Explanatory note

This Order amends the Armed Forces Early Departure Payments Scheme Order 2005 (S.I. 2005/437) (“the principal Order”) which establishes the Armed Forces Early Departure Payments Scheme (“the EDP Scheme”) for the purpose of making payments to members of the Armed Forces Pension Scheme 2005 (“the AFPS 2005”) who leave armed forces service before they are entitled to retirement pensions or other benefits from the AFPS 2005.

Article 4 of the principal Order is amended so that where a member of the armed forces was an active member of the Armed Forces Pension Scheme 1975 (“the AFPS 1975”) who did not opt to become a member of the AFPS 2005 on the basis set out in Part K of AFPS 2005, but rather became a member of the AFPS 2005 after having left and rejoined service, the last period of that person’s service while a member of the AFPS 1975 can be aggregated towards relevant service for the purposes of eligibility for benefits under the EDP Scheme. However, the period will only count as relevant service under the EDP Scheme where the person opts to aggregate the period for pension purposes under Part G of the AFPS 2005 (which allows the aggregation of only the last period of service where there is more than one period of previous service). In addition, the period will only count as relevant service under the EDP Scheme where the person has not already received any pension payments or certain other benefits under the AFPS 1975 in respect of that period.

Article 14(1) of the principal Order is amended to make clear that only active and pensioner members of the AFPS 1975 are excluded by sub-paragraph (d) from entitlement to resettlement grant payments.

A full regulatory impact assessment has not been produced on this instrument as it has no impact on the costs of business, charities or the voluntary sector.