# The Armed Forces Pension Scheme Order 2005, Paragraph D.2: Retirement before reaching pension age

Extent: E+W+S+N.I.

(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.

---
Source: https://www.legislation.gov.uk/uksi/2005/438/schedule/1/part/D/crossheading/entitlement-to-benefits/paragraph/D.2 (the official version)
Page: https://openlegislation.uk/armed-forces-pension-scheme-order-2005/schedule-1/part-D/crossheading-entitlement-to-benefits/paragraph-D.2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.