Explanatory note

These Regulations are made under the Public Service Pensions Act 2013 (c.25) and establish the Armed Forces Early Departure Payments Scheme 2014 (“the scheme”). This is a new scheme of benefits for members of the armed forces leaving service before they are entitled to retirement pensions or other benefits under the Armed Forces Pension Regulations 2014. The scheme replaces existing arrangements for armed forces personnel without transitional protection and takes effect from 1st April 2015.

Regulation 1 provides that the Regulations come into force on 1st April 2015.

Regulation 2 provides for the establishment of the scheme and states that it is to be known as “the Armed Forces Early Departure Payments Scheme 2014”.

Regulation 3 applies to this scheme the same governance regime as applies to the AFPS 14.

Regulation 4 sets out general definitions.

Regulations 5, 6 and 7 explain the meaning of “final pensionable earnings”, sets out the method by which final pensionable earnings are adjusted and explains the meaning of “qualifying service”.

Regulations 8 to 15 make provisions regarding early departure payments.

Regulations 8 and 9 explain eligibility and entitlement criteria for early departure payments.

Regulation 10 explains how the amount of early departure payments is to be calculated.

Regulation 11 provides an option for a person to convert the lump sum element of an early departure payment into additional monthly payments.

Regulation 12 provides for adjustments to early departure periodical payments to take account of inflation.

Regulation 13 explains the effect of rejoining the regular forces within 5 years of receiving an early departure payment.

Regulation 14 explains the effect of joining the reserve forces for those in receipt of an early departure payment.

Regulation 15 explains what is to happen where a person qualifies for an early departure payment but is unable to take it as a result of an emergency requiring the person’s continued service.

Regulations 16 to 18 make provisions relating to resettlement grants.

Regulation 16 makes provision for an entitlement to a resettlement grant.

Regulation 17 details how the amount of a resettlement grant is determined.

Regulation 18 explains the effect of rejoining the regular or joining the reserve forces on those in receipt of a resettlement grant.

Regulations 19 to 22 deal with lump sums on incapacity for armed forces service.

Regulation 19 specifies conditions for entitlement to a lump sum for incapacity for armed forces service.

Regulation 20 specifies the calculation for determining the amount of lump sum for incapacity for armed forces service.

Regulation 21 details the effect of early departure payment relating to a prior period of service on payment of a lump sum for incapacity for armed forces service.

Regulation 22 sets out the effect of rejoining the armed forces having received a lump sum for incapacity for armed forces service.