Law

The Armed Forces Pension Regulations 2014

United Kingdom · regulation

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In force since 2026-06-11, as the publisher states.

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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 139 provisions
  1. Title and introductory text
  2. 1 Citation and commencement
  3. 2 Establishment of scheme
  4. 3 Interpretation
  5. 4 Scheme manager
  6. 5 Establishment of pensions board
  7. 6 Membership of the pensions board
  8. 7 Terms of appointment to pensions board
  9. 8 Conflict of interest: pensions board
  10. 9 Establishment of scheme advisory board
  11. 10 Membership of the scheme advisory board
  12. 11 Terms of appointment to the scheme advisory board
  13. 12 Conflict of interest: scheme advisory board
  14. 13 Description of persons in scheme employment
  15. 14 Dual capacity membership
  16. 15 Payments of benefits to dual capacity members
  17. 16 Eligibility for active membership
  18. 17 Deferred membership
  19. 18 Option not to join scheme
  20. 19 Option to leave the scheme
  21. 20 Option to join the scheme
  22. 21 Pensionable service
  23. 22 Qualifying service
  24. 23 Pensionable earnings
  25. 23A “Meaning of “service reduction percentage”
  26. 24 Meaning of “assumed pay”
  27. 25 Calculation of amount of accrued pension for the purposes of Parts 4 and 5
  28. 25A Calculation of “index supplement”
  29. 26 Calculation of “retirement index adjustment”
  30. 26A Calculation of “retirement index supplement”
  31. 27 Establishment of pension accounts: general
  32. 28 Closure and adjustment of pension accounts on transfer out
  33. 29 Establishment of an active member’s account
  34. 30 Receipt of transfer values
  35. 31 Receipt of club transfer values
  36. 32 Account to specify amount of pension for a scheme year
  37. 33 Account to specify opening balance and index adjustment
  38. 34 Establishment of a deferred member’s account
  39. 35 Account to specify provisional amount of deferred pension
  40. 36 Adjustment of provisional amount of deferred pension on retirement
  41. 37 Treatment of deferred member’s account on return to pensionable service
  42. 38 Establishment of a pensioner member’s account
  43. 39 Determination of “in-service late payment supplement”
  44. 40 Account to specify amount of retirement pension
  45. 41 Establishment of a pension credit member’s account
  46. 42 Separate accounts for dual capacity pension credit member
  47. 43 Retirement on or after reaching normal pension age – active members
  48. 44 Retirement before reaching normal pension age – deferred members
  49. 45 Annual rate of pension payable to active member who becomes pensioner member
  50. 46 Annual rate of pension payable to deferred member who becomes pensioner member
  51. 47 Pension credit member’s pension
  52. 48 Annual rate of pension credit member’s pension
  53. 49 Pension credit member’s rights
  54. 50 Reduction in pension debit member’s benefits
  55. 51 Entitlement to ill-health pension: active member with permanent serious ill-heath
  56. 52 Entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment
  57. 53 Deferment of accrued earned pension attributable to a transfer payment
  58. 54 Annual rate of ill-health pension: active members with permanent serious ill-health
  59. 55 Annual rate of ill-health pension: active members with significant impairment of capacity for gainful employment
  60. 56 Entitlement to ill-health pension: deferred member with permanent serious ill-health
  61. 57 Scheme manager’s review of ill-health awards
  62. 58 Member’s request for review of ill-health awards
  63. 59 General option to exchange part of the pension for lump sum
  64. 60 Option for members in serious ill-health to exchange whole pension for lump sum
  65. 61 Election to allocate pension
  66. 62 Procedure for allocation election
  67. 63 Effect of allocation
  68. 64 Adjustment of allocated benefits for the Finance Act 2004 where member dies over 75
  69. 65 Surviving spouses’ and civil partners’ pensions
  70. 66 Guaranteed minimum pension for surviving spouses and civil partners
  71. 67 Other adult dependants’ pensions
  72. 68 Annual rate of adult dependants’ pensions payable on death of pensioner member
  73. 69 Annual rate of adult dependants’ pensions payable on death of deferred member
  74. 70 Annual rate of adult dependants’ pensions payable on death of active member
  75. 71 Reduction in pensions in case of wide age disparity
  76. 72 Surviving children’s pensions
  77. 73 Meaning of “eligible child”
  78. 74 Annual rate of children’s pensions
  79. 75 Children born after the member’s death
  80. 76 Meaning of “final pensionable earnings”
  81. 77 Earnings adjustments in determining final pensionable earnings
  82. 78 Death of a member: lump sum benefit
  83. 79 Lump sum amount payable on death of active member
  84. 80 Lump sum amount payable on death of deferred member
  85. 81 Lump sum amount payable on death of pensioner member
  86. 82 Lump sum amount payable on death of pension credit member
  87. 83 Members affected by court orders to former spouses and civil partners on death
  88. 84 Nominations for lump sum death benefits
  89. 85 Pension debit members
  90. 86 Dependants’ pensions and children’s pensions: suspension and recovery
  91. 87 Recovery of lump sum payments made to nominees
  92. 88 Provisional awards of children’s pensions: later adjustments
  93. 89 Payments under this Part
  94. 90 Payment of death benefits to dual capacity member
  95. 91 Member’s option to make periodical contributions to purchase added pension
  96. 92 Member’s option to pay lump sum contributions to purchase pension
  97. 93 Cancellation of options to made periodical contributions
  98. 94 Periodical contributions: special cases
  99. 95 Crediting of added pension: death in service or medical discharge
  100. 96 Repayment of contributions
  101. 97 Members seconded to NATO or the UN etc
  102. 97A Members seconded to NATO or the UN etc: transition member secondees
  103. 98 Interpretation
  104. 99 Right to require payment of a transfer value
  105. 100 Applications for statements of entitlement
  106. 101 Applications for a transfer value payment
  107. 102 Calculating amount of the transfer value
  108. 103 Ways in which a transfer value payment may be used
  109. 104 Effect of transfers out
  110. 105 Interpretation
  111. 106 Rights to request acceptance of transfer value payment
  112. 107 Procedure for making a request
  113. 108 Transfer statement
  114. 109 Amount of transferred pension
  115. 110 Club transfer value statement
  116. 111 Amount of club transfer earned pension
  117. 112 EU and overseas transfers
  118. 113 Appointment of scheme actuary and actuarial valuations
  119. 114 Employer cost cap
  120. 115 Late payment of retirement index adjustment
  121. 116 Commutation of small pensions
  122. 117 Scheme administrator for purposes of the Finance Act 2004
  123. 118 Reduction of benefits where lifetime allowance charge payable
  124. 119 Payment on behalf of members of annual allowance charge
  125. 120 Reduction of benefits where annual allowance charge paid by scheme manager
  126. 121 Forfeiture of benefits
  127. 122 Events enabling forfeiture
  128. 123 Procedure, references etc
  129. 124 Pension ceases to be payable
  130. 125 Re-employment after ill health awards
  131. 126 Payment of benefits
  132. 127 False statements etc about ill-health
  133. 128 Non assignability
  134. 129 General prohibition on unauthorised payments
  135. 130 Calculation of periods of membership and service
  136. 131 Determination of questions
  137. 132 Information and evidence
  138. 133 Provision of benefit information statements to members
  139. Schedule Remediable Service

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139 provisions

116 Commutation of small pensions

(1) This regulation applies if— (a) a person’s entitlement to a pension under this scheme does not exceed the small pensions commutation maximum; (b) a dual capacity member’s total pension entitlement under this scheme does not exceed the small pensions commutation maximum; or (c) the total pension entitlement under this scheme of a surviving adult dependant or an eligible child of a dual capacity member does not exceed the small pensions commutation maximum. (2) The scheme manager may pay the person a lump sum of such an amount as the scheme manager after consultation with the scheme actuary advises represents the capital value of the pension if— (a) the person consents to receipt of a lump sum in respect of the pension; and (b) the commutation requirements are met. (3) The payment of a lump sum under this regulation in respect of a pension discharges all liabilities under these Regulations in respect of that pension. (4) In this regulation— “the small pensions commutation maximum” means the amount that is permitted to be commuted, having regard to all the commutation requirements that apply in the circumstances in question; and “the commutation requirements” means requirements permitting the commutation of small pensions that are imposed by— regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997; paragraph 7 of Schedule 29 to the FA 2004 (which defines trivial commutation lump sums for the purposes of Part 4 of that Act) and, in relation to a pension payable under Part 6 (death benefits), by paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of that Part); or regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations 2000.

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117 Scheme administrator for purposes of the Finance Act 2004

(1) The scheme manager is appointed to be responsible for all functions that are functions conferred or imposed on a scheme administrator by or under Part 4 of the FA 2004. (2) In this regulation ‘scheme administrator’ has the meaning given in Part 4 of the FA 2004.

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118 Reduction of benefits where lifetime allowance charge payable

(1) This regulation applies if— (a) an event that is a benefit crystallisation event listed in the table in section 216(1) of the FA 2004 (“the table”) occurs in relation to a member; (b) the member and scheme manager are jointly and severally liable in relation to that event. (2) If this regulation applies— (a) the scheme manager must pay the lifetime allowance charge 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 in that table, 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 manager, having consulted the scheme actuary, fully reflects the amount of the lifetime allowance charge so paid and is consistent with normal actuarial practice.

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119 Payment on behalf of members of annual allowance charge

(1) The scheme manager must provide a member with information about the payment of an annual allowance charge under section 227 of FA 2004 if the member’s total pension input amount for that tax year exceeds the amount of the annual allowance for that tax year. (2) The member may request the scheme manager to pay the charge in respect of this scheme on the member’s behalf. (3) Such a request must be made by notice in writing in such form and subject to such conditions as the scheme manager requires.

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120 Reduction of benefits where annual allowance charge paid by scheme manager

(1) If the scheme manager pays the annual allowance charge on a member’s behalf, the amount or value of the benefits payable to or in respect of the member must be reduced. (2) The amount or value of the reduction of benefits must be such that in the opinion of the scheme manager, having consulted with the scheme actuary, it fully reflects the amount of the charge so paid and is consistent with normal actuarial practice.

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121 Forfeiture of benefits

(1) The Secretary of State may withhold benefits payable under this scheme in respect of a member to whom paragraph (1) of regulation 122 (events enabling forfeiture) applies to such extent as the Secretary of State considers appropriate. This is subject to paragraphs (3) and (4). (2) The Secretary of State may withhold pension benefits payable under Part 5 to a person to whom paragraph (2) of regulation 122 (events enabling forfeiture) applies to such extent as the Secretary of State considers appropriate; and if the whole of a person’s benefits are so withheld that Part applies as if that person had predeceased the member. This is subject to paragraph (4). (3) If the member has a guaranteed minimum under section 14 of the PSA 1993 in relation to service by reference to which he is entitled to benefits under the scheme, paragraph (1) only applies to so much of the member’s pension as exceeds that guaranteed minimum, unless regulation 122 (1)(a) or (b)(conviction of treason or other national security offences) applies. (4) If the case of a pension payable to the surviving spouse of a member, paragraph (1) and (2) are subject to regulation 66 (guaranteed minimum pensions for surviving spouses and civil partners). (5) Where regulation 122 (1)(c) (monetary obligations) applies— (a) If the amount of the obligation is in dispute, paragraph (1) only applies if the obligation has become enforceable— (i) under an order of a competent court; or (ii) in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement by the parties) by the sheriff; (b) only benefits to which the member alone is entitled may be withheld; and (c) the benefits withheld must not exceed the amount of the monetary obligation or, if less, the value of the person’s entitlement or the accrued right in question (as determined under section 93(2) of the Pensions Act 1995). (6) This regulation is without prejudice to— (a) section 2 of the Forfeiture Act 1870 (under which forfeiture is required in cases of treason, subject to whole or partial restoration under section 70(2) of the Criminal Justice Act 1948); or (b) so far as it has effect in relation to benefits under the scheme, section 24 of the Chelsea and Kilmainham Hospitals Act 1826.

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122 Events enabling forfeiture

(1) This paragraph applies to a member, who is an active member, a deferred member or a pensioner member, if the member— (a) is convicted of treason or of one or more offences under the Official Secrets Acts 1911 to 1989 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the member has been sentenced on the same occasion— (i) to a term of imprisonment of at least 10 years; or (ii) to two or more consecutive terms amounting in the aggregate to at least 10 years, (b) is convicted of an offence in connection with the service that qualifies the member to belong to the scheme which the Secretary of State considers to have been gravely injurious to the defence, security or other interests of the State; or (c) has after becoming a member of the scheme incurred a monetary obligation to the Crown which— (i) arises out of a criminal, negligent or fraudulent act or omission by the member, and (ii) arises out of or in connection with his service in the armed forces. (2) This paragraph applies to a person who is convicted of the murder or manslaughter of the member or any other offence which involves the unlawful killing of the member. (3) In paragraph (2) “unlawful killing” includes unlawfully aiding, abetting, counselling or procuring the death.

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123 Procedure, references etc

(1) If the Secretary of State proposes to withhold a person’s benefits under regulation 121 (forfeiture of benefits) the Secretary of State must notify the person in writing that he proposes to do so. (2) Such a notification must give the person information about rights under— (a) the arrangements established by the Secretary of State for the resolution of disputes relating to the scheme that are in force at the time the notification is given; and (b) Part 10 of the PSA 1993 (investigations: the Pensions Ombudsman), in respect of any decision made under regulation 121 (forfeiture of benefits). (3) If the Secretary of State withholds benefits under regulation 121 (forfeiture of benefits) in a case where regulations 122(1)(c) (monetary obligation) applies, the member must be given a certificate showing any amount withheld and the effect of its being withheld on the member’s benefits under the scheme. (4) The Secretary of State— (a) may refer the question whether benefits of a person to whom regulation 121(2) (conviction of member) applies should be withheld to the Social Security Commissioner; and (b) must refer that question if the person to whom that rule applies or an eligible child of the member requests the Secretary of State to do so.

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124 Pension ceases to be payable

(1) A pension ceases to be payable to a member who re-enters pensionable service within 28 days after the last day of the service in respect of which the pension was payable (“earlier service”). (2) If paragraph (1) applies in relation to a member, the scheme manager must— (a) cease to pay the pension; and (b) recover any overpayment made. (3) The member becomes a deferred member in respect of the earlier service. (4) The scheme manager must close the pension member’s account and establish a deferred member’s account in respect of the earlier service. (5) The scheme manager must credit to the deferred member’s account as the provisional amount for each description of deferred pension the amount specified in the pension member’s account.

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125 Re-employment after ill health awards

(1) This regulation applies where— (a) an ill health pension has been awarded to a member in respect of a continuous period of pensionable service (“earlier service”); and (b) subsequently, the member re-enters pensionable service (“current service”). (2) The ill health pension ceases to be payable on the first day of the current service. (3) The member becomes a deferred member in respect of the earlier service. (4) The scheme manager must close the pension member’s account and establish a deferred member’s account in respect of the earlier service. (5) The scheme manager must credit to the deferred member’s account as the provisional amount for each description of deferred pension the amount specified in the pension member’s account less an amount attributable to the enhancement value under Chapter 3 of Part 5.

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126 Payment of benefits

Pensions payable under the scheme are payable by monthly instalments in arrears.

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127 False statements etc about ill-health

(1) This regulation applies where— (a) a pension under Chapter 3 of Part 5 (Ill-Health Benefits) has been awarded to a member; and (b) subsequently it appears to the scheme manager that the member made a false declaration about the member’s health or deliberately suppressed a material fact that was relevant to the award. (2) The scheme manager may— (a) cease paying the pension; (b) withhold the whole or part of the pension; or (c) recover any payment made under the award.

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128 Non assignability

(1) Every benefit to which a person is entitled under this scheme is payable to or for that person’s benefit. (2) No such benefit is assignable or chargeable with the member’s or any other person’s debts. (3) This regulation is without prejudice to anything that has effect by virtue of any enactment or may be done under or for the purposes of the Chelsea and Kilmainham Hospitals Act 1826.

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129 General prohibition on unauthorised payments

Nothing in these Regulations requires or authorises the making of any payment, which, if made, would be an unauthorised payment for the purposes of Part 4 of the FA 2004 (see section 160(5) of that Act).

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130 Calculation of periods of membership and service

(1) For the purposes of this scheme, periods of membership and service are to be expressed in the first instance in whole years, and days, and the initial aggregation of periods that require to be aggregated is done in the first instance by reference to periods so expressed. This is subject to paragraph (3). (2) If, when all periods of membership or service that are required to be aggregated have been aggregated, there is any excess part day over the number of whole days, that excess is rounded up to a full day. This is subject to paragraph (3). (3) If membership or service is referred to in these Regulations as membership or service in years— (a) the days referred to in paragraph (1); and (b) the full days referred to in paragraph (2) are converted into years by dividing the number of days in excess of the period of whole years by 365 or in the case of a leap year 366, and rounding the result to 4 decimal places. (4) If a period of membership or service is less than one year, this regulation applies as if the words “whole years, and” were omitted from paragraph (1) and the words “in excess of the period of whole years” were omitted from paragraph (3).

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131 Determination of questions

Except as otherwise provided by these Regulations, any question arising under this scheme is to be determined by the scheme manager, whose decision on it is final.

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132 Information and evidence

(1) The scheme manager may require any person who is receiving a pension under this scheme to provide evidence to establish— (a) the person’s identity; and (b) the person’s continuing entitlement to payment of any amount. (2) If such evidence is not provided, the scheme manager may withhold the whole or any part of any benefits payable under this scheme in respect of the person.

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133 Provision of benefit information statements to members

The scheme manager must provide an annual benefit information statement to each active member of this scheme in accordance with Treasury directions made under section 14 of the Act (information about benefits).

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Schedule Remediable Service

Regulation 2(2) Part 1 Introductory Provisions Interpretation 1 In this Schedule— “AFPS 1975” means the occupational pension scheme arrangements known as the Armed Forces Pension Scheme 1975 and set out in— the Naval and Marine Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010, the Army Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Warrant 2010, and the Air Force (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010 (“the AFPS 1975 instruments”); “AFPS 2005” means the occupational pension scheme established by the Armed Forces Pension Scheme Order 2005; ... “EDP 2005” means the occupational pension scheme established by the Armed Forces Early Departure Payments Order 2005; “EDP 2015” means the arrangements established by the Armed Forces Early Departure Payments Regulations 2014; “FTRS 1997” means the occupational pension scheme established by the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010; “NRPS 2011” means the occupational pension scheme established by the Reserve Forces Non Regular Permanent Staff (Pension and Attributable Benefits Schemes) Regulations 2011; “PSP Directions 2022” means the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions 2022; “PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022; “RFPS 2005” means the occupational pension scheme established by the Reserve Forces Pension Scheme Regulations 2005; “armed forces pension scheme” means any Chapter 1 scheme under which service in the regular forces or the reserve forces is pensionable; “Chapter 1 scheme” has the meaning given in section 33(1) of PSPJOA 2022; “member” means an active, deferred, deceased or pensioner member of a pension scheme; “relevant amount” has the meaning given in section 26(3) of PSPJOA 2022; “remediable service”, in relation to a remedy member, means the member’s remediable service in an employment or office that is pensionable service under a Chapter 1 scheme for the armed forces and the reserve forces (whether or not by virtue of section 2(1) of PSPJOA 2022); “remedy member” means a member with remediable service; “section 6 election” means an election made in accordance with regulations made under section 6(1) of PSPJOA 2022 in relation to an armed forces pension scheme; “section 10 election” means an election made in accordance with regulations made under section 10(1) of PSPJOA 2022 in relation to an armed forces pension scheme. 2 (1) For the purposes of this Schedule, a reference in PSPJOA 2022 to section 2(1) of that Act coming into force is to be understood as a reference to that section coming into force in relation to the armed forces pension schemes. (2) A term used in this Schedule which— (a) is defined in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022, and (b) is not defined differently in this Schedule, has the meaning given in, or for the purposes of, that provision. (3) A term used in this Schedule which— (a) is defined in this scheme or an armed forces pension scheme (“the relevant schemes”), and (b) is not defined differently— (i) in this Schedule, or (ii) in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022, has, in relation to the relevant schemes, the meaning given in those schemes. (4) In this Schedule, a reference to a provision of the PSP Directions 2022 is a reference to that provision as amended from time to time. 3 For the purposes of this scheme, section 14 of PSPJOA 2022 applies as if— (a) in section 14(2) the words “immediately before the coming into force of section 2(1)” were omitted; (b) in section 14(7)(b) the words “or section 10” were inserted after “section 6”. Part 2 Added Pension Chapter 1 Added Pension Extinguishing rights to added pension 4 (1) This paragraph applies in relation to a remediable added pension payment made by a remedy member (“M”). (2) The scheme manager must, as soon as reasonably practicable after 1st October 2023, and having regard to the advice of the scheme actuary, determine the “compensatable amount”, being an amount by way of compensation which is equal to— (a) the aggregate of all of M’s remediable added pension payments, less (b) an amount in respect of the value of tax relief in accordance with directions 5(5) to (9) of the PSP Directions 2022. (3) The scheme manager owes the compensatable amount to M or, where M is deceased, to M’s personal representatives. (4) The rights to benefits under the scheme that would otherwise have been secured by the remediable added pension payment are extinguished. (5) Where a person has received any pension benefits under this scheme by virtue of rights secured by a remediable added pension payment, that person owes to the scheme manager an amount equal to the aggregate of all such pension benefits. (6) Where a determination is made in accordance with direction 5(8) of the PSP Directions 2022, the following apply— (a) direction 5(10) (provision of explanation); (b) directions 5(11) and (12) (appeals). (7) In this regulation, “remediable added pension payment” means a periodical payment or lump sum payment for added pension made under an arrangement pursuant to Chapter 1 of Part 7 of this scheme (contributions to purchase added pension) which commenced during the period of M’s remediable service. Member’s option to make additional lump sum contribution for added pension 5 (1) This paragraph applies where a remedy member (“M”) is an active member of this scheme who, before 31st March 2025— (a) is entitled to receive a compensatable amount under paragraph 4, and (b) has exercised an option to purchase added pension under Chapter 1 of Part 7 in a relevant scheme year. (2) M may opt to make a second lump sum contribution under regulation 92 to increase— (a) the benefits payable to the member under Part 5 (retirement benefits) of this scheme; (b) the benefits payable under Part 5 and Part 6 (death benefits). (3) Where M exercises an option under this paragraph, the restrictions in regulations 91(9) and 92(4) are disregarded. (4) The option under this paragraph may not be exercised after 31st March 2025. (5) In this paragraph, a relevant scheme year is— (a) the scheme year beginning with 1st April 2023; (b) the scheme year beginning with 1st April 2024. Chapter 2 Secondment to NATO or the UN etc Secondment to NATO, UN etc 6 (1) This Chapter applies to a remedy member (“M”) who— (a) has remediable service in the AFPS 1975, the AFPS 2005 or the RFPS 2005 (whether or not by virtue of section 2(1) of PSPJOA 2022), (b) has exercised an option under rule C.3 of the AFPS 1975, rule C.6 of the AFPS 2005, or rule C.9 of the RFPS 2005, and regulation 97 of this instrument, where— (i) the options were exercised on or before 30th September 2023, (ii) a lump sum has been paid by M in accordance with the relevant scheme rules, and (iii) any contribution required by the relevant rules, calculated as at the date the option was exercised, has been paid. (2) The lump sum, and any contribution, referred to in paragraph (1)(b)— (a) is not, and is treated as never having been paid to this scheme, and (b) is treated as being, and as always having been, paid to the relevant legacy scheme. (3) The earned pension benefits in relation to remediable service in this scheme which were preserved by the arrangement under regulation 97 are extinguished. Part 3 Provision about divorce and dissolution arrangements Chapter 1 Pension Credit and Debit members Section 1 Application and Interpretation of Chapter 1 Application and Interpretation 7 (1) This Chapter applies in relation to— (a) a pension credit member (“C”), (b) the corresponding pension debit member (“D”), and (c) the pension sharing order by virtue of which C became a pension credit member in relation to D’s remediable service (the “relevant pension sharing order”). (2) In this Chapter— “appropriate amount” means the amount calculated for the purposes of section 29(1) of WRPA 1999; “cash equivalent” means an amount calculated in accordance with regulations made under section 30 of WRPA 1999; “pension credit account” means a pension credit member account in this scheme or a relevant legacy pension scheme; “pension credit member” means a member of this scheme who has rights under the scheme— which are attributable (directly or indirectly) to a pension credit, which arise by virtue of a pension sharing order with a transfer day on or after 1st April 2015, and the value of which is determined (to any extent) by reference to the value of benefits payable in respect of the remediable service of another member; “pension debit member” means a member of this scheme with remediable service (whether or not by virtue of section 2(1) of PSPJOA 2022) whose benefits, or future benefits, under the AFPS 2015 fall to be reduced under section 31 of WRPA 1999 (reduction of benefit); “pension information” means information provided by the scheme manager under regulations 2, 3 or 4 of the Pensions on Divorce etc. (Provision of Information) Regulations 2000; “pension sharing order” means the order or provision by virtue of which section 29 of WRPA 1999 applies in relation to a pension credit member and the corresponding pension debit member; “relevant legacy pension scheme” means the AFPS 1975, the AFPS 2005, the RFPS 2005, the FTRS 1997 and the NRPS 2011 pension schemes; “remediable relevant benefits” means the benefits or future benefits described in section 29(4) and (5) of WRPA 1999 to which D is entitled by virtue of remediable shareable rights; “remediable shareable rights” means D’s shareable rights secured by virtue of D’s remediable service during the period beginning on 1st April 2015 and ending on the earlier of— the day before the transfer day, or the last day of D’s remediable service; “shareable rights” has the meaning in section 27(2) of WRPA 1999; “transfer day” means the day on which the relevant pension sharing order takes effect; “valuation day” has the meaning given in section 29(7) of WRPA 1999. (3) In this Chapter, where the scheme manager is required to determine an amount, this must be done— (a) as soon as reasonably practicable; (b) having regard to the advice of the scheme actuary. (4) In this Chapter, a reference to benefits secured in “this scheme” or the “reformed scheme”, means benefits secured under the rules of this scheme, disregarding the provisions of this Schedule. Section 2 Pension sharing orders: information provided before 1st October 2023 Application and Interpretation of Section 2 8 (1) This Section applies where the most recent pension information in respect of a member’s remediable service was provided by the scheme manager before 1st October 2023. (2) In this Section— “legacy remediable appropriate amount” means the appropriate amount in relation to D’s remediable relevant benefits determined as if those remediable relevant benefits had been secured in the relevant legacy scheme immediately before the transfer day; “reformed remediable appropriate amount” means the appropriate amount in relation to D’s remediable relevant benefits determined as if those remediable relevant benefits had been secured in this scheme immediately before the transfer day; “relevant request” means a request under— paragraph 23 of Schedule 4 (Remediable Service) to the AFPS 1975 instruments; paragraph 26 of Schedule 3 (Remediable Service) to the Armed Forces Pension Scheme Order 2005; paragraph 23 of Schedule 3 (Remediable Service) to the Reserve Forces Pension Scheme Regulations 2005; paragraph 24 of Schedule 3 (Remediable Service) to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010; paragraph 24 of Schedule 4 (Remediable Service) to the Reserve Forces Non Regular Permanent Staff (Pension and Attributable Benefits Schemes) Regulations 2011. Information before 1st October 2023: legacy scheme adjustment 9 (1) This paragraph applies where, in relation to a relevant pension sharing order— (a) C has a pension credit account in this scheme and in a relevant legacy pension scheme, and (b) C has made a relevant request under the rules of the relevant legacy pension scheme. (2) Where C makes a relevant request, the scheme manager must accept an amount in respect of D’s remediable relevant benefits (a “remediable credit adjustment”) from the scheme manager of the relevant legacy pension scheme and credit this to C’s pension credit account in this scheme. (3) An adjustment under sub-paragraph (2) takes effect as if it had been made on the transfer day. (4) The scheme manager must, as soon as reasonably practicable, send a notice in writing to C, specifying— (a) the amount of the remediable credit adjustment received; (b) details of the benefits credited to C’s pension credit account. Information before 1st October 2023: AFPS 2015 only, transfer day before 1st October 2023 10 (1) This paragraph applies, in relation to a relevant pension sharing order— (a) where the transfer day was on or before 30th September 2023, (b) whether or not the valuation day has occurred before 30th September 2023, and (c) where C does not have a pension credit account in the relevant legacy pension scheme. (2) The scheme manager must determine— (a) the initial appropriate amount; (b) the remediable appropriate amount. (3) The “initial appropriate amount” is the appropriate amount determined on the valuation day for the purposes of section 29(2) or (3) of WRPA 1999 in relation to D’s remediable shareable rights in this scheme immediately before the transfer day. (4) The remediable appropriate amount is the greater of the following amounts— (a) the initial appropriate amount; (b) the legacy remediable appropriate amount. (5) Where the remediable appropriate amount is greater than the initial appropriate amount, C’s pension credit account is subject to an adjustment (a “remediable credit adjustment”) equal to the difference. (6) The scheme manager must, as soon as reasonably practicable, provide C with a statement setting out— (a) the initial appropriate amount; (b) the legacy remediable appropriate amount; (c) any remediable credit adjustment. (7) In determining the legacy remediable appropriate amount for the purposes of sub-paragraph (4), the percentage value for the purposes of section 29(2) WRPA 1999 is the percentage specified in the relevant pension sharing order in relation to this scheme. (8) Where the relevant pension sharing order specifies an amount to be transferred, the scheme manager must— (a) calculate the percentage (the “implied percentage”) that the amount to be transferred represented of the cash equivalent, on the valuation day, of all D’s shareable rights under this scheme immediately before the transfer day; (b) determine the legacy remediable appropriate amount for the purposes of section 29(3) of WRPA 1999 by applying the implied percentage to the cash equivalent of the remediable relevant benefits on the valuation day as if they had been secured in the relevant legacy scheme immediately before the transfer day. Information provided before 1st October 2023: AFPS 2015 only, transfer day after 1st October 2023 11 (1) This paragraph applies where, in relation to a relevant pension sharing order— (a) the transfer day is on or after 1st October 2023, and (b) C does not have a pension credit account in the relevant legacy pension scheme. (2) The scheme manager must determine the appropriate amount under section 29(1)(b) of WRPA 1999 in relation to D’s remediable relevant benefits— (a) as if those remediable relevant benefits had been secured in this scheme immediately before the transfer day (“reformed remediable appropriate amount”); (b) as if those remediable relevant benefits had been secured in the relevant legacy pension scheme immediately before the transfer day (“legacy remediable appropriate amount”). (3) The appropriate amount in relation to D’s remediable relevant benefits (“the remediable appropriate amount”) is the greater of the legacy remediable appropriate amount or the reformed remediable appropriate amount. (4) The scheme manager must, as soon as reasonably practicable, provide C with a statement setting out— (a) the legacy remediable appropriate amount; (b) the reformed remediable appropriate amount. (5) In determining the legacy remediable appropriate amount for the purposes of sub-paragraph (4), the percentage value for the purposes of section 29(2) WRPA 1999 is the percentage specified in the relevant pension sharing order in relation to this scheme. (6) Where the relevant pension sharing order specifies an amount to be transferred, the scheme manager must— (a) calculate the percentage (the “implied percentage”) that the amount to be transferred represented of the cash equivalent, on the valuation day, of all D’s shareable rights under this scheme immediately before the transfer day; (b) determine the legacy remediable appropriate amount for the purposes of section 29(3) of WRPA 1999 by applying the implied percentage to the cash equivalent of the remediable relevant benefits on the valuation day as if they had been secured in the relevant legacy scheme immediately before the transfer day. Information provided before 1st October 2023: applying a remediable credit adjustment 12 (1) This paragraph applies where C’s pension credit account is subject to a remediable credit adjustment. (2) The scheme manager must adjust C’s pension credit account in this scheme by an amount equal to the remediable credit adjustment. (3) An adjustment made under sub-paragraph (2) has effect as if it had been made on the transfer day. (4) Section 14(3) to (6) of PSPJOA 2022 applies in relation to C as it applies in relation to a member described in section 14(1) as if— (a) a reference to D’s remediable service in an employment or office were a reference to C’s pension credit; (b) a reference to the effect, if any, of sections 2(1) and 6(4) were a reference to the effect, if any, of this paragraph; (c) the term “operative time” means the time at which the adjustment mentioned in sub-paragraph (2) is made (disregarding sub-paragraph (3)). Part 4 Transfers Chapter 1 General Application and Interpretation 13 (1) In this Part— “receiving scheme”, in relation to a remediable value, means the scheme to which the remediable value was, or is to be, paid; “reformed public service pension scheme” means— a Chapter 1 scheme within the meaning of section 33 of PSPJOA 2022; a judicial scheme within the meaning of section 70(1) of PSPJOA 2022; a local government scheme within the meaning of section 86(1) of PSPJOA 2022; “relevant legacy pension scheme” means, in relation to a remediable transfer value, the armed forces pension scheme under which M’s remediable service is pensionable by virtue of section 2(1) of PSPJOA 2022; “remediable benefits” means the benefits payable to or in respect of a remedy member in relation to that member’s remediable service; “remediable club transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of a transfer value under Part 8 of the scheme in accordance with the club transfer arrangements, in so far as the transfer value relates to the member’s remediable rights; “remediable rights”, in relation to a member, means the member’s rights to benefits under a reformed public service pension Scheme secured by virtue of the member’s remediable service; “remediable transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of a transfer value payment under Part 8 during the period 1st April 2015 to 31st March 2022, other than a remediable club transfer value; “remediable value” means a remediable club transfer value or a remediable transfer value; “sending scheme”, in relation to a remediable value, means the scheme which paid, or is to pay, the remediable value. (2) Where a provision of this Part requires the scheme manager to calculate a club transfer value or a transfer value (including a remediable club transfer value or a remediable transfer value) in relation to rights secured in a pension scheme, that value is to be calculated in accordance with— (a) the provisions of the pension scheme which apply to the calculation of values of that type, and (b) the guidance and tables for the purpose of calculating such values that were, or are, in use on the date used for the original calculation. (3) For the purposes of this Part, any rule or condition in Part 8 of the scheme or the club transfer arrangements relating to the time within which a transfer value payment must be made or accepted that would otherwise prevent any payments being made or accepted under this Part, that rule or condition is treated as complied with or met. Chapter 2 Transfers on a cash equivalent basis Transfers out before 1st October 2023 14 (1) This paragraph applies in relation to a member (“M”) in respect of whom the scheme manager paid a remediable transfer value before 1st October 2023. (2) The remediable transfer value payment— (a) is not, and is treated as never having been, paid by this scheme, and (b) is treated as being, and as always having been, paid by the relevant legacy pension scheme. (3) The scheme manager must notify the scheme manager of the relevant legacy scheme of the remediable transfer value paid before 1st October 2023. Transfers in before 1st April 2022 15 (1) This paragraph applies in relation to each remediable transfer value in respect of a remedy member (“M”) which was accepted by the scheme manager before 1st April 2022. (2) The remediable transfer value— (a) is not, and is treated as never having been, accepted into this scheme, and (b) is treated as being, and as always having been, accepted into the relevant legacy pension scheme. (3) M’s pension account under Part 4 of this scheme is adjusted accordingly. (4) The scheme manager must, as soon as reasonably practicable, provide M with a statement setting out— (a) the remediable transfer value treated as having been paid to M’s relevant legacy pension scheme; (b) the corresponding adjustment to M’s pension account. Chapter 3 Transfers on a Club basis Section 3 Club transfers before 1st October 2023 Club transfers out before 1st October 2023 16 (1) This paragraph applies in relation to each remedy member (“M”) in respect of whom the scheme manager paid a remediable club transfer value before 1st October 2023. (2) The remediable club transfer value— (a) is not, and is treated as never having been, paid by this scheme, and (b) is treated as being, and as always having been, paid by the relevant legacy pension scheme. Club transfers in before 1st October 2023 17 (1) This paragraph applies in relation to each remediable club transfer value in respect of a remedy member (“M”) which was accepted by the scheme manager before 1st October 2023. (2) The remediable club transfer value— (a) is not, and is treated as never having been, accepted into this scheme, and (b) is treated as being, and as always having been, accepted into the relevant legacy pension scheme. (3) The rights to benefits in this scheme which would otherwise have been secured by the remediable club transfer value are extinguished. (4) The scheme manager must, as soon as reasonably practicable, provide M with a statement setting out— (a) the remediable club transfer value payments now treated as having been made to M’s relevant legacy pension scheme; (b) the corresponding adjustment to M’s pension account in this scheme. Chapter 4 Variation of the club transfer application period Variation of the club transfer application period 18 Regulation 107(2) of this scheme applies in relation to— (a) a remedy member (“M”) who was not a full protection member of a connected scheme before 1st April 2022, and (b) a transfer payment request for a club transfer value payment in respect of such a member, as if for “the day on which the member becomes an active member of this scheme” there were substituted “1st October 2023”. Part 5 Pension Accounts Modification of Pension Accounts 19 (1) This paragraph applies where— (a) a section 6 election or section 10 election is made in respect of a remedy member’s (“M”) remediable service in a connected scheme, (b) M has pensionable service under this scheme, and (c) M’s pensionable service and M’s remediable service in the connected scheme would be treated as a continuous period of pensionable service if M’s remediable service was pensionable under this scheme. (2) In such a case, for the purpose of calculating the index adjustment, the scheme manager must treat— (a) the amount of accrued earned pension under regulation 25(2), and (b) the amount of the accrued club transfer earned pension under regulation 25(5), as though they included any corresponding amounts payable as new scheme benefits by the connected scheme. Part 6 Liabilities and payment Chapter 1 General Application of Chapters 1, 2 and 3 20 Chapters 1, 2 and 3 apply in relation to a relevant amount owed in respect of the remediable service of a remedy member. Chapter 2 Interest and netting off Interest 21 (1) The scheme manager must calculate interest on a relevant amount described in direction 15 of the PSP Directions 2022 in accordance with the provisions of directions 14 and 15 which apply to that description of relevant amount. (2) In relation to a relevant amount not described in direction 15 of the PSP Directions 2022, the scheme manager must determine whether interest is paid and, if so, what rate of interest applies and how it is calculated. (3) The following provisions of the PSP Directions 2022 apply in relation to a determination under sub-paragraph (2) as if it were a determination under direction 16(1) of those Directions— (a) direction 16(2) (provision of explanation); (b) direction 16(3) and (4) (appeals). Netting off 22 (1) This paragraph applies where— (a) relevant amounts owed by and to a person (“P”) fall to be paid at the same time or similar times, and (b) the scheme manager has determined the interest (if any) that is to be paid on the relevant amounts in accordance with paragraph 21. (2) The scheme manager may determine, in accordance with direction 19(2) to (5) of the PSP Directions 2022, that the relevant amounts (and any interest on them) must be aggregated and that the difference must be paid by P to the Scheme or (as the case may be) by the scheme to P. (3) For the purposes of this paragraph, any amounts owed by P under the rules of a relevant injury and compensation scheme are treated as a relevant amount owed by P to this scheme, where those amounts arose by virtue of the operation of the provisions of Chapter 1 of Part 1 of PSPJOA 2022. (4) The following provisions of the PSP Directions 2022 apply in relation to a determination under sub-paragraph (2) as if it were a determination under direction 19(1) of those Directions— (a) direction 19(6) (provision of explanation); (b) direction 19(7) and (8) (appeals). Chapter 3 Reduction and waiver of liabilities Power to reduce or waive amounts owed by a person to the Scheme manager 23 (1) The scheme manager may reduce or waive an amount owed by a person to the scheme under— (a) section 14 of PSPJOA 2022, or (b) this Schedule. (2) When reducing or waiving an amount under sub-paragraph (1), the scheme manager must comply with the requirements set out in direction 4(1)(a) to (c) of the PSP Directions 2022 (and the reference in direction 4(1)(c) to “any scheme regulations made by virtue of section 26(1)(b) of PSPJOA 2022” is to be read as a reference to paragraph 25). Chapter 4 Payment of net liabilities Application of Chapter 4 24 This Chapter applies in respect of a relevant amount (together with any interest on that relevant amount) owed after taking into account the effect, if any, of paragraphs 21 to 23 (a “net liability”). Payment of amounts owed to the Scheme manager 25 (1) This paragraph applies where a person (“P”) owes a net liability to the scheme manager. (2) The scheme manager must send a notice in writing to P setting out— (a) how the net liability has been calculated, (b) an explanation of the circumstances in which the net liability may be reduced or waived under paragraph 23, (c) when and how the net liability must be paid, and (d) the consequences of not paying the net liability. (3) Where— (a) the scheme manager has sent a notice under sub-paragraph (2), and (b) the amount of the net liability is subsequently adjusted, the scheme manager must send another notice in writing to P under sub-paragraph (2). (4) P must pay the amount of the net liability to the scheme manager— (a) before the end of the period of 6 months beginning with the day after the day on which P receives the most recent notice under sub-paragraph (2), or (b) in accordance with an agreement under sub-paragraph (5). (5) P and the scheme manager may agree that the net liability is to be paid in part or in full— (a) by way of instalments, or (b) by way of deductions from any benefits (including a lump sum benefit) to which P is entitled under an armed forces pension scheme. (6) P and the scheme manager may agree to vary an agreement under sub-paragraph (5). (7) Where P does not pay any amount that falls due by virtue of sub-paragraph (4)(a) or an agreement under sub-paragraph (5), the scheme manager may deduct such sums from benefits payable to P under an armed forces pension scheme as seem reasonable to the scheme manager for the purpose of discharging P’s liability. Payment of amounts owed to a person 26 (1) This paragraph applies where the scheme manager owes a net liability to a person (“P”). (2) The scheme manager must pay the amount of the net liability to P— (a) as soon as reasonably practicable after the Scheme manager determines the amount of the net liability, or (b) where the scheme manager requires P to provide information in accordance with sub-paragraph (3), as soon as reasonably practicable after receipt of that information. (3) Before paying the amount of a net liability owed to P, the scheme manager may, by written notice given as soon as reasonably practicable after the scheme manager determines the amount of the net liability, require P to provide information in relation to the payment of the net liability which is— (a) information within P’s possession, or (b) information which P may reasonably be expected to obtain.

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