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Paragraph 17 Active transition member with significant impairment of capacity for gainful employment who leaves service before reaching age 55F1

(1)

This paragraph applies in relation to a transition member with continuity of service (T) who—

(a)

meets the criteria for an ill-health pension (active members with significant impairment of capacity for gainful employment) under regulation 52 of the AFP Regulations 2014; and

(b)

has not reached age 55.

(2)

If this paragraph applies—

(a)

early benefits on significant incapacity for gainful employment are not payable under the AFPS 2005; and

(b)

ill-health benefits (active members with significant impairment of capacity for gainful employment) are payable under the AFPS 2015 in accordance with this paragraph.

(3)

The ill-health benefits payable under paragraph (2)(b) comprise benefits payable in respect of service before T’s transition date and benefits payable in respect of service from T’s transition date.

(4)

The benefits payable in respect of service before T’s transition date are calculated in accordance with rule D.6 (early payment of benefits: active members with significant incapacity for gainful employment) of the AFPS 2005 but when calculating the rate of annual pension, the following is substituted for rule D.6(3)—

“(3)
(a)

For the purposes of paragraph (2), N is equal to the sum of—

(i)

the member’s years of reckonable service in the AFPS 2005; and

(ii)

X multiplied by Y; and

(b)

In this paragraph, X is equal to the member’s years of reckonable service in the AFPS 2005 divided by the total of the member’s years of reckonable service in the AFPS 2005 and pensionable service in the AFPS 2015.

(c)

In this paragraph, Y is one third of the further reckonable service which the member would have been able to count under the AFPS 2005 if the member had remained an accruing member of that scheme from the date of the ill-health retirement until age 55.

(F2d)

For the purposes of calculating the member’s pensionable service in the AFPS 2015 under this rule, any period of pensionable service which is also a period when the member has served on flexible terms is reduced by the service reduction percentage applicable to that period of service. ”.

(5)

The benefits payable in respect of service from T’s transition date are calculated in accordance with the AFP Regulations 2014 but when calculating the rate of annual pension the following is substituted for regulation 55(2)(b)—

“(b)

B is the sum of—

(i)

the member’s pensionable service under the AFPS 2015 as calculated according to regulation 55(2)(a)(i) and (ii); and

(ii)

X multiplied by N.

(c)

In this paragraph, X is equal to the member’s years of pensionable service in the AFPS 2015 divided by the total of the member’s years of reckonable service in the AFPS 2005 and pensionable service in the AFPS 2015.

(d)

In this paragraph, N is one third of the further pensionable service which the member would have been able to count under the AFPS 2015 if the member had remained an accruing member of that scheme from the date of the ill-health retirement until age 60.

(F3e)

For the purposes of calculating the member’s pensionable service in the AFPS 2015 under sub-paragraphs (b)(i) and (c), any period of pensionable service which is also a period when the member has served on flexible terms is reduced by the service reduction percentage applicable to that period of service. ”.

Annotations

Textual amendments

F1

Sch. 2 inserted (1.4.2015) by The Armed Forces (Transitional Provisions) Pensions Regulations 2015 (S.I. 2015/568), reg. 1(2), Sch. 2

F2

Words in Sch. 2 para. 17(4) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), reg. 1(3), 3(4)(a)

F3

Words in Sch. 2 para. 17(5) inserted (1.4.2019) by The Armed Forces Pension Schemes and Early Departure Payments Schemes (Amendments Relating to Flexible Working and Miscellaneous Amendments) Regulations 2018 (S.I. 2018/1111), reg. 1(3), 3(4)(b)

Notes on Schedule 2

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