The Armed Forces Pension Regulations 2014
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Change 1
55 Annual rate of ill-health pension: active members with significant impairment of capacity for gainful employment
(1) The annual rate of an ill-health pension payable under regulation 52 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment) is calculated in accordance with regulation 45 (annual rate of pension payable to active member who becomes pensioner member), in the same way as the annual rate of retirement earned pension is calculated, but— (a) the references to the member’s retirement earned pension are taken to be references to the enhancement value of the earnings-related part of that pension; and (b) the early payment reduction is not subtracted. (2) In this regulation— “the earnings-related part”, in relation to the member’s retirement earned pension, means the proportion of that pension not attributable to a transferred pension; “the enhancement value” means the value arrived at by multiplying A by B, where— A is the member’s retirement earned pension divided by the sum of— for all years up to the last active scheme year, the number of scheme years (or parts of scheme years) for which amounts of earned pension were specified in the active member’s account; and in the last active scheme year, the number of calendar days (expressed as a proportion of a year), where the member was eligible for active membership; and B is X plus N, where— X is the sum of— for all years up to the last active scheme year, the number of scheme years (or parts of scheme years) for which amounts of earned pension were specified in the active member’s account; and in the last active scheme year, the number of calendar days (expressed as a proportion of a year), where the member was eligible for active membership; and N is one-third of the number of years (or part of years) from the last day of pensionable service until normal pension age (both X and N to be expressed as a number of years). (3) The annual rate of any added pension payable under regulation 52 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment) is calculated in accordance with regulation 45 (annual rate of pension payable to active member who becomes pensioner member) in the same way as the annual rate of retirement added pension is calculated. (4) The annual rate of any club transfer pension payable under regulation 52 is calculated in accordance with regulation 45 in the same way as the annual rate of retirement club transfer pension is calculated. (5) For members who have served on flexible terms, when calculating the enhancement value, for the purposes of A and X— (a) for all years up to the last active year, all scheme years or any parts of a scheme year (expressed as a proportion of a year) during any period of flexible service for which amounts of earned pension were specified in the members account, are reduced by the service reduction percentage applicable to that period of flexible service; and (b) if the member was serving on flexible terms during the last active scheme year, the number of calendar days (expressed as a proportion of a year) during any period of flexible service when the member was eligible for active membership, are reduced by the service reduction percentage applicable to that period of flexible service.
55 Annual rate of ill-health pension: active members with significant impairment of capacity for gainful employment
(1) The annual rate of an ill-health pension payable under regulation 52 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment) is calculated in accordance with regulation 45 (annual rate of pension payable to active member who becomes pensioner member), in the same way as the annual rate of retirement earned pension is calculated, but— (a) the references to the member’s retirement earned pension are taken to be references to the enhancement value of the earnings-related part of that pension; and (b) the early payment reduction is not subtracted. (2) In this regulation— “the earnings-related part”, in relation to the member’s retirement earned pension, means the proportion of that pension not attributable to a transferred pension; “the enhancement value” means the value arrived at by multiplying A by B, where— A is the member’s retirement earned pension divided by the sum of— for all years up to the last active scheme year, the number of scheme years (or parts of scheme years) for which amounts of earned pension were specified in the active member’s account; and in the last active scheme year, the number of calendar days (expressed as a proportion of a year), where the member was eligible for active membership; and B is X plus N, where— X is the sum of— for all years up to the last active scheme year, the number of scheme years (or parts of scheme years) for which amounts of earned pension were specified in the active member’s account; and in the last active scheme year, the number of calendar days (expressed as a proportion of a year), where the member was eligible for active membership; and N is one-third of the number of years (or part of years) from the last day of pensionable service until normal pension age (both X and N to be expressed as a number of years). (3) The annual rate of any added pension payable under regulation 52 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment) is calculated in accordance with regulation 45 (annual rate of pension payable to active member who becomes pensioner member) in the same way as the annual rate of retirement added pension is calculated. (4) The annual rate of any club transfer pension payable under regulation 52 is calculated in accordance with regulation 45 in the same way as the annual rate of retirement club transfer pension is calculated. (5) For members who have served on flexible terms, when calculating the enhancement value, for the purposes of A and X— (a) for all years up to the last active year, all scheme years or any parts of a scheme year (expressed as a proportion of a year) during any period of flexible service for which amounts of earned pension were specified in the members account, are reduced by the service reduction percentage applicable to that period of flexible service; and (b) if the member was serving on flexible terms during the last active scheme year, the number of calendar days (expressed as a proportion of a year) during any period of flexible service when the member was eligible for active membership, are reduced by the service reduction percentage applicable to that period of flexible service.
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