The Armed Forces (Transitional Provisions) Pensions Regulations 2015

• Citation: S.I. 2015/568
• Sections: 285

Section 1 Citation and commencement

(1) These Regulations may be cited as the Armed Forces (Transitional Provisions) Pensions Regulations 2015.

(2) These Regulations come into force on 1st April 2015.

Section 2 Interpretation

In these Regulations—

“ AFPS 2015 ” means the scheme established by the Armed Forces Pension Regulations 2014 ;

“ EDP 2015 ” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014 .

Section 3 Amendment of the Armed Forces Pensions Scheme 1975

The Armed Forces Pension Scheme 1975 (“the AFPS 1975 ”) is amended according to the provisions in this Part.

Section 4 Amendment of Rule A.1 in Schedule 1 to the AFPS 1975

In the Naval and Marine Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010 (the “Naval Pensions Order”), the Army Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Warrant 2010 (the “Army Pensions Warrant”) and the Air Force (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010 (the “Air Force Pensions Order”), rule A.1 in Schedule 1 (General interpretation) is amended by inserting at the appropriate places—

(a) “AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ;

(b) “transition date” has the same meaning as specified in paragraph 1 of Schedule 3 to this Instrument;

Section 5 Amendment of Rule H.1 in Schedule 1 to the AFPS 1975

In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.1 in Schedule 1 (Further pensionable service: general rule) is amended by inserting into paragraph (1) after “further pensionable service” the following: “including service by virtue of which the person is eligible for membership of the Armed Forces Pension Scheme 2015 (“AFPS 2015”)”.

Section 6 Amendment of Rule H.3 in Schedule 1 to the AFPS 1975

In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.3 in Schedule 1 (Service on lower pay) is amended by—

(a) inserting into sub-paragraph (1)(a) after “further pensionable service” the following: “including service by virtue of which the person is eligible for membership of the AFPS 2015”; and

(b) in paragraph (3), inserting after “A is the annual amount of the pension” the following: “which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension”.

Section 7 Amendment of Rule H.4 in Schedule 1 to the AFPS 1975

In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.4 in Schedule 1 (Reserve Service) is amended by—

(a) inserting into paragraph (1) after “in reserve service” the following: “including service by virtue of which the person is eligible for membership of the AFPS 2015”; and

(b) in paragraph (3), inserting after “A is the annual amount of the pension” the following: “which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension”.

Section 8 Insertion of new Schedules

The Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order are each amended by inserting, after Schedule 2 in each case, the new Schedule 3 contained in Schedule 1 to this Instrument, which has effect.

Section 9 Amendment of the Armed Forces Pensions Scheme 2005

The Armed Forces Pension Scheme 2005 is amended according to the provisions in this Part.

Section 10 Insertion of new article 5 into the AFPS Order 2005

The Armed Forces Pension Scheme Order 2005 (“the AFPS Order 2005”) is amended by inserting after article 4 the following new article—

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.

Section 11 Amendment of rule A.1 in Schedule 1 to the AFPS Order 2005

Rule A.1(interpretation: general) in Schedule 1 to the AFPS Order 2005 is amended by inserting at the appropriate place—

“AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ;

Section 12 Amendment of rule H.1 in Schedule 1 to the AFPS Order 2005

Rule H.1(application of Part H) in Schedule 1 to the AFPS Order 2005 is amended by—

(a) in paragraph (1), after “pensioner member or deferred member of the Scheme” inserting “(whether or not they are also a pensioner member of the AFPS 2015)”;

(b) after paragraph (1)(b), inserting—

or

(c) is re-engaged in service by virtue of which the person is eligible for membership of the AFPS 2015,

(c) after paragraph (2)(b), omitting “and”; and

(d) after paragraph (2)(c), inserting—

and

(d) where sub-paragraph (1)(c) applies, the “old service pension” includes any AFPS 2015 pension.

Section 13 Insertion of new Schedule into the AFPS Order 2005

The AFPS Order 2005 is amended by the insertion after Schedule 1 to the new Schedule 2 contained in Schedule 2 to this Instrument .

Section 14 Amendment of the Armed Forces Early Departure Payments Scheme 2005

The Armed Forces Early Departure Payments Scheme 2005 is amended according to the provisions in this Part.

Section 15 Amendment of article 3 (general interpretation) of the EDP Order 2005

Article 3 (general interpretation) of the Armed Forces Early Departure Payments Scheme Order 2005 (“the EDP Order 2005”) is amended by inserting at the appropriate places—

(a) ““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 (“the AFP Regulations 2014 ”);”,

(b) ““EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014;”,

(c) ““transition date” in relation to a person with dual entitlement means 1st April 2015 or, if later, the day on which a person ceased to be a full protection member of the AFPS 2005 ;”, and

(d) ““full protection member” has the meaning given in Part 2 of Schedule 2 to the Armed Forces Pension Scheme Order 2005 ;”.

Section 16 Insertion of new article 3A in the EDP Order 2005

The EDP Order 2005 is amended by, after article 3, inserting the following new article—

Meaning of “a person with dual entitlement”

(3A)

(1) For the purposes of the Scheme “a person with dual entitlement” means, subject to paragraph (2), a person who—

(a) is a member of AFPS 2005 by virtue of their pensionable service under the AFPS 2005, or

(b) was eligible to have been a member of AFPS 2005, and

(c) is also a member of the AFPS 2015 by virtue of their pensionable service under the AFPS 2015, or

(d) was eligible to have been a member of the AFPS 2015 on or after 1st April 2015.

(2) A person is not a person with dual entitlement where the gap between the last day of service or eligibility at paragraph (1)(a) or (b) as the case requires and the first day of service or eligibility at paragraph (1)(c) or (d) as the case requires exceeds 5 years.

Section 17 Amendment of article 4 (meaning of “relevant service”) of the EDP Order 2005

Article 4 of the EDP Order 2005 is amended by, after paragraph (3), inserting—

(4) In the case of a person with dual entitlement, service on or after the transition date —

(a) is relevant service for the purposes of article 6(1) and (5),

(b) is relevant service for the purposes of article 8(4),

(c) is relevant service for the purposes of article 10(4)(a) and (b),

(d) is relevant service for the purposes of article 16(1)(b),

(e) is not relevant service for the purposes of article 5(a).

Section 18 Amendment of article 8 (eligibility for early departure payments) of the EDP Order 2005

Article 8(5) of the EDP Order 2005 is amended by—

(a) omitting “or” at the end of sub-paragraph (a),

(b) after paragraph (b) inserting—

(c) regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), or

(d) regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment).

Section 19 Amendment of article 10 (amount of payments under article 9) of the EDP Order 2005

(1) Article 10 of the EDP Order 2005 is amended by—

(a) in paragraph (2) substituting “T” for “N”,

(b) in paragraph (4)—

(i) omitting “that the person is entitled to count for the purposes of Condition C in article 8(4), and”,

(ii) inserting after sub-paragraph (a)—

(zb) T is either—

(i) the number of years’ relevant service, or

(ii) for a person with dual entitlement, the number of years’ relevant service before the transition date, and

(c) in paragraph (5) inserting “or T , as appropriate,” after “ N ”,

(d) inserting after paragraph (8)—

(8A) In the case of a person with dual entitlement—

(a) service on or after the transition date is qualifying service for the purposes of regulation 10 of the EDP Regulations 2014 ,

(b) all payments made under this article and regulation 10 of the EDP 2015 are payable under the EDP Regulations 2014.

Section 20 Amendment of article 12 (effect of rejoining armed forces or entering certain reserve forces service on article 9 award) of the EDP Order 2005

Article 12 of the EDP Order 2005 is amended by—

(a) at the end of paragraph (4)(a) omitting “or”,

(b) after paragraph (4)(b) inserting—

(c) regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), or

(d) regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment.)

Section 21 Amendment of article 14 (entitlement to resettlement grants) of the EDP Order 2005

Article 14(1) of the EDP Order 2005 is amended by, after paragraph (d), inserting—

and

(e) is not entitled to a resettlement grant under regulation 16 of the EDP Regulations 2014.

Section 22 Amendment of article 16 (lump sum awards: incapacity for armed forces service) of the EDP Order 2005

Article 16 of the EDP Order 2005 is amended by—

(a) at the end of paragraph (1)(d)(iii) omitting “or”,

(b) after paragraph (1)(d)(iv) inserting—

(v) regulation 43 of the AFP Regulations 2014 (retirement on or after reaching normal pension age – active members),

(vi) regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health),

(vii) regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment), or

(viii) regulation 60 of the AFP Regulations 2014 (option for members in serious ill-health to exchange whole pension for lump sum).

(c) inserting at the beginning of paragraph (3) “Subject to paragraph (4A),”,

(d) inserting at the beginning of paragraph (4) “Subject to paragraph (4A),”,

(e) after paragraph (4) inserting—

(4A) In the case of a person with dual entitlement—

(a) paragraphs (3) and (4) do not apply,

(b) service on or after the transition date is only service for the purposes of regulation 20 of the EDP Regulations 2014,

(c) the amount of the lump sum calculated under paragraph (2)—

(i) is added to the amount of the lump sum calculated under regulation 20(1) of the EDP Regulations 2014 but ignoring regulation 20(1) sub-paragraphs (a) and (b), and

(ii) sub-paragraphs (a) and (b) of regulation 20(1) are then applied,

(d) all payments made under this article and regulation 20 of the EDP Regulations 2014 are payable under the EDP 2015.

(f) after paragraph (5) inserting—

(6) For a person with dual entitlement this article is subject to regulation 58 (member’s request for review of ill-health awards) of the AFP Regulations 2014.

Section 23 Amendment of the Reserve Forces (Full-Time Reserve Service) Pension Scheme 1997

The Reserve Forces (Full-Time Reserve Service Pension Scheme 1997 (“the FTRS 1997 ”) is amended according to the provisions in this Part.

Section 24 Amendment of Rule G.1 in Schedule 1 to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010

(1) Rule G.1 (abatement of pensions on giving further service), in Schedule 1 to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010 “the FTRS Regulations”) is amended by inserting into paragraph (1), after “further pensionable service”, the following words: “including service by virtue of which the person is eligible for membership of the Armed Forces Pension Scheme 2015 (“AFPS 2015”) .”.

(2) Rule G.1 is further amended at paragraph (2) by the insertion, after “the amount that the pension” the following words: “(which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension)”.

Section 25 Insertion of new regulation 3 into the FTRS Regulations

The FTRS Regulations are amended by inserting, after regulation 2, the following new regulation—

Transitional provision

(3) Schedule 2 (Transitional Provision) has effect.

Section 26 Insertion of new Schedule into the FTRS Regulations

The FTRS Regulations are amended by the insertion of the new Schedule 2 contained in Schedule 3 to this Instrument.

Section 27 Amendment of the Reserve Forces Non-Regular Permanent Staff (Pensions and Attributable Benefits Scheme) Regulations 2011

The Reserve Forces Non Regular Permanent Staff Pension Scheme is amended according to the provisions in this Part.

Section 28 Insertion of new regulation 3A

The Reserve Forces Non Regular Permanent Staff (Pension and Attributable Benefits Scheme) Regulations 2011 (“the NRPS Regulations 2011”) are amended by inserting, after regulation 3, the following new regulation—

Transitional provision

(3A)

(1) Schedule 3 (Transitional Provision) has effect.

Section 29 Insertion of new Schedule into the NRPS Regulations 2011

The NRPS Regulations 2011 are amended by the insertion after Schedule 2 to the new Schedule 3 contained in Schedule 4 to this Instrument.

Section 30 Amendment of the Reserve Forces Pension Scheme 2005

The Reserve Forces Pension Scheme 2005 is amended according to the provisions in this Part.

Section 31 Insertion of new article 5 into the Reserve Forces Pension Scheme Regulations 2005

The Reserve Forces Pension Scheme Regulations 2005(“the RFPS Regulations 2005”) are amended by inserting after regulation 2 the following new regulation—

Closure of Scheme and transitional provision

(3)

(1) Schedule 3 (Transitional Provision) has effect.

(2) After 31st March 2015, the Scheme is closed to new members except where provided for in Schedule 3.

Section 32 Amendment of rule A.1 in Schedule 1 to the RFPS Regulations 2005

Rule A.1(interpretation: general) in Schedule 1 to the RFPS Regulations 2005 is amended by inserting at the appropriate place—

“AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ;

Section 33 Amendment of Rule G.1 in Schedule 1 to the RFPS Regulations 2005

Rule G.1(application of Part G) in Schedule 1 to the RFPS Regulations 2005 is amended by—

(a) in paragraph (1), after “pensioner member or deferred member of the Scheme” inserting “(whether or not they are also a pensioner member of the AFPS 2015)”;

(b) after paragraph (1)(b), inserting—

or

(c) is re-engaged in service by virtue of which the person is eligible for membership of the AFPS 2015.

(c) after paragraph (2) (b), omit “and”; and

(d) after paragraph (2)(c), inserting—

and

(d) where sub-paragraph (1)(c) applies, the “old service pension” includes any AFPS 2015 pension.

Section 34 Insertion of new Schedule into the RFPS Regulations 2005

The RFPS Regulations 2005 are amended by the insertion after Schedule 2 to the new Schedule 3 contained in Schedule 5 to this Instrument.

Section 35 Amendment of the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010

The Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010 (“AF(RRGES) (No.2) Order”) is amended according to the provisions in this Part.

Section 36 Amendment of article 2 (interpretation) of the AF(RRGES) (No.2) Order

Article 2 (interpretation) of the AF(RRGES)(No.2) Order is amended by inserting in the appropriate place—

(a) ““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ;”;

(b) “transition member” means a person—

(a) who is a member of the AFPS 1975 by virtue of their pensionable service under the AFPS 1975 before 1st April 2015; and

(b) who is also a member of the AFPS 2015 by virtue of their pensionable service on and after 1st April 2015;

Section 37 Amendment of article 27 (interpretation of Part 4) of the AF(RRGES) (No.2) Order

Article 27(2) of the AF(RRGES) (No.2) Order is amended by substituting—

“ill-health pension” means—

service invaliding retired pay or pension under the AFPS 1975,

an ill-health pension under regulation 51 of the Armed Forces Pension Regulations 2014, or

an ill-health pension under regulation 52 of the Armed Forces Pension Regulations 2014.

for—

“ill-health pension” means service invaliding retired pay or pension under the AFPS 1975;

Section 38 Amendment of article 30 (factors affecting the amount of commutable pension) of the AF(RRGES) (No.2) Order

Article 30 of the AF(RRGES) (No.2) Order is amended by inserting—

(a) after “a person” in sub-paragraph (1) “,not including a transition member,”,

(b) after sub-paragraph (1)—

(1A) Subject to article 32, the maximum lump sum which can be commuted by a transition member is calculated by application of the following formula—

where—

A in the case of an officer is the 34 year rate and in the case of someone who is not an officer is the 37 year rate;

B is the aggregate lump sum from reckonable and pensionable service in AFPS 1975 and AFPS 2015;

C is the number of years of AFPS 1975 service; and

D is the total number of years of reckonable and pensionable service in AFPS 1975 and AFPS 2015.

Section 39 Amendment of article 32 (misconduct) of the AF(RRGES) (No.2) Order

Article 32 of the AF(RRGES) (No.2) Order is amended by—

(a) numbering the existing text as paragraph (1),

(b) after “the 37 year rate.” inserting—

(2) For a transition member the figure denoted by A in article 30(1A) is replaced by the appropriate amount from paragraph (1).

Section 40 Amendment of article 35 (entitlement to resettlement grants) of the AF(RRGES) (No.2) Order

Article 35 of the AF(RRGES) (No.2) Order is amended by—

(a) substituting for the existing paragraph (1)—

(1) A person who ceases to be in service as a member of the armed forces is entitled to a lump sum payment if the person—

(a) was, immediately before ceasing service, an active member of the AFPS 1975 or has opted-out;

(b) has the relevant years of service;

(c) is not entitled to the immediate payment of a pension under the AFPS 1975;

(d) is not entitled to the immediate payment of a pension under the AFPS 2015;

(e) is not entitled to an early departure payment under regulations 8 and 9 of the EDP 2015; and

(f) either—

(i) has not previously received a payment under the AFRGS 2010; or

(ii) has made a repayment in respect of a payment previously received in sub-paragraph (i).

(b) substituting in paragraph (2)—

“relevant years of service”

for—

“relevant years of reckonable service”

(c) inserting after paragraph (5)—

(6) Transition members are not entitled to a lump sum payment under regulation 16 of the EDP 2015.

Section 41 Amendment of the Armed Forces Pension Regulations 2014

The Armed Forces Pension Regulations 2014 are amended by inserting into regulation 2 (interpretation) at the appropriate place—

“AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014.

Section 42 Amendment of the Armed Forces Early Departure Payments Scheme Regulations 2014

The Armed Forces Early Departure Payments Scheme Regulations 2014 are amended by inserting into regulation 2 (interpretation) at the appropriate place—

“EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014.

Section 1 Interpretation

In this Schedule—

“AFPS 1975” means the Armed Forces Pension Scheme 1975;

“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;

“connected scheme” means another statutory pension scheme that is connected with the AFPS 1975 scheme within the meaning of section 4(6) of the 2013 Act ;

“EDP Regulations 2014” means the Armed Forces Early Departure Payments Scheme Regulations 2014 ;

“full protection member” has the meaning given in Part 2;

“protection period” has the meaning given in paragraph 5;

“scheme employment” has the meaning given in regulation 13 of the AFP Regulations 2014;

“transition date” in relation to a transition member means 1st April 2015 or, if later, the day a person ceased to be a full protection member of the AFPS 1975;

“transition member” means a person—

who is a member of AFPS 1975 by virtue of their pensionable service under the AFPS 1975 before the transition date; and

who is also a member of the AFPS 2015 by virtue of their pensionable service under that scheme;

“the 2013 Act” means the Public Service Pensions Act 2013 ;

“transfer payment” means payment of a transfer value; and

“transfer value” has the meaning given in Part 8 of the AFP Regulations 2014.

Section 2 Meaning of “continuity of service”

(1) For the purposes of this Schedule, a transition member (T) has continuity of service between pensionable service in the AFPS 1975 and pensionable service in the AFPS 2015 (“continuity of service”) unless T has a gap in service exceeding 5 years which—

(a) begins on or before T’s transition date; and

(b) ends on the day on which T becomes an active member of the AFPS 2015.

(2) For the purpose of sub-paragraph (1), during the period starting with 1st April 2015, T is not on a gap in service while T is in service which is pensionable under an existing scheme, a public body pension scheme or a scheme under section 1 of the 2013 Act.

Section 3 Commencement of active membership of the AFPS 2015 for a transition member

(1) A person who is a transition member on entering pensionable service under the AFPS 2015 who does not have continuity of service becomes an active member of the AFPS 2015 on the day the person begins pensionable service in a scheme employment.

(2) A person who is a transition member on entering pensionable service under the AFPS 2015 who has continuity of service (T) becomes an active member of the AFPS 2015—

(a) if T is in pensionable service in a scheme employment on T’s transition date, on that date; or

(b) if T is not in pensionable service in a scheme employment on T’s transition date, on the date T enters pensionable service in a scheme employment after that date.

Section 4 Full protection members of the AFPS 1975

(1) A person (P) is a full protection member of the AFPS 1975, where—

(a) P was a conditional full protection member of the AFPS 1975 on 31st March 2015 and on 31st March 2012; and

(b) unless P dies, P would reach age 55 on or before 1st April 2022.

(2) For the purpose of this paragraph, a member is a conditional full protection member of the AFPS 1975 on a given date if on that date—

(a) the member is in service in respect of which P is eligible to be a member of the AFPS 1975;

(b) the member is a fixed protection member of the AFPS 1975; or

(c) the member is in qualifying service under paragraph (c) of rule A.10(qualifying service) of the AFPS 1975.

(3) P ceases to be a full protection member of the AFPS 1975 when P ceases to be in pensionable service under the AFPS 1975.

Section 5 Exception for full protection member during protection period

(1) The protection period for a person (P) who is a full protection member of the AFPS 1975 is the period which—

(a) begins on 1st April 2015; and

(b) ends when P ceases to be a full protection member of the AFPS 1975.

(2) During the protection period—

(a) P is eligible to be in pensionable service under the AFPS 1975;

(b) section 18(1) of the 2013 Act does not apply in respect of that pensionable service; and

(c) benefits are to be provided under the AFPS 1975 to or in respect of P in relation to that pensionable service.

Section 6 Full protection member not eligible to join the AFPS 2015

(1) While a person (P) is a full protection member of the AFPS 1975, P is not eligible to be an active member of the AFPS 2015.

Section 7 Transition members not to receive early ill-heath benefits except in accordance with this Part

A transition member with continuity of service is not to receive early benefits on ill-health retirement except as provided by this Part.

Section 8 This Part not to apply to previous periods of service

If a transition member has an earlier period of service within the meaning of paragraph (2) of rule G.1 (application of this Part) of the AFPS 1975 that has not been aggregated with a later period of service under Part G of the AFPS 1975, this Part does not apply to the earlier service.