Paragraph D.7 Early payment of benefits: deferred members with permanent serious ill-health
United Kingdom
A former active member is entitled to immediate payment of a pension and a lump sum before reaching pension benefit age if—
in the opinion of the Secretary of State the member has suffered a permanent breakdown in health involving incapacity for any full-time employment F2(see rule D.5(3) and paragraph (4) below),
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
the member either—
has at least two years' qualifying service, or
F3is 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
the member makes a claim for immediate payment of the pension and lump sum under this rule to the Scheme administrator.
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.
The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.
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.
Annotations
Textual amendments
- F1
Sch. 1 rules D.7(1)(a)(aa) substituted for Sch. 1 rule D.7(1)(a) (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 4(3)
- F2
Words in Sch. 1 rule D.7(1)(a) substituted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(4)(a)
- F3
Words in Sch. 1 rule D.7(1)(b)(ii) substituted (6.4.2006) by The Armed Forces Pension Scheme etc. (Amendment) Order 2006 (S.I. 2006/717), arts. 1(2), 11(1)
- F4
Sch. 1 rule D.7(4) inserted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(4)(b)
Notes on Schedule 1
Modifications
- C1
Schs. 1-3 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2), 10