Consultation outcome

The Armed Forces Pensions (Amendments) Regulations 2022

Updated 14 March 2022

PUBLIC SERVICE PENSIONS

The Armed Forces Pensions (Amendments) Regulations 2022

Laid before Parliament: 9 March 2022.

Coming into force in accordance with regulation 1.

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 1(1) and 2(h), 2(1) and 3(1), (2)(b) and (c) and (3)(b) of the Public Service Pensions Act 2013(a) (“the 2013 Act”).

In accordance with section 3(5) of the 2013 Act, the Treasury consents to the making of these Regulations.

In accordance with section 21(1) of the 2013 Act, the Secretary of State has consulted the representatives of such persons as appear to the Secretary of State to be likely to be affected by these Regulations.

Citation and Commencement

(1) These Regulations may be cited as The Armed Forces Pensions (Transitional Provisions) Regulations 2022.

(2) This regulation and regulations 4(4)(b) and 5(4)(c) come into force on 31 March 2022.

(3) All other regulations come into force on 1 April 2022.

Interpretation

In these Regulations

“AFPS 1975” means the occupational pension scheme set out in Schedules 1 and 3 to the: Naval and Marine Pensions (Armed Forces 1975 and Attributable Benefits Scheme) Order 2010 (“the Naval Pensions Order”)(b), the Army Pensions (Armed Forces 1975 and Attributable Benefits Scheme) Warrant 2010 (“the Army Pensions Warrant”)(c) and the Air Force Pensions (Armed Forces 1975 and Attributable Benefits Scheme) Order 2010 (“the Air Force Pensions Order”)(d);

“AFPS 2005” means the scheme established by the Armed Forces Pension Scheme Order 2005(e);

“AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014(a);

“FTRS 1997” means the scheme established by the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010(b);

“NRPS 2011” means the scheme constituted by the Reserve Forces Non Regular Permanent Staff (Pension and Attributable Benefits Schemes) Regulations 2011(c);

“RFPS 2005” means the scheme constituted by the Reserve Forces Pension Scheme Regulations 2005(d).

Notes

(a) 2013 c. 25. Section 3(2)(c) was inserted by section [79(3)] of the Public Service Pensions and Judicial Offices Act [2022].
(b) Order in Council made on 10th February 2010.
(c) Royal Warrant made on 16th February 2010.
(d) Queen’s Order made on 17th February 2010.
(e) S.I. 2005/438. Relevant amending instruments are S.I. 2015/568 and [tbc].

Amendment of AFPS 75

(1) AFPS 1975 is amended as follows.

(2) The amendment to modified rule C.3 in paragraph (4)(d)(ii) has effect from 1st April 2015.

(3) In Schedule 1 of the Naval Pensions Order(e), the Army Pensions Warrant(f) and the Air Force Pensions Order(g), in rule A.11 (reckonable service), after paragraph (5) insert—

(6) A member may not accrue reckonable service under these rules as an active member after 31st March 2022..

(4) In Schedule 3 (Transitional Provision)(h):
      (a) in sub-paragraph (2) of paragraph 2 (meaning of continuity of service), for “1st April 2015” substitute “T’s transition date”;
      (b) for sub-paragraph (3) of paragraph 4 (full protection members of the AFPS 1975) substitute:

“(3) P ceases to be a full protection member of the AFPS 1975 on whichever of the following days occurs first:
      (a) the day on which P ceases to be in pensionable service under that scheme; or
      (b) 31st March 2022.”;

(c) omit paragraph 44 (Secretary of State does not consider that the member has suffered a permanent breakdown of health involving incapacity for any full-time employment);

(d) [in paragraph 48 (purchase of additional reckonable service in respect of period of loan):

      (i) for “1st April 2015” substitute “their transition date” wherever it occurs; and
      (ii) in the modified rule C.3 (purchase of additional reckonable service), after paragraph (5), insert:

(6) An option under this rule can only be exercised where the transition member also exercises an option under regulation 97 of the AFPS 15 in respect of the period of the loan after their transition date.

(e) in sub-paragraph (2) of paragraph 49 (option to buy additional reckonable service under the AFPS 1975 continues to have effect) for “31st March 2015” substitute “their transition date”.

Notes

(a) S.I. 2014/2336. There are no relevant amendments.
(b) [Defence Council Regulations cf SI 2015/568]
(c) [Defence Council Regulations cf SI 2015/568]
(d) [Defence Council Regulations cf SI 2015/568]
(e) [tbc – cf footnote to reg 4 SI 2015/568]
(f) [tbc – cf footnote to reg 4 SI 2015/568]
(g) [tbc – cf footnote to reg 4 SI 2015/568]
(h) Schedule 3 was inserted by S.I. 2015/568.

Amendment of AFPS 05

(1) AFPS 2005 is amended as follows.

(2) The amendments in paragraph (4)(b) and (e) have effect from 1 April 2015.

(3) In Schedule 1 (the Armed Forces Pension Scheme 2005), in rule A8 (reckonable service) insert after paragraph (2):

(4) A member may not accrue reckonable service under these rules as an active member after 31st March 2022.

(4) In Schedule 2 (Transitional Provision)(a):

(a) for sub-paragraph (2) of paragraph 7 (full protection members of the AFPS 2005) substitute:

“(2) P ceases to be a full protection member of the AFPS 2005 on whichever of the following days occurs first:
      (a) the day on which P ceases to be in pensionable service under that scheme unless sub-paragraph (3) or (4) applies; or
      (b) 31st March 2022.”;

(b) in paragraph 9 (members of an existing scheme or a public body pension scheme), after sub-paragraph (2) insert:

(3) Where P would have been a full protection member of an armed forces or reserve forces pension scheme if those scheme rules had permitted P to re-enter pensionable service under that scheme on the date P begins service which is pensionable under the AFPS 2005, then P meets the condition in sub-paragraph (1)(d)(i).

(c) omit paragraph 41 (Secretary of State does not consider that the member has suffered a permanent breakdown of health involving incapacity for any full-time employment);

(d) in paragraph 46 (option to buy added years under the AFPS 2005 continues to have effect), for “31st March 2015” substitute “their transition date” wherever it occurs; and

(e) [after paragraph 47, insert:

Purchase of additional reckonable service in respect of period of loan

47A.—(1) This paragraph applies to a transition member with continuity of service if on their transition date they are in qualifying service in accordance with rule A.7(1)(b) (qualifying service) of the AFPS 2005.

(2) For rule C.6 (purchase of added years for members seconded to NATO or the UN etc), substitute:

“C6. (1) This rule applies if an active member is seconded during any period before their transition date:
      (a) to the United Nations or the North Atlantic Treaty Organisation, or
      (b) under arrangements with any other organisation or person under which persons who are in service as a result of which they are eligible to belong to the Scheme are seconded into other service.

(2) If at the end of that period the member resumes service in the armed forces in which he is an active member of the Scheme, he may opt to make a single lump sum contribution to the Scheme to increase his reckonable service by an additional period equal to the length of his secondment before his transition date.

(3) The option may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

(4) If a member exercises the option under paragraph (2) and pays a contribution equal to the aggregate amount of:

      (a) any contributions returned to him by the pension arrangement to which he belonged in respect of his service during the secondment, and
      (b) any lump sum paid to him on leaving the organisation or to the person to whom he was seconded as a severance payment,

the member is entitled to count the period of his secondment before his transition date as reckonable service.

(5) If the aggregate amount mentioned in paragraph (4) is less than the amount determined by the Scheme actuary to be the amount required to be paid in order to increase the member’s reckonable service by the period of his secondment before his transition date, the Secretary of State must make a contribution to the Scheme equal to the difference.

(6) An option under this rule can only be exercised where the transition member also exercises an option under regulation 97 of the AFPS 15 in respect of the period of their secondment after their transition date.”.

Notes

(a) The former Schedule 2 to the AFPS 2005 was revoked by S.I. 2006/717. The current Schedule 2 was inserted by S.I. 2015/568.

Amendment of RFPS 2005

(1) RFPS 2005 is amended as follows.

(2) The amendments in paragraph 4(c) and (e)(ii) have effect from 1 April 2015.

(3) In Schedule 1 (the Reserve Forces Pension Scheme 2005), in rule C.4 (reckonable service) insert after paragraph (3):

(4) A member may not accrue reckonable service under these rules as an active member after 31st March 2022.

(4) In Schedule 2 (Transitional Provision)(a):
      (a) in sub-paragraph (2) of paragraph 2 (meaning of continuity of service), for “1st April 2015” substitute “T’s transition date”;
      (b) for sub-paragraph (2) of paragraph 7 (full protection members of the RFPS 2005) substitute:

“(2) P ceases to be a full protection member of the RFPS 2005 on whichever of the following days occurs first:
      (a) the day on which P ceases to be in pensionable service under that scheme unless sub-paragraph (3) or (4) applies; or       (b) 31st March 2022.”;

(c) in paragraph 9 (members of an existing scheme or a public body pension scheme), after sub-paragraph (2) insert:

(3) Where P would have been a full protection member of an armed forces or reserve forces pension scheme if those scheme rules had permitted P to re-enter pensionable service under that scheme on the date P begins service which is pensionable under the RFPS 2005, then P meets the condition in sub-paragraph (1)(d)(i).

(d) omit paragraph 38 (Secretary of State does not consider that the member has suffered a permanent breakdown of health involving incapacity for any full-time employment); and

(e) [in paragraph 43 (secondment to NATO or the UN etc):

      (i) for “1st April 2015” substitute “their transition date” wherever it appears;
      (ii) in rule C.9 (secondment to NATO or the UN etc), after paragraph (5) insert:

(6) An option under this rule can only be exercised where the transition member also exercises an option under regulation 97 of the AFPS 15 in respect of the period of their secondment.

Notes

(a) Schedule 2 was inserted by S.I. 2015/568.

Amendment of FTRS 97

(1) FTRS 1997 is amended as follows.

(2) In Schedule 1 (the Full Time Reserve Service Pension Scheme 1997), in rule A.11 (reckonable service) insert after paragraph (2):

(3) A member may not accrue reckonable service under these rules as an active member after 31st March 2022.

(3) In Schedule 2 (Transitional Provision)(a):

(a) for sub-paragraph (3) of paragraph 4 (full protection members of the FTRS 1997) substitute:
“(2) P ceases to be a full protection member of the FTRS 1997 on whichever of the following days occurs first:
      (a) the day on which P ceases to be in pensionable service under that scheme; or
      (b) 31st March 2022.”; and

(4) omit paragraph 58 (Secretary of State does not consider that the member has suffered a permanent breakdown of health involving incapacity for any full-time employment).

Notes

(a) Schedule 2 was inserted by S.I. 2015/568.

Amendment of NRPS 11

(1) NRPS 2011 is amended as follows.

(2) In Schedule 1 (the Non Regular Permanent Staff Pension Scheme), in rule A.2 (reckonable service) insert after paragraph (3”

(4) A member may not accrue reckonable service under these rules as an active member after 31st March 2022.

(3) In Schedule 3 (Transitional Provision)(b):

(a) for sub-paragraph (3) of paragraph 4 (full protection members of the NRPS 2011) substitute:

“(2) P ceases to be a full protection member of the NRPS 2011 on whichever of the following days occurs first:
      (a) the day on which P ceases to be in pensionable service under that scheme; or
      (b) 31st March 2022.”; and

(4) omit paragraph 32 (Defence Council does not consider that the member’s service should be terminated on medical grounds).

Notes

(b) Schedule 2 was inserted by S.I. 2015/568.

Amendment of AFPS 15

(1) AFPS 2015 is amended as follows.

(2) The amendment in paragraph 4 has effect from 1 April 2015.

(3) In regulation 3 (interpretation):

      (a) in the definition of “transition member” for “1st April 2015” substitute “their transition date”; and
      (b) in the appropriate place, insert—

transition date” in relation to a transition member means 1st April 2015 or, if later, the day a person ceased to be a full protection member of a connected scheme.

(4) In paragraph (3) of regulation 16, after “exercised” insert “or the member is a transition member who has exercised an option to the contrary in a connected scheme in relation to that employment”.

(5) In regulation 22, for “31st March 2015” substitute “their transition date” wherever it appears”.

Explanatory note

This note is not part of the Order

These Regulations make consequential provision for members of the armed forces pension schemes arising out of provisions in the Public Service Pensions and Judicial Offices [Act 2022] (the 2022 Act) which close all pre-2015 legacy scheme to future accrual after 31 March 2022. These regulations also make retrospective amendments to transitional provisions previously made under the Public Service Pension Act 2013 (the 2013 Act) in 2015.

Regulation 3 amends the AFPS 75 pension scheme, ensuring that the scheme rules reflect the provisions in the 2022 Act, and making consequential changes to definitions and rules. It inserts a requirement in relation to the purchase of additional reckonable service with retrospective.

Regulation 4 amends the AFPS 2005 pension scheme, ensuring that the scheme rules reflect the provisions in the 2022 Act, and making consequential changes to definitions and rules. It also amends transitional provisions relating to full protection with retrospective effect, and inserts a provision relating to the purchase of additional reckonable service for a period of secondment/loan with retrospective effect.

Regulation 5 amends the RFPS 2005 pension scheme, ensuring that the scheme rules reflect the provisions in the 2022 Act, and making consequential changes to definitions and rules. It also amends transitional provisions relating to full protection with retrospective effect.

Regulation 6 amends the FTRS 97 pension scheme, ensuring that the scheme rules reflect the provisions in the 2022 Act, and making consequential changes to definitions and rules.

Regulation 7 amends the NRPS 11 pension scheme, ensuring that the scheme rules reflect the provisions in the 2022 Act, and making consequential changes to definitions and rules.

Regulation 8 amends the AFPS 2015 pension scheme, ensuring that the scheme rules reflect the provisions in the 2022 Act, and making consequential changes to definitions and rules. It includes a provision to ensure that a member who has opted out of a connected legacy scheme is also opted out of the AFPS 2015 on transition: this provision has retrospective effect.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.