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The Armed Forces Pension Scheme Order 2005

As Enacted Cited authorities 86 Cited in Amendments 15 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2005/438
Year2005

2005 No. 438

PENSIONS

The Armed Forces Pension Scheme Order 2005

Made 8th March 2005

Laid before Parliament 14th March 2005

Coming into force 6th April 2005

The Secretary of State for Defence, in exercise of the powers conferred upon him by sections 1(1) and (3), 3 and 10(2), (3) and (4) of the Armed Forces (Pensions and Compensation) Act 20041hereby makes the following Order:

Preliminary

Preliminary

S-1 Citation and commencement and interpretation

Citation and commencement and interpretation

1. This Order may be cited as the Armed Forces Pension Scheme Order 2005 and comes into force on 6th April 2005.

S-2 Establishment of the Armed Forces Pension Scheme 2005

Establishment of the Armed Forces Pension Scheme 2005

2.—(1) The Scheme set out in Schedule 1 to this Order has effect and is to be known as “the Armed Forces Pension Scheme 2005”.

(2) But that Scheme has effect—

(a)

(a) for the period beginning with 6th April 2005 and ending with 5th April 2006 with the modifications specified in Schedule 2 to this Order,

(b)

(b) for the period before section 1 of the Civil Partnership Act 20042comes into force in relation to England and Wales with the omission of references to civil partners and civil partnerships, and

(c)

(c) for the period before Chapter 5 of Part 4 of the Pension Schemes Act 19933comes into force in relation to England and Wales with the omission of references to that Chapter, rights under it and members to whom it applies as such.

S-3 Amendments of the Armed Forces Pension Scheme 2005

Amendments of the Armed Forces Pension Scheme 2005

3.—(1) For the purposes of section 3(2) of the Armed Forces (Pensions and Compensation) Act 2004, so far as it applies to the Armed Forces Pension Scheme 2005, the consent requirements are as follows.

(2) The Secretary of State may not make a modification of the Scheme which would or might adversely affect any entitlement, accrued rights or pension credit rights of any member acquired before the power to modify the Scheme is exercised unless—

(a)

(a) he has taken the steps specified in paragraphs (3) to (5) and obtained the written consent of the member, or

(b)

(b) paragraph (6) applies.

(3) The Secretary of State must give written notice to the member that it is proposed to modify the Scheme in a manner which will or might adversely affect an entitlement, accrued rights or pension credit rights of the member that have been acquired before the modification is to take effect.

(4) The notice must—

(a)

(a) set out the modifications proposed to be made which would or might adversely affect any such entitlement or rights, and

(b)

(b) contain an explanation of their effects.

(5) The notice must contain a statement that the modifications will not affect any such entitlement or rights unless—

(a)

(a) the member has consented in writing to the modifications, or

(b)

(b) paragraph (6) applies.

(6) This paragraph applies if—

(a)

(a) the Secretary of State has sent two copies of the notice to the member’s last known address, the second being sent at least 2 months after the first, and

(b)

(b) no response has been received from the member to either of the notices before the end of the period of one month beginning with the date on which the second was sent.

(7) In this regulation “accrued rights”, “entitlement”, “member” and “pension credit rights” have the same meaning as in Part 1 of the Pensions Act 19954(see section 124 of that Act).

S-4 Amendments of other regulations

Amendments of other regulations

4.—(1) Regulation 1(2) of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 19975is amended as follows.

(2) At the end of the definition of “Armed Forces Pension Scheme” insert the words “or section 1(1) of the Armed Forces (Pensions and Compensation) Act 2004”.

Ivor Caplin

Under Secretary of State Ministry of Defence

8th March 2005

SCHEDULE 1

Article 2(1)

ARRANGEMENT OF RULES

INTERPRETATION ETC.

PART A

INTERPRETATION ETC.

SCH-1.A.1

A.1. Interpretation: general

SCH-1.A.2

A.2. Meaning of “pensionable earnings”

SCH-1.A.3

A.3. Meaning of “assumed pay”

SCH-1.A.4

A.4. Meaning of “final pensionable earnings”

SCH-1.A.5

A.5. Adjustments for inflation in determining final pensionable earnings

SCH-1.A.6

A.6. Active membership period

SCH-1.A.7

A.7. Qualifying service

SCH-1.A.8

A.8. Reckonable service

SCH-1.A.9

A.9. Calculation of periods of membership or service etc.

SCH-1.A.10

A.10. Disregard of short breaks in service

MEMBERSHIP

PART B

MEMBERSHIP

SCH-1.B.1

B.1. Eligibility: general

SCH-1.B.2

B.2. Persons with other pension arrangements

SCH-1.B.3

B.3. Joining the Scheme on starting service

SCH-1.B.4

B.4. Joining the Scheme after service begins

SCH-1.B.5

B.5. Leaving the Scheme

100 CONTRIBUTIONS

PART C

CONTRIBUTIONS

Buying Added Years

Buying Added Years

SCH-1.C.1

C.1. Member’s option to pay contributions to increase service

SCH-1.C.2

C.2. Cancellation of options

SCH-1.C.3

C.3. Effect of making contributions

SCH-1.C.4

C.4. Absence from work

SCH-1.C.5

C.5. Restriction on pension debit members making contributions

SCH-1.C.6

C.6. Purchase of added years for members seconded to NATO or the UNetc.

Repayment of Contributions

Repayment of Contributions

SCH-1.C.7

C.7. Repayment of contributions

RETIREMENT BENEFITS

PART D

RETIREMENT BENEFITS

Entitlement To Benefits

Entitlement To Benefits

SCH-1.D.1

D.1. Retirement after reaching pension age

SCH-1.D.2

D.2. Retirement before reaching pension age

SCH-1.D.3

D.3. Pension credit members' pensions

SCH-1.D.4

D.4. Early payment of pensions with actuarial reduction

SCH-1.D.5

D.5. Early payment of benefits: active members with permanent serious ill-health

SCH-1.D.6

D.6. Early payment of benefits: active members with significant impairment of capacity for gainful employment

SCH-1.D.7

D.7. Early payment of benefits: deferred members with permanent serious ill-health

SCH-1.D.8

D.8. Member’s requests for review of ill-health awards

SCH-1.D.9

D.9. Secretary of State’s power to review ill-health awards

Options to Change Benefits

Options to Change Benefits

SCH-1.D.10

D.10. Option to exchange lump sum for pension

SCH-1.D.11

D.11. Option for members in serious ill-health to exchange whole pension for lump sum

Pension Debit Members and Pension Credit Members

Pension Debit Members and Pension Credit Members

SCH-1.D.12

D.12. Reduction in pension debit member’s benefits

SCH-1.D.13

D.13. Pension credit member’s rights

Allocation

Allocation

SCH-1.D.14

D.14. Election to allocate pension

SCH-1.D.15

D.15. Procedure for election under rule D.14

SCH-1.D.16

D.16. Effect of allocation

Contracting-out Obligations (GMPs etc.)

Contracting-out Obligations (GMPs etc.)

SCH-1.D.17

D.17. Guaranteed minimum pensions etc.

DEATH BENEFITS

PART E

DEATH BENEFITS

Pensions for Adult Dependants

Pensions for Adult Dependants

SCH-1.E.1

E.1. Surviving spouses' and civil partners' pensions

SCH-1.E.2

E.2. Other adult dependants' pensions

SCH-1.E.3

E.3. Amount of pensions under rules E.1 and E.2: active members

SCH-1.E.4

E.4. Amount of pensions under rules E.1 and E.2: deferred members

SCH-1.E.5

E.5. Amount of pensions under rules E.1 and E.2: pensioner members

SCH-1.E.6

E.6. Reduction in pensions under rules E.1 and E.2 in cases of wide age disparity

SCH-1.E.7

E.7. Adult dependants entitled to two or more pensions under this Part

Pensions for Eligible Children

Pensions for Eligible Children

SCH-1.E.8

E.8. Surviving children’s pensions

SCH-1.E.9

E.9. Meaning of “eligible child”

SCH-1.E.10

E.10. Amount of children’s pension under rule E.8: active members

SCH-1.E.11

E.11. Amount of children’s pension under rule E.8: deferred members

SCH-1.E.12

E.12. Amount of children’s pension under rule E.8: pensioner members

SCH-1.E.13

E.13. Children born after the member’s death

SCH-1.E.14

E.14. Children entitled to three or more pensions

Lump Sum Death Benefits

Lump Sum Death Benefits

SCH-1.E.15

E.15. Death of a member: lump sum benefit

SCH-1.E.16

E.16. Amount of lump sum benefit under rule E.15: active members

SCH-1.E.17

E.17. Amount of lump sum benefit under rule E.15: deferred members

SCH-1.E.18

E.18. Amount of lump sum benefit under rule E.15: pensioner members

SCH-1.E.19

E.19. Amount of lump sum benefit under rule E.15: pension credit members

SCH-1.E.20

E.20. Members affected by court orders to former spouses and civil partners on death

SCH-1.E.21

E.21. Nominations for lump sum death benefits

General Provisions

General Provisions

SCH-1.E.22

E.22. Pension debit members

SCH-1.E.23

E.23. Dependants' pensions: suspension and recovery

SCH-1.E.24

E.24. Recovery of lump sum payments made to nominee

SCH-1.E.25

E.25. Provisional awards of children’s pensions: later adjustments

SCH-1.E.26

E.26. Payments under this Part

SCH-1.E.27

E.27. Dual capacity membership

SCH-1.E.28

E.28. Guaranteed minimum pensions for surviving spouses

TRANSFERS

PART F

TRANSFERS

Transfers Out

Transfers Out

SCH-1.F.1

F.1. Right to transfer value payment

SCH-1.F.2

F.2. Applications for statements of entitlement

SCH-1.F.3

F.3. Applications for transfer value payments

SCH-1.F.4

F.4. Ways in which transfer value payments may be applied

SCH-1.F.5

F.5. Calculating amounts of transfer value payments

SCH-1.F.6

F.6. Effect of transfers-out

Transfers In

Transfers In

SCH-1.F.7

F.7. Right to apply for acceptance of transfer value payment from another scheme

SCH-1.F.8

F.8. Procedure for applications under rule F.7

SCH-1.F.9

F.9. Acceptance of transfer value payments

SCH-1.F.10

F.10. Calculation of transferred-in reckonable service

Miscellaneous Provisions

Miscellaneous Provisions

SCH-1.F.11

F.11. Public sector transfer arrangements

RE-EMPLOYMENT

PART G

RE-EMPLOYMENT

Preliminary

Preliminary

SCH-1.G.1

G.1. Application of Part G

Treatment of Separate Periods of Service: Options to Aggregate

Treatment of Separate Periods of Service: Options to Aggregate

SCH-1.G.2

G.2. General rule: periods of service treated separately

SCH-1.G.3

G.3. Option to aggregate earlier membership: previous members of the Scheme

SCH-1.G.4

G.4....

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