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The Armed Forces Pension Scheme Order 2005

S.I. 2005/438 · Made 8 March 2005 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 14 July 2026.

PENSIONS

Made 8th March 2005

Laid before Parliament 14th March 2005

Coming into force 6th April 2005

The Secretary of State for Defence, in exercise of the powers conferred upon him by sections 1(1) and (3), 3 and 10(2), (3) and (4) of the Armed Forces (Pensions and Compensation) Act 2004f1 hereby makes the following Order:

Annotations to the whole text

Footnotes

f1

2004 c. 32.

Contents

  1. Preliminary
  2. 1Citation and commencement and interpretation
  3. 2Establishment of the Armed Forces Pension Scheme 2005
  4. 3Amendments of the Armed Forces Pension Scheme 2005
  5. 4Amendments of other regulations
  6. 5Closure of Scheme and transitional provision
  7. 6Schedule 3: Remediable Service
  8. Signature
  9. Schedule 1: ARRANGEMENT OF RULES
  10. Part A: INTERPRETATION ETC.
  11. A.1Interpretation: general
  12. A.2Meaning of “pensionable earnings”
  13. A.2AMeaning of “service reduction percentage”
  14. A.3Meaning of “assumed pay”
  15. A.4Meaning of “final pensionable earnings”
  16. A.5Inflation adjustments in determining final pensionable earnings
  17. A.6Active membership period
  18. A.7Qualifying service
  19. A.8Reckonable service
  20. A.9Calculation of periods of membership or service etc
  21. A.10Disregard of short breaks in service
  22. Part B: MEMBERSHIP
  23. B.1Eligibility: general
  24. B.2Persons with other pension arrangements
  25. B.3Joining the Scheme on starting service
  26. B.4Joining the Scheme after service begins
  27. B.5Leaving the Scheme
  28. B.6Fixed Protection Members
  29. Part C: CONTRIBUTIONS
  30. Buying Added Years
  31. C.1Member’s option to pay contributions to increase service
  32. C.2Cancellation of options
  33. C.3Effect of making contributions
  34. C.4Absence from work
  35. C.5Restriction on pension debit members making contributions
  36. C.6Purchase of added years for members seconded to NATO or the UN etc
  37. Repayment of Contributions
  38. C.7Repayment of contributions
  39. Part D: RETIREMENT BENEFITS
  40. Entitlement to Benefits
  41. D.1Retirement after reaching pension age
  42. D.2Retirement before reaching pension age
  43. D.3Pension credit members' pensions
  44. D.4Early payment of pensions with actuarial reduction
  45. D.5Early payment of benefits: active members with permanent serious ill-health
  46. D.6Early payment of benefits: active members with significant impairment of capacity for gainful employment
  47. D.7Early payment of benefits: deferred members with permanent serious ill-health
  48. D.8Member’s requests for review of ill-health awards
  49. D.9Secretary of State’s power to review ill-health awards
  50. Options to Change Benefits
  51. D.10Option to exchange lump sum for pension
  52. D.11Option for members in serious ill-health to exchange whole pension for lump sum
  53. Pension Debit Members and Pension Credit Members
  54. D.12Reduction in pension debit member’s benefits
  55. D.13Pension credit member’s rights
  56. Allocation
  57. D.14Election to allocate pension
  58. D.15Procedure for election under rule D.14
  59. D.16Effect of allocation
  60. Contracting-out Obligations (GMPs etc.)
  61. D.17Guaranteed minimum pensions etc
  62. Part E: DEATH BENEFITS
  63. Pensions for Adult Dependants
  64. E.1Surviving spouses' and civil partners' pensions
  65. E.2Other adult dependants' pensions
  66. E.3Amount of pensions under rules E.1 and E.2: active members
  67. E.4Amount of pensions under rules E.1 and E.2: deferred members
  68. E.5Amount of pensions under rules E.1 and E.2: pensioner members
  69. E.6Reduction in pensions under rules E.1 and E.2 in cases of wide age disparity
  70. E.7Adult dependants entitled to two or more pensions under this Part
  71. Pensions for Eligible Children
  72. E.8Surviving children’s pensions
  73. E.9Meaning of “eligible child”
  74. E.10Amount of children’s pension under rule E.8: active members
  75. E.11Amount of children’s pension under rule E.8: deferred members
  76. E.12Amount of children’s pension under rule E.8: pensioner members
  77. E.13Children born after the member’s death
  78. E.14Children entitled to three or more pensions
  79. Lump Sum Death Benefits
  80. E.15Death of a member: lump sum benefit
  81. E.16Amount of lump sum benefit under rule E.15: active members
  82. E.17Amount of lump sum benefit under rule E.15: deferred members
  83. E.18Amount of lump sum benefit under rule E.15: pensioner members
  84. E.19Amount of lump sum benefit under rule E.15: pension credit members
  85. E.20Members affected by court orders to former spouses and civil partners on death
  86. E.21Nominations for lump sum death benefits
  87. General Provisions
  88. E.22Pension debit members
  89. E.23Dependants' pensions: suspension and recovery
  90. E.24Recovery of lump sum payments made to nominee
  91. E.25Provisional awards of children’s pensions: later adjustments
  92. E.26Payments under this Part
  93. E.27Dual capacity membership
  94. E.28Guaranteed minimum pensions for surviving spouses
  95. Part F: TRANSFERS
  96. Transfers Out
  97. F.1Right to transfer value payment
  98. F.2Applications for statements of entitlement
  99. F.3Applications for transfer value payments
  100. F.4Ways in which transfer value payments may be applied
  101. F.5Calculating amounts of transfer value payments
  102. F.6Effect of transfers-out
  103. Transfers In
  104. F.7Right to apply for acceptance of transfer value payment from another scheme
  105. F.8Procedure for applications under rule F.7
  106. F.9Acceptance of transfer value payments
  107. F.10Calculation of transferred-in reckonable service
  108. Miscellaneous Provisions
  109. F.11Public sector transfer arrangements
  110. Part G: RE-EMPLOYMENT
  111. Preliminary
  112. G.1Application of Part G
  113. Treatment of Separate Periods of Service: Options to Aggregate
  114. G.2General rule: periods of service treated separately
  115. G.3Option to aggregate earlier membership: previous members of the Scheme
  116. G.4Option to aggregate earlier membership: previous members of the AFPS 1975
  117. G.5Procedure for exercising options under rules G.3 and G.4
  118. G.6Application of rule G.3 to members who opted to leave Scheme
  119. G.7Re-employment after ill-health awards
  120. Part H: ABATEMENT
  121. H.1Application of Part H
  122. H.2Abatement of pensions on re-employment: general rules
  123. H.3Abatement of pensions: effect of changes after re-employment
  124. H.4Special rule about annual rate of pay in old service in cases of entitlement to two or more pensions
  125. H.5Adjustment of basic pay in old service
  126. H.6General disregard of effect of abatement
  127. Part J: MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
  128. Claims for and Payment of Benefits
  129. J.1Claims for and payment of benefits
  130. J.2False statements etc. about ill-health
  131. J.3Non-assignability
  132. Pension Credit Members with two or more Pension Credits
  133. J.4Pension credit members with two or more entitlements
  134. Forfeiture
  135. J.5Forfeiture of benefits
  136. J.6Events enabling forfeiture
  137. J.7Procedure, references etc
  138. Commutation of Small Pensions
  139. J.8Commutation of small pensions
  140. Determination of Questions
  141. J.9Determination of questions
  142. Information, Evidence, Suspension etc.
  143. J.10Information and evidence
  144. Payment and deduction of tax
  145. J.11Payment on behalf of members of lifetime allowance charge
  146. J.12Reduction of benefits and transfer values where lifetime allowance charge payable
  147. J.13Deduction of special lump sum death benefits charge
  148. Part K: AFPS 1975 TRANSFEREES
  149. Preliminary
  150. K.1Application of Part K: meaning of “AFPS 1975 transferee”
  151. K.2Options for AFPS 1975 members to join the Scheme under Part K
  152. Transfer of Service from the AFPS 1975
  153. K.3Service credited from the AFPS 1975
  154. K.4Treatment of added years: contributions paid before 6th April 2006
  155. K.5Treatment of preserved awards
  156. K.6Transfers in: transitional provision
  157. K.7Pension debit members
  158. K.8Disapplication of rule E.6
  159. Part L: GURKHA PENSION SCHEME TRANSFEREES
  160. L.1Application of Part L: meaning of “Gurkha Pension Scheme transferee”
  161. L.2Option for active members of Gurkha Pension Scheme to join the Scheme
  162. L.3Option for former active members of Gurkha Pension Scheme to join the Scheme
  163. L.4Effect of exercising option under rule L.2 (Gurkha active transferees)
  164. L.5Effect of exercising option under rule L.3 (former active Gurkhas)
  165. L.6Pension debit members
  166. L.7Modifications of Scheme rules in case of Gurkha Pension Scheme transferees
  167. Schedule 2: TEMPORARY MODIFICATIONS OF THE ARMED FORCES PENSION SCHEME 2005
  168. 1Paragraph 1 Repealed
  169. 2Paragraph 2 Repealed
  170. 3Paragraph 3 Repealed
  171. 4Paragraph 4 Repealed
  172. 5Paragraph 5 Repealed
  173. 6Paragraph 6 Repealed
  174. 7Paragraph 7 Repealed
  175. 8Paragraph 8 Repealed
  176. 9Paragraph 9 Repealed
  177. 10Paragraph 10 Repealed
  178. 11Paragraph 11 Repealed
  179. 12Paragraph 12 Repealed
  180. 13Paragraph 13 Repealed
  181. 14Paragraph 14 Repealed
  182. 15Paragraph 15 Repealed
  183. Schedule 2: Transitional Provision
  184. Part 1: Interpretation
  185. 1Interpretation
  186. 2Meaning of “continuity of service”
  187. 3Commencement of active membership of the AFPS 2015 for a transition member
  188. Part 2: Exception to section 18(1) of the 2013 Act: full protection members of the AFPS 2005
  189. 4Meaning of “conditional full protection member of the AFPS 2005”
  190. 5Meaning of “conditional full protection member of an existing scheme”
  191. 6Meaning of “conditional full protection member of a public body pension scheme”
  192. 7Full protection members of the AFPS 2005
  193. 8Members of the AFPS 2005 on 31st March 2015
  194. 9Members of an existing scheme or a public body pension scheme
  195. 10Exception for full protection member during protection period
  196. 11Full protection member not eligible to join the AFPS 2015
  197. Part 3: Payment of ill-health benefits to transition members with continuity of service
  198. 12This Part not to apply to previous periods of service
  199. 13Transition members not to receive early ill-heath benefits except in accordance with this Part
  200. 14Active transition member with permanent serious ill-health who leaves service before reaching age 55
  201. 15Transition member with permanent serious ill-health who reaches age 55
  202. 16Active transition member who leaves service with permanent serious ill-health on or after reaching age 55 but before age 60
  203. 17Active transition member with significant impairment of capacity for gainful employment who leaves service before reaching age 55
  204. 18Transition member with significant impairment of capacity for gainful employment who reaches age 55
  205. 19Active transition member who leaves service with significant incapacity for gainful employment on or after reaching age 55 but before reaching age 60
  206. 20Deferred transition member with permanent serious ill-health who leaves service before reaching age 55
  207. 21Deferred transition member with permanent serious ill-health who reaches age 55
  208. 22Deferred transition member who meets criteria for permanent serious ill-health on or after reaching age 55
  209. 23Review of ill-health awards at request of member or Secretary of State
  210. Part 4: Payment of death benefits in respect of transition members with continuity of service
  211. 24This Part not to apply to previous periods of service
  212. 25Death benefits not to be paid in respect of transition members except in accordance with this Part
  213. 26Surviving adult’s pension when transition member dies in service before reaching age 55
  214. 27Surviving adult dependant’s pension when a transition member dies in service on or after reaching age 55
  215. 28Surviving adult dependant’s pension when a transition member dies as a deferred or pensioner member before reaching age 55
  216. 29Surviving adult dependant’s pension when a transition member dies as a deferred member or a pensioner member on or after reaching age 55
  217. 30Eligible child’s pension when a transition member dies in service before reaching age 55
  218. 31Eligible child’s pension when a transition member dies in service on or after reaching age 55
  219. 32Eligible child’s pension when a transition member dies as a deferred or pensioner member before reaching age 55
  220. 33Eligible child’s pension when a transition member dies as a deferred or pensioner member on or after reaching age 55
  221. 34Death of a transition member whilst in service: lump sum benefit
  222. 35Death of a deferred transition member: lump sum benefit
  223. 36Death of a pensioner transition member before reaching age 55: lump sum benefit
  224. 37Death of a pensioner transition member on or after reaching age 55: lump sum benefit
  225. Part 5: Transitional provisions relating to the AFPS 2005
  226. 38No benefits for service on or after member’s transition date
  227. 39Pensionable service under the AFPS 2005 for a transition member with continuity of service
  228. 40Final salary link for a transition member with continuity of service
  229. 41Secretary of State does not consider that the member has suffered a permanent breakdown of health involving incapacity for any full-time employment Repealed
  230. 42Deferred membership of the AFPS 2005
  231. 43Qualifying for retirement benefits under the AFPS 2005
  232. 44Final salary link not to apply again to a pension in payment
  233. Part 6: Miscellaneous transitional provisions
  234. 45Nomination under the AFPS 2005 continues to have effect
  235. 46Option to buy added years under the AFPS 2005 continues to have effect
  236. 47Opting out of AFPS 2015 - contributions under the AFPS 2005 cease to be payable
  237. 47APurchase of added years for members seconded to NATO or the UN etc
  238. Part 7: Transfer of final salary benefits
  239. 48Acceptance of club transfer value payments and club transfers
  240. 49Member of the AFPS 2015 or the AFPS 2005
  241. Schedule 3: Remediable Service
  242. Part 1: Introductory Provisions
  243. 1Interpretation
  244. 2Interpretation
  245. 3Interpretation
  246. 4Interpretation
  247. Part 2: Remediable Service Statements
  248. 5Requirements relating to remediable service statements
  249. Part 3: Decisions about the treatment of remediable service
  250. Chapter 1: Opted-out Service
  251. 6Application and interpretation of Chapter 1
  252. 7Election in relation to relevant opted-out service
  253. Chapter 2: Immediate choice decision for reformed scheme or legacy scheme benefits
  254. 8Application of Chapter 2
  255. 9Immediate choice decision for reformed scheme or legacy scheme benefits: general
  256. 10Immediate choice decision: additional requirements
  257. 11Immediate choice decision: deemed election
  258. Chapter 3: Deferred choice decision for reformed scheme or legacy scheme benefits
  259. 12Application of Chapter 3
  260. 13Deferred choice decision for reformed scheme or legacy scheme benefits: general
  261. 14Deferred choice decision to be made by M
  262. 15Deferred choice decision to be made by a person other than M
  263. 16Deferred choice election: deemed section 10 election
  264. 17Deferred choice decision: additional requirements
  265. Part 4: Provision about AFPS 1975 Re-joiners
  266. 18Application and Interpretation of this Part
  267. 19Effect of a section 6 election
  268. Part 5: Provision about divorce and dissolution arrangements
  269. Chapter 1: Pension Credit and Debit Members
  270. Application and Interpretation of Chapter 1
  271. 20Application and interpretation of Chapter 1
  272. Pension sharing orders: information provided before 1st October 2023
  273. 21Application and interpretation of Section 2
  274. 22Information before 1st October 2023: unprotected member, AFPS 2005 only
  275. 23Information and transfer day before 1st October 2023: protected members
  276. 24Information and transfer day before 1st October 2023: unprotected members
  277. 25Information before 1st October 2023: transfer day after 1st October
  278. 26Information provided before 1st October 2023: applying a remediable credit adjustment
  279. 27Information provided before 1st October 2023: immediate choice – pension debit information
  280. 28Information provided before 1st October 2023: immediate choice – pension debit adjustment
  281. 29Information provided before 1st October 2023: deferred choice – pension debit
  282. 30Information provided before 1st October 2023: deferred choice member – pension debit adjustment
  283. Information provided on or after 1st October 2023
  284. 31Application and interpretation of Section 3
  285. 32Information provided on or after 1st October 2023: pension information
  286. 33Information provided on or after 1st October 2023: calculation of pension credits
  287. 34Information provided on or after 1st October 2023: pension debit
  288. 35Information provided on or after 1st October 2023: pension debit adjustment
  289. Chapter 2: Arrangements on divorce, annulment or dissolution other than a pension sharing order
  290. 36Arrangements other than a pension sharing order: calculating the value of pension benefits
  291. Part 6: Voluntary Contributions
  292. Chapter 1: General
  293. 37Application of this Part
  294. Chapter 2: Remedial arrangements to pay voluntary contributions to the legacy scheme
  295. 38Remedial arrangements: additional reckonable service
  296. 39Remedial arrangements: general
  297. Chapter 3: Secondment/Loan
  298. 40Purchase of additional reckonable service in respect of period on loan
  299. Part 7: Transfers
  300. Chapter 1: General
  301. 41Interpretation of Part 7
  302. 42Transferred out remediable service statements
  303. Chapter 2: Transfers on a cash equivalent basis
  304. Transfers before 1st October 2023
  305. 43Transfers out before 1st October 2023
  306. 44Transfers in before 1st April 2022
  307. Transfers on or after 1st October 2023
  308. 45Application of Section 5
  309. 46Transfers out on or after 1st October 2023
  310. Chapter 3: Transfers on a club basis
  311. Club transfers before 1st October 2023
  312. 47Club transfers out before 1st October 2023
  313. 48Club transfers in before 1st October 2023
  314. Club transfers on or after 1st October 2023
  315. 49Application of Section 7
  316. 50Club transfers out on or after 1st October 2023
  317. 51Club transfers in on or after 1st October 2023
  318. Chapter 4: Transfers to and from the AFPS 2015
  319. 52Transfers out before 1st October 2023: AFPS 2015
  320. 53Transfers in before 1st October 2023: AFPS 2015
  321. 54Club Transfers in before 1st October 2023: AFPS 2015
  322. Chapter 5: Treatment of transferred in remediable rights
  323. 55Treatment of rights secured by virtue of transferred in remediable rights
  324. 56Benefits already paid in relation to transferred in remediable rights
  325. 57Pension benefits and lump sum benefits in relation to a remediable value
  326. Part 8: Provision about special cases
  327. Chapter 1: Child pensions in payment
  328. 58Protection of the amount of pension payable to an eligible child
  329. Chapter 2: Application of Schedule 2 (Transitional Provision for the AFPS 2005)
  330. 59Calculation of Benefits for remediable service: election for new Scheme benefits
  331. Chapter 3: Abatement
  332. 60Abatement
  333. Chapter 4: Death Benefits Nomination
  334. 61Nomination for Death Lump Sum Benefits
  335. Chapter 5: Medical and Dental Officers: AFPS 2005 Bonus Scheme
  336. 62MODO Bonus Scheme: effect of election for new Scheme benefits
  337. Chapter 6: Scheme Pays
  338. 63Payment of annual allowance tax charge and provision of information
  339. Part 9: Liabilities and payment
  340. Chapter 1: Application of Part 9
  341. 64Application of Chapters 1, 2 and 3
  342. Chapter 2: Interest, compensation and netting off
  343. 65Interest
  344. 66Indirect compensation
  345. 67Applications for compensation or indirect compensation
  346. 68Netting off
  347. Chapter 3: Reduction and waiver of liabilities
  348. 69Power to reduce or waive amounts owed by a person to the Scheme manager
  349. Chapter 4: Payment of net liabilities
  350. 70Application of Chapter 4
  351. 71Payment of amounts owed to the Scheme manager
  352. 72Payment of amounts owed to a person
  353. Part 10: Eligible decision-makers for deceased members
  354. 73Application and Interpretation of this Part
  355. 74Sole beneficiary: an adult
  356. 75Sole beneficiary: a child
  357. 76Sole beneficiary: M’s estate
  358. 77Sole beneficiary: a body
  359. 78Multiple beneficiaries: including a surviving adult
  360. 79Multiple beneficiaries: including adult eligible children
  361. 80Multiple beneficiaries: nominated individuals only
  362. 81Multiple beneficiaries: non-adult eligible children
  363. 82Multiple beneficiaries: nominated children only
  364. 83Multiple beneficiaries: one or more adults and one or more children
  365. 84Other cases
  366. Explanatory note