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The Armed Forces Pension Scheme Order 2005

Type Statutory-Instrument

Publication 2005-03-08

Last updated 2025-03-19

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(f) in the case of an AFPS 1975 transferee, the reckonable service he is entitled to count under the Scheme under rules K.3 to K.5. ...

(g) in the case of a Gurkha Pension Scheme transferee, the reckonable service the member is entitled to count under the Scheme under rule L.4 or L.5,

(h) in the case of a person whose service was gratuity-earning service before its terms were changed and the person meets the condition in rule A.7(1A), that period of gratuity-earning service, and

(i) in the case of a person who was paid a gratuity on the satisfactory completion of gratuity-earning service (as so defined) and has repaid that gratuity together with interest at the Bank of England base rate, calculated on a monthly basis, from the day after the last day of service in respect of which the gratuity was awarded to the day before the date of re-entry within the period of one year of becoming an active member of this Scheme, that completed service.

Calculation of periods of membership or service etc

A.9

(1) For the purposes of the Scheme, periods of membership and service are to be expressed in the first instance in complete 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.

Disregard of short breaks in service

A.10

(1) Subject to paragraph (1A), if an active member—

(a) ceases to serve in a capacity that qualifies him to belong to the Scheme, and

(b) after a period not exceeding 6 months rejoins the armed forces in such a capacity,

the reckonable service and qualifying service for the earlier service and for the later service is treated as a single period of service for all purposes.

(1A) Where an active member meets the conditions in paragraph (1)(a) and (b) and rejoins at a lower rank than the substantive rank held at the end of the earlier service, the member may opt for paragraph (1) to apply, such option may be exercised at any time during the later service.

(2) If an active member—

(a) opts to cease to be such a member whilst continuing to serve in a capacity that qualifies him to belong to the Scheme, and

(b) after a period not exceeding 6 months becomes such a member again,

the reckonable service and qualifying service for the earlier period of active membership and for the later period of such membership is treated as a single period of service for all purposes.

(3) Paragraphs (1) and (2) do not apply if before the time when the condition in paragraph (1)(b) or, as the case may be, paragraph (2)(b) is met, a pension has come into payment for the earlier period of service.

(4) Paragraph (1A) does not apply if before the time when the condition in paragraph (1)(b) is met, a pension has come into payment for the earlier period of service.

PART B — MEMBERSHIP

Eligibility: general

B.1

Persons with other pension arrangements

B.2

(1) Except as otherwise provided in these rules, a person is not eligible to be an active member of the Scheme in respect of his service if he belongs to the AFPS 1975 or any other occupational pension scheme in respect of that service.

(2) For the purposes of paragraph (1), a person is only taken to belong to another occupational pension scheme in respect of his service if the person who is the employer in relation to that scheme is making contributions to it in respect of that service.

Joining the Scheme on starting service

B.3

(1) A person who is eligible to be an active member of the Scheme because of service beginning on or after 6th April 2005 is treated as becoming such a member on the day when the service begins.

(2) Paragraph (1) does not apply if, before the end of the period of 3 months beginning with the day when the service begins or such longer period, if any, as the Secretary of State considers appropriate, the person opts not to belong to the Scheme.

(3) The option may only be exercised by notice in writing in such form as the Secretary of State requires.

(4) For the purposes of this rule, the option is treated as having been exercised on the date on which it is received by the Scheme administrator or the commanding officer responsible for general day to day administration connected with the service of the person exercising the option.

(5) If a person to whom paragraph (2) applies has paid any contributions under the Scheme, the contributions must be repaid to him.

(6) Paragraph (5) does not require the payment to the person of any additional amount which becomes payable by him in respect of national insurance contributions because he has not after all been a member of the Scheme during any period.

Joining the Scheme after service begins

B.4

(1) A person who is not an active member of the Scheme but is eligible to be one may opt to become such a member at any time before he attains pension age.

Paragraph (1) is subject to paragraphs (2) to (4).

(2) The option may only be exercised by the person giving notice in writing in such form as the Secretary of State requires.

(3) An option has no effect unless before that notice is given—

(a) the person exercising the option—

(i) makes a declaration about the state of his health in such form as the Secretary of State requires and,

(ii) if required, provides at his own expense such evidence relating to his health as the Secretary of State requests, and

(b) the Secretary of State, ... is satisfied that at the date on which the member makes the declaration the member is in good health.

(4) A person who has exercised the option under paragraph (1) may not exercise it again during the service by virtue of which he was eligible to exercise it.

(5) For the purposes of this rule, the option is treated as having been exercised on the date on which it is received by the Scheme administrator or, if it is sent to the commanding officer responsible for general day to day administration connected with the service of the person exercising the option, by or on behalf of that officer.

Leaving the Scheme

B.5

(1) A person who is an active member of the Scheme may opt to cease to be such a member.

(2) The option may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

(3) A member who exercises the option ceases to be an active member at the beginning of—

(a) the first pay period beginning on or after the date on which the option is exercised, or

(b) if the Secretary of State considers that period inappropriate, such later pay period as he considers appropriate.

PART C — CONTRIBUTIONS

Buying Added Years

Member’s option to pay contributions to increase service

C.1

(1) An active member may opt to make periodical contributions to the Scheme during the contractual option period to increase his reckonable service by an additional period.

This is subject to rule C.5 (restriction on pension debit members making contributions).

(2) The option may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

(3) A member may exercise the option under paragraph (1) more than once.

(4) If a member exercises the option under paragraph (1), the contributions are payable by deduction from his earnings—

(a) for so much of the member’s next relevant pay period as begins with the member’s birthday, and

(b) for all subsequent pay periods beginning during the contractual option period.

Cancellation of options

C.2

(1) A member who has exercised an option under rule C.1(1) may cancel it by giving the Scheme administrator notice in writing.

(2) If a member cancels such an option, the periodical contributions cease to be payable in respect of his pensionable earnings for the first pay period the Scheme administrator considers appropriate that begins on or after the date on which the Scheme administrator receives the notice.

Effect of making contributions

C.3

(1) If a member who has exercised an option under rule C.1(1) pays all the contributions required under the option, his reckonable service is increased by the whole of the additional period covered by the option (“the contractual added years”).

(2) If—

(a) a member pays some but not all of those contributions,

(b) because of rule C.1(6) the rate at which a member pays contributions under the option is reduced below the rate at which they would otherwise be payable,

(ba) a member has served on flexible terms during any part of the contractual option period,

(c) during any part of the period while he is paying contributions the member is on unpaid leave for a period which does not count as reckonable service, or

(d) more than one of sub-paragraphs (a) to (c) apply,

his reckonable service is increased as follows.

(3) For each contribution paid at the rate originally required under the contract the increase is—

$$CAYN$where—CAY is the contractual added years, andN is the total number of contributions the member was originally required to pay.This is subject to paragraph (5).$

(4) For each contribution paid at a reduced rate the increase is—

$$CAY×RRN×CR$where—CAY is the contractual added years,N is the total number of contributions the member was originally required to pay,RR is the reduced rate, andCR is the rate at which the contribution would be payable under the contract apart from the reduction.$

Absence from work

C.4

(1) If a member who has exercised an option under rule C.1(1) has a period of absence from work, the member may—

(a) cease to pay the contributions payable under the option, or

(b) pay the same amounts of contributions as would be payable if he were receiving pensionable earnings at the full rate.

Restriction on pension debit members making contributions

C.5

A pension debit member may not opt under rule C.1 to make contributions to the Scheme so as to replace any rights debited to him as a consequence of a pension sharing order with any rights which he would not have been able to acquire (in addition to the debited rights) had the order not been made.

Purchase of added years for members seconded to NATO or the UN etc

C.6

(1) This rule applies if an active member is seconded during any period—

(a) to the United Nations or the North Atlantic Treaty Organisation, or

(b) under arrangements with any other organisation or person under which persons who are in service as a result of which they are eligible to belong to the Scheme are seconded into other service.

(2) If at the end of that period the member resumes service in the armed forces in which he is an active member of the Scheme, he may opt to make a single lump sum contribution to the Scheme to increase his reckonable service by an additional period equal to the length of his secondment.

(3) The option may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

(4) If a member exercises the option under paragraph (2) and pays a contribution equal to the aggregate amount of—

(a) any contributions returned to him by the pension arrangement to which he belonged in respect of his service during the secondment, and

(b) any lump sum paid to him on leaving the organisation or to the person to whom he was seconded as a severance payment,

the member is entitled to count the period of his secondment as reckonable service.

(5) If the aggregate amount mentioned in paragraph (4) is less than the amount determined by the Scheme actuary to be the amount required to be paid in order to increase the member’s reckonable service by the period of his secondment, the Secretary of State must make a contribution to the Scheme equal to the difference.

Repayment of Contributions

Repayment of contributions

C.7

(1) The contributions made by a member under this Part are not repayable in any circumstances except if—

(a) paragraph (2) applies, or

(b) Chapter 5 of Part 4 of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds) applies and the payment is made in accordance with that Chapter.

(2) This paragraph applies where—

(a) an active member who is not a pensioner member ceases to be an active member of the Scheme and is not entitled to the immediate payment of a pension,

(b) he does not fall within rule D.2(1)(a) or (b),

(d) Chapter 5 of Part 4 of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds) does not apply.

(3) Where paragraph (2) applies, the former member is entitled to be paid an amount equal to the sum of the contributions made by him under this Part, less—

(a) the amount of any contributions equivalent premium paid in respect of the member, and

(b) an amount equal to the income tax payable under section 205 of the Finance Act 2004[^f00029] (short service refund lump sum charge) by virtue of the repayment.

(4) Where paragraph (1)(b) applies, the former member is entitled to be paid the amount to which he is entitled under Chapter 5 of Part 4 of the Pension Schemes Act 1993, less the sum of the amounts mentioned in paragraph (3)(a) and (b).

PART D — RETIREMENT BENEFITS

Entitlement to Benefits

Retirement after reaching pension age

D.1

(1) The general rule is that a member is entitled to a pension for life and a lump sum if—

(a) in the case of a member other than a fixed protection member, the member ceases to be in pensionable service at or after reaching pension age; or

(b) in the case of a fixed protection member, the member ceases to be in service at or after reaching pension age.

(2) The pension and the lump sum become payable immediately on the member ceasing to be in service.

(3) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member’s final pensionable earnings by the member’s reckonable service, expressed as a number of years.

(4) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

(5) This rule does not apply to pensions derived from pension credit rights.

Retirement before reaching pension age

D.2

(1) A member who ceases to be in service by virtue of which he is eligible to be an active member of the Scheme before reaching pension age is entitled to a pension for life and a lump sum if the member attains pension benefit age or, in the case of a member who is within paragraph (7) of this rule, the member attains pension age and either—

(a) he has at least two years' qualifying service, or

(b) he is entitled to short service benefit by virtue of section 71 of the Pension Schemes Act 1993 (basic principles as to short service benefit) because of a transfer value payment having been accepted by the Scheme under Part F (transfers).

(2) The pension and the lump sum become payable immediately on the member attaining pension benefit age or, in the case of a member who is within paragraph (7) of this rule, attaining pension age.

(3) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member’s final pensionable earnings by the member’s reckonable service, expressed as a number of years.

(4) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

(5) This rule does not apply to pensions derived from pension credit rights.

(6) For the application of this rule in the case of certain Gurkha Pension Scheme transferees, see rules L.5 and L.7(1).

(7) A member is within this paragraph if the member satisfies the following two conditions—

(a) the first condition is that the member has attained at least 54 years and 274 days of age but not yet the pension age; and

(b) the second condition is that the Scheme administrator is satisfied that the member intends either—

(i) to enter civilian employment which would not be available if the member continued in service until pension age; or

(ii) to undertake a course of full time education, or a training course, which starts before the time at which the member reaches pension age.

Pension credit members' pensions

D.3

(1) The general rule is that a pension credit member is entitled to a pension for life and a lump sum derived from the member’s pension credit rights.

(2) But no lump sum is payable if the pension debit member is a pensioner member when the pension sharing order under which the member is entitled to the pension credit takes effect.

(3) The pension and any lump sum become payable—

(a) immediately on the pension credit member reaching pension benefit age; or

(b) if it is later, when the pension sharing order under which the member is entitled to the pension credit takes effect.

(4) If no lump sum is payable under this rule, the pension must be of such an amount that its value is equal to the member’s pension credit, as calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to the Welfare Reform and Pensions Act 1999.

(5) If a lump sum is payable under this rule—

(a) the lump sum so payable must be equal to three times the amount of the annual pension so payable, and

(b) the pension so payable must be of such an amount that its value, when aggregated with the lump sum so payable, is equal to the member’s pension credit, as calculated in accordance with those regulations.

(6) If a pension credit member exercises the option under rule D.4, the Secretary of State must be reasonably satisfied that the total value of the benefits payable by virtue of its exercise is at least equal to the amount described in regulation 11 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (value of alternatives to pension credit benefit).

Early payment of pensions with actuarial reduction

D.4

(1) A member who is not entitled to immediate payment of a pension under rule D.1, D.2 or D.3 may opt for immediate payment of a reduced pension and lump sum if the member has reached pension age and either paragraph (2) or paragraph (3) applies.

(2) This paragraph applies if the member—

(a) meets the condition in rule D.2(1)(a) or (b); and

(b) has ceased to be in service that qualifies him to belong to the Scheme.

(3) This paragraph applies if—

(a) the member is a pension credit member; and

(b) the pension sharing order from which the pension credit rights derive has taken effect.

(4) If a member exercises the option under this rule, the amount of the annual pension to which the member becomes entitled is first calculated as mentioned in rule D.2(3) or D.3(5) and then that amount is reduced by such amount as the Secretary of State determines after consulting the Scheme actuary.

(5) If a member exercises the option under this rule, the amount of the lump sum to which the member becomes entitled is first calculated as mentioned in rule D.2(4) or D.3(5) and then that amount is reduced by such amount as the Secretary of State determines after consulting the Scheme actuary.

(6) The option under this rule may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

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

D.5

(1) An active member who ceases to be in service by virtue of which he is eligible to be an active member of the Scheme is entitled to immediate payment of a pension and a lump sum before reaching pension age if—

(a) in the opinion of the Secretary of State the member has suffered a permanent breakdown in health involving incapacity for any full-time employment,

(aa) the Secretary of State has received evidence from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and

(b) the member either—

(i) has at least two years' qualifying service, or

(ii) is entitled to short service benefit by virtue of section 71 of the Pension Schemes Act 1993 (basic principles as to short service benefit) because of a transfer value payment having been accepted by the Scheme under Part F (transfers).

(2) For the purposes of this rule and rule D.8 a member’s breakdown in health is “permanent” if, in the opinion of the Secretary of State, ... it will continue at least until the member reaches pension age.

(3) For the purpose of these Rules a member’s breakdown in health involves incapacity for any full-time employment if, in the opinion of the Secretary of State, ... as a result of the breakdown the member is incapable of any gainful full-time employment.

(4) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member’s final pensionable earnings by N.

(5) For the purposes of paragraph (4), N is equal to the greater of—

(a) the sum of the member’s reckonable service and half of the further reckonable service which he would have been able to count under the Scheme if he had remained an active member from the date he ceased to be such a member until pension age (both expressed as a number of years), and

(b) 20.

(6) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

(7) For the application of this rule in the case of certain Gurkha Pension Scheme transferees, see rules L.5 and L.7(1).

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

D.6

(1) An active member who ceases to be in service by virtue of which he is eligible to be an active member of the Scheme is entitled to immediate payment of a pension and a lump sum before reaching pension age if—

(a) in the opinion of the Secretary of State the member has suffered a breakdown in health as a result of which his capacity for gainful employment is significantly impaired,

(aa) the Secretary of State has received evidence from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and

(b) the member either—

(i) has at least two years' qualifying service, or

(ii) is entitled to short service benefit by virtue of section 71 of the Pension Schemes Act 1993 (basic principles as to short service benefit) because of a transfer value payment having been accepted by the Scheme under Part F (transfers), and

(2) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member’s final pensionable earnings by N.

(3) For the purposes of paragraph (2), N is equal to the sum of the member’s reckonable service and one-third of the further reckonable service which he would have been able to count under the Scheme if he had remained an active member from the date he ceased to be such a member until pension age (both expressed as a number of years).

(4) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

(5) For the application of this rule in the case of certain Gurkha Pension Scheme transferees, see rules L.5 and L.7(1).

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

D.7

(1) A former active member is entitled to immediate payment of a pension and a lump sum before reaching pension benefit age if—

(a) in the opinion of the Secretary of State the member has suffered a permanent breakdown in health involving incapacity for any full-time employment (see rule D.5(3) and paragraph (4) below),

(aa) the Secretary of State has received evidence from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and

(b) the member either—

(i) has at least two years' qualifying service, or

(ii) is entitled to short service benefit by virtue of section 71 of the Pension Schemes Act 1993 (basic principles as to short service benefit) because of a transfer value payment having been accepted by the Scheme under Part F (transfers), and

(c) the member makes a claim for immediate payment of the pension and lump sum under this rule to the Scheme administrator.

(2) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member’s final pensionable earnings by the length of the member’s reckonable service, expressed as a number of years.

(3) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

(4) For the purposes of this Rule a member’s breakdown in health is “permanent” if, in the opinion of the Secretary of State, it will continue at least until the member reaches pension benefit age.

Member’s requests for review of ill-health awards

D.8

(1) This rule applies if a member—

(a) is entitled to a pension under rule D.6, or

(b) has received a lump sum under article 16 of the Armed Forces Early Departure Payments Scheme Order 2005[^f00030] (lump sum awards: incapacity for armed forces service) (“article 16”).

(2) The member may request a review of his condition under this rule—

(a) at any time before the fifth anniversary of the day on which the member became entitled to the pension or lump sum, or

(b) after that time if in the opinion of the Secretary of State the circumstances are exceptional.

(3) The request must be made by notice in writing in such form as the Secretary of State requires.

(4) If a member within paragraph (1)(a) requests a review of his condition under this rule, the Secretary of State must—

(a) review the question whether the member has suffered a permanent breakdown in health involving incapacity for any employment (see rule D.5(2) and (3)), and

(b) if, ... he is of the opinion that he has suffered such a breakdown, determine whether—

(i) the member had suffered such a breakdown at the time when he became entitled to the pension under rule D.6, or

(ii) the condition by virtue of which he became so entitled has deteriorated so that he suffered such a breakdown later.

(5) If—

(a) on any review under paragraph (4), ... the Secretary of State is of the opinion that the member—

(i) has suffered such a breakdown as is mentioned in paragraph (4)(a), and

(ii) had done so at the time when he became entitled to the pension under rule D.6, and

(b) the member meets the condition in rule D.5(1)(b),

then the member’s entitlement under rule D.6 ceases and rule D.5 applies as if the conditions mentioned in that rule were met at the time the member ceased to be in service by virtue of which he was eligible to be an active member of the Scheme, and accordingly the member immediately becomes entitled to payment of such an amount as is specified in paragraph (6).

(6) The amount referred to in paragraph (5) is such an amount as represents the sum of—

(a) the difference between the pension payments that have been made to the member under rule D.6 and those to which he was actually entitled under rule D.5, and

(b) the difference between the lump sum paid to him under rule D.6 and the lump sum to which he was actually entitled under rule D.5.

(7) If on any review under paragraph (4), the Secretary of State is of the opinion that—

(a) the member has suffered such a breakdown as is mentioned in paragraph (4)(a), but

(b) the condition by virtue of which he became entitled to the pension under rule D.6 has deteriorated so that he suffered such a breakdown later,

then the member’s entitlement to a pension under rule D.6 ceases and the member is entitled to a pension calculated in accordance with paragraph (7A) from the date on which the review was requested.

(7A) The pension to which a member is entitled under paragraph (7) shall consist of—

(a) a pension calculated under rule D.5, and

(b) an increase in that pension by an amount equivalent to the amount that a pension would be increased if the option to exchange a lump sum under rule D.10 were exercised where the amount of the lump sum exchanged is the difference between the lump sum paid to the member under rule D.6 and the lump sum which the member would have received had the member been entitled to it under rule D.5.

(8) If a member within paragraph (1)(b) requests a review of his condition under this rule, the Secretary of State must—

(a) review the question whether the member has suffered a breakdown in health as a result of which his capacity for gainful employment is significantly impaired, and

(b) if, ... he is of the opinion that the member has suffered such a breakdown, determine whether—

(i) the member had suffered such a breakdown at the time when he became entitled to payment of the lump sum under article 16, or

(ii) the condition by virtue of which he became so entitled has deteriorated so that he suffered such a breakdown later.

(9) If—

(a) on any review under paragraph (8), ... the Secretary of State is of the opinion that the member—

(i) has suffered such a breakdown as is mentioned in paragraph (8)(a), and

(ii) had done so at the time when he became entitled to payment of the lump sum under article 16, and

(b) the conditions in rule D.6(1)(aa) and (b) are met,

then rule D.6 applies from the time when the ill-health condition (as defined in paragraph 1 of Schedule 28 to the Finance Act 2004) is first met, and accordingly the member is entitled to a lump sum under that rule and to a pension under that rule payable from that time (subject to paragraph (12)).

(10) If—

(a) on any review under paragraph (8), ... the Secretary of State is of the opinion that—

(i) the member has suffered such a breakdown as is mentioned in paragraph (8)(a), but

(ii) the condition by virtue of which he became entitled to payment of the lump sum under article 16 has deteriorated so that he suffered such a breakdown later, and

(b) the conditions in rule D.6(1)(aa) and (b) are met,

then rule D.6 applies from the date when the ill-health condition (as defined in paragraph 1 of Schedule 28 to the Finance Act 2004) is first met, and accordingly the member is entitled to a lump sum under that rule and to a pension under that rule payable from that date (subject to paragraph (12)).

(11) If paragraph (9) or (10) applies and the lump sum paid to the member under article 16 was less than the lump sum to which he is entitled under rule D.6, the lump sum to which the member is so entitled is a lump sum equal to the difference.

(12) If paragraph (9) or (10) applies and the lump sum paid to the member under article 16 exceeded the lump sum to which he is entitled under rule D.6, then the member is not entitled to a lump sum under D.6 and the excess must be repaid.

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

D.9

(1) This rule applies if—

(a) a member is entitled to a pension under rule D.5, D.6 or D.7, and

(b) it appears to the Secretary of State that there is evidence that he would not be of the same opinion as to the member’s condition if he reconsidered the question as the opinion by virtue of which the entitlement arose.

(2) The Secretary of State may review the member’s condition under this rule.

(3) If, on a review under this rule in the case of a member who is entitled to a pension under rule D.5, ... the Secretary of State is of the opinion—

(a) that the member has not suffered such a breakdown as is mentioned in D.5(1)(a), but

(b) that the member meets the condition in rule D.6(1)(a),

the Secretary of State may determine that the member is to cease to be entitled to a pension under rule D.5 and to become entitled to a pension under rule D.6 at the end of the day on which the determination is made.

(4) If, on a review under this rule in the case of a member who is entitled to a pension under rule D.6, ... the Secretary of State is not of the opinion mentioned in paragraph (1)(a) of that rule, the Secretary of State may determine that the member is to cease to be entitled to a pension under rule D.6 at the end of the day on which the determination is made.

(5) If, on a review under this rule in the case of a member who is entitled to a pension under rule D.7, ... the Secretary of State is not of the opinion mentioned in paragraph (1)(a) of that rule, the Secretary of State may determine that the member is to cease to be entitled to a pension under that rule at the end of the day on which the determination is made.

Options to Change Benefits

Option to exchange lump sum for pension

D.10

(1) A member may opt to exchange the whole or any part of the lump sum to which he would otherwise be entitled under this Part for an increase—

(a) in the amount of pension payable to himself under these Rules, or

(b) in the amount of pension payable to himself and to any other person under these Rules as a result of his membership of the Scheme.

(2) Where a member so opts, the pension in respect of which he exercises the option is to be increased as from the date it is otherwise payable by so much as in the opinion of the Scheme Actuary is equivalent in value to the amount of the whole or, as the case may be, the relevant part of the lump sum in question.

(3) A member who has exercised the option under paragraph (1) ceases to be entitled to payment of so much of the lump sum as is affected by the option.

(4) Paragraph (3) applies whether or not the pension that is to be increased as a result of the option actually becomes payable.

(5) The option under this rule may only be exercised by giving notice in writing to the Scheme administrator, in such form as the Secretary of State requires, during the period of 6 months ending with the day on which the person becomes entitled to the lump sum in question.

(6) For the purposes of this rule, the option is treated as having been exercised on the date on which it is received by the Scheme administrator.

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

D.11

(1) Before a pension becomes payable to an active member, a deferred member or a pension credit member under this Part or at the time when a pension becomes payable under rule D.5 (early payment of benefits: serious ill-health), the member may opt to exchange the whole pension for a lump sum if the Secretary of State—

is satisfied that the member is expected to live for less than one year, and

has received evidence from a registered medical practitioner that that is the case.

(2) Where an active member or a deferred member so opts, he is to be paid as soon as is reasonably practicable an amount equal to the amount of the annual pension, multiplied by 5.

(2A) Where a pension credit member so opts, he is to be paid as soon as is reasonably practicable an amount that in the opinion of the Scheme actuary is equivalent to the value of his pension credit rights.

(3) In paragraph (2) “the amount of the annual pension” means the amount of the annual pension to which the member would be entitled under this Part apart from the option, calculated as at the time payment would otherwise first be due (but disregarding any service that the member might have accrued if he had continued in service until that time).

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) The option under this rule may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

Pension Debit Members and Pension Credit Members

Reduction in pension debit member’s benefits

D.12

Pension credit member’s rights

D.13

(1) Where regulation 7(5) of the Pension Sharing (Pension Credit Benefit) Regulations 2000[^f00031] (early or deferred retirement) applies, the Secretary of State must be reasonably satisfied that the requirements of that regulation have been met.

(2) Section 68A(2)(a) of the Pension Schemes Act 1993[^f00032] (safeguarded rights) applies to the safeguarded rights of pension credit members.

(3) Benefits that are attributable to a pension credit may not be aggregated with any other benefits to which the pension credit member is entitled under the Scheme.

Allocation

Election to allocate pension

D.14

(1) An active member or deferred member may elect to allocate a part of the member’s annual pension under the Scheme to the member’s spouse or civil partner or a person who in the opinion of the Secretary of State meets one of the conditions specified in paragraph (2).

(2) The conditions are—

(a) that the person is financially wholly or mainly dependent on the member, or

(b) that the member and the person are financially interdependent.

(3) But no election may be made in respect of a pension payable under rule D.5, D.6 or D.7.

(4) The member may not elect to allocate more than the permitted percentage of the member’s annual pension (before any exercise of the option under rule D.10: option to exchange lump sum for pension).

(4A) In paragraph (4) “the permitted percentage” means 37.5% or such lower percentage as appears to the Scheme administrator to be capable of being allocated under this rule without risking that a part of the pension to which any person becomes entitled on the death of the member after 75 does not qualify as a dependants' scheme pension for the purposes of section 167 of the Finance Act 2004 (the pension death benefit rules) (see paragraphs 16 to 16B of Schedule 28 to that Act).

(5) If a member wishes to allocate pension to two or more persons—

(a) he must make a separate election in respect of each of the persons, and

(b) the limit under paragraph (4) applies to the aggregate amount allocated.

(6) If the member is entitled to a guaranteed minimum pension, the member may not elect to allocate more than the amount by which the member’s annual pension (before any exercise of the option under rule D.10) exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the Scheme actuary.

(7) If—

(a) an election does not comply with paragraph (4) or (6), or

(b) taken together the member’s elections do not so comply,

the Scheme administrator may treat the election or, as the case may be, each of the elections, as allocating such smaller amount as would result in the election, or the elections taken together, so complying.

Procedure for election under rule D.14

D.15

(1) An election under rule D.14 may only be made on or before the date advised to the member by the Scheme administrator (“the closing date”).

(2) A member may at any time on or before the closing date—

(a) revoke an election under that rule, or

(b) amend such an election by altering the amount allocated by it.

(3) An election under that rule and any revocation or amendment of such an election must be made in writing in such form as the Secretary of State requires and be lodged with the Scheme administrator.

(4) Subject to paragraphs (5) and (6), an election under rule D.14 takes effect on the closing date.

(5) The election has no effect if—

(a) the member dies before that date,

(b) it is in favour of a person who dies before that date, or

(c) the Secretary of State is not satisfied that at the time when the election is made that person is a person within rule D.14(1).

(6) The election has no effect unless—

(a) before the closing date the member has made a declaration about the state of his health in such form and, if required, has provided such evidence relating to his health, as the Secretary of State has requested, and

(b) ... the Secretary of State is satisfied that at the date on which the member makes the declaration the member is in good health.

Effect of allocation

D.16

(1) Where an election under rule D.14 for the allocation of a member’s pension to another person (“the beneficiary”) has taken effect—

(a) the member’s pension is reduced accordingly (even if the beneficiary predeceases the member), and

(b) if the beneficiary survives the member, on the member’s death the beneficiary becomes entitled to the payment of a pension for life of such amount as the Secretary of State may determine, after consultation with the Scheme actuary, having regard—

(i) to the amount of the allocation to the beneficiary, and

(ii) to the beneficiary’s age and sex.

(2) But the Secretary of State may withhold payment from the beneficiary if paragraph (3), (4) or (5) applies.

(3) This paragraph applies if—

(a) the member dies before the expiry of the period of two years beginning with the date on which the election takes effect, and

(b) the Secretary of State is satisfied that the member made a false declaration about the state of his health in connection with making the election.

(4) This paragraph applies if the Secretary of State is of the opinion that the member made the election under duress.

(5) This paragraph applies if the Secretary of State is of the opinion that the member was mentally impaired at the time when he made the election and would not have made the election apart from the impairment.

(6) If the Secretary of State proposes to withhold payment under paragraph (2), he must notify the person in writing that he proposes to do so.

(7) 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 Pension Schemes Act 1993[^f00033] (investigations: the Pensions Ombudsman),

in respect of any decision made under paragraph (2).

(8) References in these Rules to pensions under this Part do not include pensions under this rule.

Contracting-out Obligations (GMPs etc.)

Guaranteed minimum pensions etc

D.17

(1) Paragraphs (2) to (5) apply where a member has a guaranteed minimum under section 14 of the Pension Schemes Act 1993 in relation to benefits under the Scheme.

(2) If apart from this rule—

(a) no pension would be payable to the member under the Scheme, or

(b) the weekly rate of the pension payable would be less than the guaranteed minimum,

a pension, the weekly rate of which is equal to the guaranteed minimum, is payable to the member for life from the date on which the member reaches state pension age.

(3) If—

(a) when the member reaches state pension age he is still in employment (whether or not it is scheme employment), and

(b) if it is not scheme employment, he consents to a postponement of his entitlement under paragraph (2),

paragraph (2) does not apply until he leaves employment.

PART E — DEATH BENEFITS

Pensions for Adult Dependants

Surviving spouses' and civil partners' pensions

E.1

(1) If an active member, a deferred member or a pensioner member dies leaving a surviving spouse or civil partner, the surviving spouse or civil partner is entitled to a pension for life.

(2) Paragraph (1) does not apply if the member is an active member who would not have qualified for a pension under rule D.2 (retirement before reaching pension age) if his service had ceased on the date of death otherwise than by reason of death.

(3) The Secretary of State may withhold the pension—

(a) where it would be payable to a surviving spouse, if the member and the surviving spouse married less than six months before the member’s death, and

(b) where it would be payable to a surviving civil partner, if the civil partnership was formed less than six months before the member’s death.

(4) Paragraph (3) is subject to rule E.28 (guaranteed minimum pensions for surviving spouses).

(5) Where a deceased active, deferred or pensioner member was—

(a) a man or a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b) at the time of the deceased member’s death, the deceased member was married, and that marriage subsisted before the time when the certificate was issued,

the surviving spouse of the deceased member is to be treated for the purpose of these Rules as if the certificate had not been issued.

Other adult dependants' pensions

E.2

(1) If an active member, a deferred member or a pensioner member dies leaving a surviving adult dependant and no surviving spouse or civil partner, the Secretary of State may award the surviving adult dependant a pension for life.

(2) Paragraph (1) does not apply if the member is an active member who would not have qualified for a pension under rule D.2 (retirement before reaching pension age) if his service had ceased on the date of death otherwise than by reason of death.

(3) A person is a surviving adult dependant in relation to a member for the purposes of this rule if the person satisfies the Secretary of State that at the time of the member’s death—

(a) the person and the member were cohabiting as partners in an exclusive and substantial relationship,

(b) the person and the member were not prevented from—

(i) marrying, or prior to the date on which section 1 of the Marriage (Same Sex Couples) Act 2013 came fully into force would not have been so prevented apart from both being of the same sex, or

(ii) forming a civil partnership, prior to the date on which the Civil Partnership (Opposite-sex Couples) Regulations 2019 came into force or would not have been so prevented apart from being of the opposite sex to each other, and

(c) either the person was financially dependent on the member or the person and the member were financially interdependent.

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

E.3

(1) This rule applies in the case of a deceased active member, other than an active member who would not have qualified for a pension under rule D.2 if his service had ceased on the date of death otherwise than by reason of death.

(2) The annual amount of the pension payable under rule E.1 (surviving spouses' and civil partners' pensions) and rule E.2 (other adult dependants' pensions) is the appropriate fraction of the member’s final pensionable earnings multiplied by RS, where RS is the higher of—

(a) N for the purposes of rule D.5(4) (early payment of benefits: active members with permanent serious ill-health) if the member had become entitled to a pension under rule D.5 on the date of death, and

(b) the member’s reckonable service at the date of death in years.

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

E.4

(1) In the case of a deceased deferred member, the annual amount of a pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated by multiplying the appropriate fraction of the member’s final pensionable earnings by the member’s reckonable service at the date of death in years.

(2) The appropriate fraction is 1/112.

(3) For the purposes of paragraph (1)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) reckonable service exceeding 37 1/3 years does not count.

(4) This rule is subject to rule E.3(4) (no amount payable under this rule in certain cases where the member was both an active member and a deferred member).

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

E.5

(1) In the case of a deceased pensioner member, the annual amount of a pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated by multiplying the appropriate fraction of the member’s final pensionable earnings—

(a) if the member’s pension was calculated under rule D.1(3), D.2(3) or D.7(2), by the reckonable service mentioned in that rule,

(b) if the member’s pension was calculated under rule D.4(4), by the reckonable service used for the first calculation mentioned in that rule, and

(c) if the member’s pension was calculated under rule D.5(4) or D.6(2), by the figure that is N for the purposes of that rule.

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

E.6

(1) Where on the death of a member a pension is payable under rule E.1 or E.2 to a person (“the beneficiary”) who is more than 12 years younger than the member, the amount of the pension calculated in accordance with rule E.3, E.4 or E.5 is reduced by the appropriate amount.

(2) That amount is the lesser of—

(a) 50% of the pension so calculated, or

(b) 2.5% × (N −12) of the pension so calculated,

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

(3) This rule is subject to rule K.8 and rule L.7.

Adult dependants entitled to two or more pensions under this Part

E.7

(1) This rule applies if—

(a) pensions are payable to a person under rule E.1 or E.2 in respect of more than one deceased member, and

(b) the total reference service for the pensions exceeds the dependant’s maximum.

(2) In this rule “reference service” means—

(a) in the case of a pension calculated under rule E.3, the higher of the figures given by rule E.3(2)(a) and (b),

(b) in the case of a pension calculated under rule E.4, the figure by which the appropriate fraction of the member’s final pensionable earnings is multiplied under rule E.4(1), and

(i) if the member’s pension was calculated under rule D.1(3), D.2(3) or D.7(2), the reckonable service mentioned in that rule,

(ii) if the member’s pension was calculated under rule D.4(4), the reckonable service used for the first calculation mentioned in that rule, and

(iii) if the member’s pension was calculated under rule D.5(4) or D.6(2), N for the purposes of that rule.

(3) In this rule “the dependant’s maximum” means—

(a) if none of the deceased members' reckonable service exceeded 35 years, 35 years,

(b) if one (and only one) of the deceased members' reckonable service exceeded 35 years, that member’s reckonable service (but not exceeding 37 1/3 years), and

(c) if two or more of the deceased members' reckonable service exceeded 35 years, the reckonable service of the member with the greatest reckonable service (but not exceeding 37 1/3 years).

(4) The total amount of the pensions payable as mentioned in paragraph (1) immediately after the death, excluding any amount that is attributable to any increase made as a result of rule D.10 (member’s option to exchange lump sum for pension), must not exceed such amount as results from the pensions being calculated by reference to the dependant’s maximum.

(5) In determining the amount of each of the pensions so payable to arrive at that total amount, the reference service for the pensions is to be reduced in such a manner as results in the greatest total amount.

(6) In determining for the purposes of the Scheme whether a pension is payable under rule E.1 or E.2, the fact that the amount of any pension that would otherwise be payable under that rule is reduced to nil as a result of this rule is to be disregarded.

Pensions for Eligible Children

Surviving children’s pensions

E.8

(1) If a member dies leaving an eligible child, a pension is payable in respect of the child.

(2) If the child ceases to be an eligible child after the date of death, the pension ceases to be payable unless and until the child becomes an eligible child again.

(3) This rule is subject to—

(a) rule E.13 (children born after the member’s death), and

(b) rule E.14 (children entitled to three or more pensions).

Meaning of “eligible child”

E.9

(1) In these Rules “eligible child”, in relation to a deceased member, means—

(a) a child of the member who meets any of conditions A to C, or

(b) any other child or young person who—

(i) meets any of those conditions, and

(ii) was financially dependent on the member at the date of death.

(2) Condition A is that the person is aged under 18.

(3) Condition B is that the person is in full-time education or vocational training and is aged under 23.

(4) Condition C is that, because of physical or mental impairment—

(a) the person is, in the opinion of the Scheme administrator, unable to engage in full-time gainful employment; and

(b) the person was dependent on the member at the date of the death.

(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) A person who is aged under 19 on the date when he ceases to be in full-time education is treated as being in such education until the first of the following dates after he so ceases—

(a) the second Monday in January,

(b) the second Monday after Easter Monday,

(d) his 19th birthday,

(e) the date on which he becomes engaged full-time in gainful employment.

(6) A person who at the date of a member’s death is aged under 23 and taking a break from full-time education or vocational training not exceeding 15 months is assumed to be continuing in such education or training during the break for the purpose of determining—

(a) whether the person is an eligible child at that date, and

(b) how many pensions are payable under rule E.8(1) immediately after that date.

(7) A person who is prevented from continuing in full-time education or vocational training on account of ill-health is treated for the purposes of condition B and paragraph (5) as continuing to be in such education or training until he is no longer so prevented.

(8) Paragraph (7) does not apply at any time when the person’s health is such that it is reasonable to assume that he will not be capable of undertaking any further education or training.

(9) Nothing in paragraph (6) or (7) requires a pension to be paid in respect of a person during the break in his education or training.

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

E.10

(1) This rule applies for determining in the case of a deceased active member the annual amount of a pension payable under rule E.8(1) (surviving children’s pensions).

(2) The amount of such a pension is determined by reference to the amount (“the member’s assumed pension”) that is the annual pension to which the member would have been entitled under rule D.5 (early payment of benefits: active members with permanent serious ill-health) if he had become entitled to a pension under that rule on the date of death (see rule D.5(4) and (5)).

(3) If—

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) one pension is payable at that time under rule E.8(1),

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

(4) If—

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) two or more pensions are payable at that time under rule E.8(1),

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

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

(5) If—

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) one, two or three pensions are payable at that time under rule E.8(1),

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

(6) If—

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) four or more pensions are payable at that time under rule E.8(1),

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

(7) If—

(a) immediately before the member’s death he was entitled to exercise the option under rule G.3 or G.4 (aggregation of service),

(b) no pension is payable under rule E.1 or E.2, and

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

(8) The cost condition is that in the opinion of the Secretary of State the total cost of providing benefits in respect of the member under the Scheme and the AFPS 1975 would have been greater if he had exercised that option than if he had not (apart from paragraph (7)).

(9) In forming an opinion for the purposes of paragraph (8), the Secretary of State must—

(a) assume that in the case of each child in respect of whom a pension is payable under rule E.8(1), or under the AFPS 1975 by virtue of any entitlement in respect of the member as a deferred member of the AFPS 1975, the pension will be payable for the period of 5 years or, if longer, until the child reaches 18, and

(b) disregard the effect of the Pensions (Increase) Act 1971 in respect of any period after the date of death.

(10) If—

(a) a pension is payable under rule E.8(1) in respect of a child,

(b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

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

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

E.11

(1) This rule applies for determining in the case of a deceased deferred member the annual amount of a pension payable under rule E.8(1) (surviving children’s pensions).

(2) The amount of such a pension is determined by reference to the annual pension to which the member would have been entitled under rule D.2, on the assumption that the pension had become payable on the date of death (“the member’s deferred pension”).

(3) If—

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) one pension is payable at that time under rule E.8(1),

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

(4) If—

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to—

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

(5) If—

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) one, two or three pensions are payable at that time under rule E.8(1),

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

(6) If—

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) four or more pensions are payable at that time under rule E.8(1),

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

(7) If—

(a) a pension is payable under rule E.8(1) in respect of a child,

(b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

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

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

E.12

(1) This rule applies for determining in the case of a deceased pensioner member the annual amount of a pension payable under rule E.8(1) (surviving children’s pensions).

(2) The amount of such a pension is determined by reference to the annual pension to which the member was entitled on the date of death (“the member’s pension”), except that—

(a) in a case where the member’s pension was increased under rule D.10 (option to exchange lump sum for pension), the member’s pension is taken for this purpose to exclude so much of the pension as is attributable to that increase, and

(b) where that option was exercised so as to increase the pension under rule E.8(1), this rule is without prejudice to that increase.

(3) If—

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) one pension is payable at that time under rule E.8(1),

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

(4) If—

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to—

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

(5) If—

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) one, two or three pensions are payable at that time under rule E.8(1),

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

(6) If—

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

(b) four or more pensions are payable at that time under rule E.8(1),

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

(7) If—

(a) a pension is payable under rule E.8(1) in respect of a child,

(b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member’s death, and

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

Children born after the member’s death

E.13

(1) For the purposes of rule E.8(1), a member is only treated as leaving a child who is born after the member’s death if the child is born before the first anniversary of the member’s death.

(2) No pension is payable under that rule in respect of any period before the child’s birth.

(3) But a pension in respect of a child born after the member’s death is treated as payable in respect of that period in determining the number of pensions payable immediately after the date of the member’s death for the purposes of rules E.10(3), (4), (5) and (6), E.11(3), (4), (5) and (6) and E.12(3), (4), (5) and (6) (amount of children’s pensions).

Children entitled to three or more pensions

E.14

(1) This rule applies if, apart from this rule, pensions would be payable in respect of the same child under rule E.8 as a result of the death of more than two members.

(2) Only the pensions payable as a result of the death of two of the members and which together result in the payment of the greatest annual amount in respect of the child are payable.

(3) Rule E.27(3) (under which benefits are payable in respect of dual capacity members under this Part as if two or more members of the kinds in question had died and the amounts payable are determined accordingly) does not apply for the purpose of determining for this rule the number of members as a result of whose deaths pensions are payable.

(4) But the amount of the pensions payable as the result of the death of any member to whom that rule applies are calculated in accordance with rule E.27 before applying paragraph (2).

Lump Sum Death Benefits

Death of a member: lump sum benefit

E.15

(1) If a member dies before reaching the age of 75, the Secretary of State may pay a lump sum to any of the following—

(a) the person or persons nominated by the member in accordance with rule E.21;

(b) if there is no person within sub-paragraph (a), to any person who is entitled to a pension under rule E.1 in respect of the member, or to whom a pension may be awarded under rule E.2 in respect of the member;

(c) if there is no person within sub-paragraph (a) or (b), to any person who, but for the application of rule E.1(2) or rule E.2(2), would be so entitled or to whom a pension may be awarded; or

(d) if there is no person within sub-paragraphs (a), (b) or (c), to the member’s personal representatives.

(2) If two or more persons have been so nominated and the Secretary of State decides to pay the lump sum to them—

(a) the payment is to be made to them in such proportions as the member has specified in the nomination, or

(b) if no proportions are so specified, in such proportions as the Secretary of State considers appropriate.

(3) This rule does not apply if—

(a) the member is—

(i) a pensioner member, or

(ii) a pension credit member who dies after any benefits attributable to his pension credit have become payable, and

(b) the death takes place—

(i) more than five years after the member’s pension becomes payable, or

(ii) after the member’s pension has been commuted under rule J.8 (commutation of small pensions).

(4) A lump sum paid under this rule may not be paid more than two years after the day on which the Scheme administrator first knew, or could reasonably be expected to have known, of the member’s death.

(5) The annual amount of pension paid to a person under this Part shall be increased by such amount as the Defence Council, after consulting with the Scheme actuary, may determine, if—

(a) the Defence Council have determined that a lump sum should be paid to the person under this Part, but the lump sum is not paid within two years of the date of the death; or

(b) the Defence Council have determined that, but for paragraph (1), a lump sum would have been paid to the person.

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

E.16

(1) In the case of an active member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to the member’s final pensionable earnings, multiplied by four.

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

E.17

(1) In the case of a deceased deferred member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to the amount of the lump sum to which the member would have become entitled under rule D.2 if the member had become entitled to a lump sum under that rule on the date of death.

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

E.18

(1) In the case of a deceased pensioner member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to—

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

(2) Any increases in the pension which might have become payable after the date of death are disregarded for the purposes of paragraph (1).

(3) If the member was both a pensioner member and an active member, the amount payable under rule E.16 is payable instead of the amount under paragraph (1).

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

E.19

(1) In the case of a pension credit member who dies before any benefits derived from his pension credit have become payable, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is calculated by multiplying by 3 the amount of the annual pension that would have been payable to him under rule D.3 if that pension had become payable to him on the date of his death.

(2) In the case of a pension credit member who dies after the pension under rule D.3 becomes payable, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to—

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

(3) Any increases in the pension which might have become payable after the date of death are disregarded for the purposes of paragraph (2).

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

E.20

(1) This rule applies where on a member’s death the Secretary of State is required under a court order to pay any part of any amount payable under rule E.15 to the member’s former spouse or civil partner.

(2) Where this rule applies the amount payable under that rule is determined as if no such order had been made, and then this Part applies as if the amount payable under rule E.15 were reduced by the amount payable under the court order.

Nominations for lump sum death benefits

E.21

(1) For the purposes of rule E.15 (death of a member: lump sum benefits)—

(a) a member may nominate one or more persons, and

(b) if he nominates two or more persons, he may specify in the nomination the proportions of the payment he wishes each of them to receive.

(2) The member must make his nomination by notice in writing to the Scheme administrator in such form as the Secretary of State may require or is willing to accept.

(3) A member may revoke or alter a nomination by a further notice in writing to the Scheme administrator in such form as the Secretary of State may require or is willing to accept.

(3A) This rule is subject to paragraph 61 of Schedule 3 (remediable service).

(4) The nomination of a person is invalid—

(a) if—

(i) the person nominated is an individual who was the spouse or civil partner of the member at the date the nomination was made and is not the spouse or civil partner of the member immediately before the member’s death, and

(ii) the member did not confirm the nomination by notice in writing to the Scheme administrator after the marriage or civil partnership ended, or

(b) if the person nominated is an individual who predeceases the member.

(5) If a person nominated is convicted of the offence of murder or manslaughter of the member, the person’s nomination is to be treated as invalid from the member’s death.

(6) If a person nominated is convicted of any other offence of which the unlawful killing or wounding of the member is an element, the Secretary of State may determine that the nomination is to be treated as invalid from the member’s death.

(7) Where the member marries or enters into a civil partnership on or after 1st December 2018, any existing nomination ceases to have effect from the date of the marriage or civil partnership.

General Provisions

Pension debit members

E.22

(1) This rule applies where the deceased member was a pension debit member.

(2) If the member was an active member—

(a) the pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated as mentioned in paragraph (3),

(b) the amount payable under rule E.8(1) by virtue of rule E.10 (surviving children’s pensions)—

(i) is first calculated as if the member were not a pension debit member (in particular, in determining the amount of the member’s assumed pension or annual pension for the purposes of rule E.10(2)), and

(ii) is then subject to any reduction required under section 31 of the Welfare Reform and Pensions Act 1999 (“section 31”), and

(3) The pension is first calculated under rule E.3 as if the member were not a pension debit member, and then it is reduced in the same proportion as the member’s assumed pension would have been reduced under that section if he had been entitled to it on the date of death.

(4) If the member was a deferred member—

(a) the amount of the pension payable under rule E.1 or E.2 is calculated by reference to the amount of the pension to which the member would have been entitled after any reduction under section 31, and

(b) the amount payable under rule E.8(1) by virtue of rule E.11—

(i) is first calculated as if the member were not a pension debit member (in particular, in determining the amount of the annual pension referred to in rule E.11(2)), and

(ii) is then subject to any reduction required under section 31.

(5) If the member was a pensioner member—

(a) the amount of the pension payable under rule E.1 or E.2 is calculated by reference to the amount of the pension to which the member was entitled (after the reduction under section 31), and

(b) the amount payable under rule E.8(1) by virtue of rule E.12—

(i) is first calculated as if the member were not a pension debit member (in particular, in determining the amount of the annual pension referred to in rule E.12(2) to which the member was entitled), and

(ii) is then subject to any reduction required under section 31.

(6) The effect of any option under rule D.10 (option to exchange lump sum for pension) to increase any pension is to be disregarded in determining the amount payable under paragraph (5) in the first instance; then the option is to be taken into account so far as it increases the amount of the pension so payable.

Dependants' pensions: suspension and recovery

E.23

(1) This rule applies where—

(a) on a member’s death a pension has been awarded and paid under this Part, and

(b) subsequently it appears to the Secretary of State that the member or the person to whom the pension has been paid made a false declaration or deliberately suppressed a material fact in connection with the award.

(2) The Secretary of State may—

(a) cease paying the pension, and

(b) recover any payment made under the award.

(3) Paragraph (2) does not affect the Secretary of State’s right to recover a payment or overpayment in any case where he considers it appropriate to do so.

Recovery of lump sum payments made to nominee

E.24

(1) Where—

(a) payment is made to a person under rule E.15 (death of a member: lump sum benefit) because of the person’s nomination by a member, and

(b) the person’s nomination is subsequently found to be invalid under rule E.21(4) or (5),

the Secretary of State may recover the payment.

(2) Paragraph (1) does not affect the Secretary of State’s right to recover a payment or overpayment in any case where he considers it appropriate to do so.

Provisional awards of children’s pensions: later adjustments

E.25

(1) This rule applies where after the death of an active member, a deferred member or a pensioner member—

(a) a pension is paid in respect of one or more persons under this Part on the basis that they were eligible children at the date of the member’s death and that there were then no other eligible children, and

(b) subsequently it appears—

(i) that a person in respect of whom such a pension has been paid was not then an eligible child, or

(ii) that a further person was then an eligible child, or

(iii) that a child who was born after the member’s death is an eligible child.

(2) The Secretary of State may make such adjustments in the amount of the pensions payable in respect of the children in question as are required in view of the facts as they subsequently appear.

(3) Paragraph (2) does not affect the Secretary of State’s right to recover a payment or overpayment in any case where he considers it appropriate to do so.

Payments under this Part

E.26

(1) A pension under this Part is payable from the day after the date of the death of the member.

(2) Payment of a lump sum payable under this Part must be made before the expiry of the period of two years beginning with that date.

(3) A pension payable under this Part in respect of an eligible child aged under 18 must be paid—

(a) if the child is in the care of the member’s surviving spouse or civil partner or a person who is the member’s surviving adult dependant for the purposes of rule E.2, to the surviving spouse or civil partner or the adult dependant, and

(b) in any other case, to the child’s guardian,

unless the Secretary of State directs otherwise.

Dual capacity membership

E.27

(1) This rule applies where the deceased member was—

(a) a member of the Scheme of two or more of the kinds specified in paragraph (2), or

(b) a member of the Scheme and a member of the AFPS 1975.

(2) They are—

(a) an active member,

(b) a deferred member,

(d) a pension credit member.

(3) Where paragraph (1)(a) applies, the general rule is that—

(a) benefits are payable in respect of the member under this Part as if two or more members of the kinds in question had died (so that two or more pensions or lump sums are payable in respect of the one deceased member), and

(b) the amounts payable are determined accordingly.

(4) But that general rule is subject to—

(a) rule E.3(4) and E.4(4) (adult dependants' pension where the member was both an active member and a deferred member),

(b) rule E.14(3) and (4) (children entitled to three or more pensions),

(d) rule E.16(3) and E.18(3) (amount of lump sum where the member was both an active member and a pensioner member).

(5) Where paragraph (1)(b) applies, the general rule is that benefits are payable in respect of the member under this Part regardless of the member’s membership of the AFPS 1975.

(6) But that general rule is subject to rules E.16(4) and (5) and E.17(3) (amount of lump sum where member was both a member of the Scheme and a member of the AFPS 1975).

Guaranteed minimum pensions for surviving spouses

E.28

(1) This rule applies where the surviving spouse of a deceased active, deferred or pensioner member has a guaranteed minimum under section 17 of the Pension Schemes Act 1993 in relation to benefits in respect of the deceased member under the Scheme.

(2) If apart from this rule—

(a) no pension would be payable to the surviving spouse under this Part, or

(b) the weekly rate of the pension payable would be less than the guaranteed minimum,

a pension the weekly rate of which is equal to the guaranteed minimum is payable to the surviving spouse for life.

(3) Paragraph (2) does not apply if the pension is forfeited in a case where rule J.6(1)(a) (conviction of treason or other national security offences) applies.

PART F — TRANSFERS

Transfers Out

Right to transfer value payment

F.1

(1) This Part supplements the rights conferred under Chapter 4 of Part 4 of the Pension Schemes Act 1993 (transfer values).

(2) This Part is without prejudice to that Chapter or Chapter 5 of that Part[^f00035] (early leavers: cash transfer sums and contribution refunds).

(3) Accordingly—

(a) a member to whom Chapter 4 of that Part applies (see section 93(1)(a) of that Act) is entitled to require the payment of a transfer value in respect of the rights to benefit that have accrued to or in respect of him under the Scheme, and

(b) a member to whom Chapter 5 of that Part applies (see section 101AA(1) of that Act) is entitled to a cash transfer sum or a contribution refund in accordance with that Chapter.

(4) Subject to the provisions of this Part, any other former active member, other than a pensioner member, is entitled to require such a payment as if rights under Chapter 4 of Part 4 of the Pension Schemes Act 1993 had accrued to or in respect of him by reference to the reckonable service he is entitled to count under the Scheme (and references in this Part to his accrued rights or benefits are to be read accordingly).

(5) Paragraph (4) does not apply if the former member is entitled under rule C.7 to repayment of the contributions he has paid during the period of service ending with his ceasing to be an active member or acquires a right to a contribution refund under Chapter 5 of Part 4 of the Pension Schemes Act 1993.

(6) Paragraphs (3) and (4) do not apply to rights that are directly attributable to a pension credit.

(7) For the application of paragraph (4) in the case of certain Gurkha Pension Scheme transferees, see rule L.7(4).

Applications for statements of entitlement

F.2

(1) A member who requires a transfer value payment to be made must apply in writing to the Scheme administrator for a statement of the amount of the cash equivalent of the member’s accrued benefits under the Scheme at the guarantee date (“a statement of entitlement”).

(2) In these Rules, “the guarantee date” means any date that—

(a) falls within the required period,

(b) is chosen by the Scheme administrator,

(d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement.

Applications for transfer value payments

F.3

(1) A member who has applied for and received a statement of entitlement under rule F.2 may apply in writing to the Scheme administrator for a transfer value payment to be made.

(2) On making such an application a member becomes entitled to a payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of paragraph (10)).

Ways in which transfer value payments may be applied

F.4

(1) A member may only require the Secretary of State to apply the guaranteed cash equivalent transfer value payment in one or more of the ways permitted under section 95 of the Pension Schemes Act 1993 (whether or not he is entitled to a guaranteed cash equivalent transfer value payment under that Act).

(2) The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (3) applies.

(3) The benefits attributable to—

(a) the member’s accrued rights to a guaranteed minimum pension, or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

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