) The nomination of a person is invalid—
  • (a) if—
  • (i) the person nominated is an individual who was the spouse or civil partner of the member at the date the nomination was made and is not the spouse or civil partner of the member immediately before the member’s death, and
  • (ii) the member did not confirm the nomination by notice in writing to the Scheme administrator after the marriage or civil partnership ended, or
  • (b) if the person nominated is an individual who predeceases the member.
  • (5) If a person nominated is convicted of the offence of murder or manslaughter of the member, the person’s nomination is to be treated as invalid from the member’s death.
  • (6) If a person nominated is convicted of any other offence of which the unlawful killing or wounding of the member is an element, the Secretary of State may determine that the nomination is to be treated as invalid from the member’s death.

Closure of Scheme and transitional provision

5
  • (1) Schedule 2 (Transitional Provision) has effect.
  • (2) After 31st March 2015, the Scheme is closed to new members except where provided for in Schedule 2.

SCHEDULE 2 — Transitional Provision

PART 1 — Interpretation

Interpretation

1

In this Schedule—

  • “AFPS 2005” means the Armed Forces Pension Scheme 2005;
  • “AFPS 2015” means the scheme established by the AFP Regulations 2014;
  • “AFP Regulations 2014” means the Armed Forces Pension Regulations 2014;
  • “continuity of service” in relation to a transition member has the meaning given in paragraph 2;
  • “club transfer” means a transfer to or from the AFPS 2005 under the club transfer arrangements;
  • “club transfer arrangements” means arrangements approved by the manager of the AFPS 2015 as providing reciprocal arrangements between that scheme, any connected scheme and other registered occupational pension schemes for making and receiving club transfer value payments;

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