Article 16 Lump sum awards: incapacity for armed forces service

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

art. 16(1)(d)(iii) word omitted by Armed Forces (Transitional Provisions) Pensions 2015 reg. 22(a)
art. 16(1)(d)(v)-(viii) inserted by Armed Forces (Transitional Provisions) Pensions 2015 reg. 22(b)
art. 16(3) words inserted by Armed Forces (Transitional Provisions) Pensions 2015 reg. 22(c)
art. 16(4) words inserted by Armed Forces (Transitional Provisions) Pensions 2015 reg. 22(d)
art. 16(4A) inserted by Armed Forces (Transitional Provisions) Pensions 2015 reg. 22(e)
art. 16(6) inserted by Armed Forces (Transitional Provisions) Pensions 2015 reg. 22(f)
art. 16(1)(a)(aa) substituted for art. 16(1)(a) by Armed Forces Pension Scheme etc. 2006 art. 13

(1)

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

(a)

in the opinion of the Secretary of State, after consultation with the Scheme medical adviser, the person is unfit for service as such a member,

(b)

the person has at least two years' relevant service,

(c)

immediately before the service ceases the person is an active member of the AFPS 2005, and

(d)

the person is not entitled to payments under article 9 of the Scheme or the immediate payment of a pension or lump sum under—

(i)

rule D.1 of the AFPS 2005 (retirement after reaching pension age),

(ii)

rule D.5 of that Scheme (early payment of benefits: active members with permanent serious ill-health),

(iii)

rule D.6 of that Scheme (early payment of benefits: active members with significant impairment of capacity for gainful employment), or

(iv)

rule D.11 of that Scheme (option for members in serious ill-health to exchange whole pension for lump sum).

(2)

The amount of the lump sum payable under this article is calculated by multiplying one eighth of the person’s final relevant earnings by his calculation service (expressed in years and fractions of a year), except where paragraph (3) or (4) applies.

(3)

If the amount calculated under paragraph (2) would be less than one-half of the person’s final relevant earnings, that amount is payable instead.

(4)

If the amount calculated under paragraph (2) would be more than twice the person’s final relevant earnings, that amount is payable instead.

(5)

This article is subject to rule D.8 of the AFPS 2005 (under which a person may ask for a review of his entitlement under rule D.6 of that Scheme and in some circumstances some of the amount paid under this article must be repaid).