United Kingdom Statutory Instruments

This is subject to rule C.5 (restriction on pension debit members making contributions).

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

    (3) A member may exercise the option under paragraph (1) more than once.

    (4) If a member exercises the option under paragraph (1), the contributions are payable by deduction from his earnings - 

(a) for so much of the member's next relevant pay period as begins with the member's birthday, and

(b) for all subsequent pay periods beginning during the contractual option period.

This is subject to rules C.2 (cancellation of options) and C.4(1) (absence from work).

    (5) If a member exercises the option under paragraph (1) - 

(a) the contributions payable are expressed as a percentage of his pensionable earnings for the time being, and

(b) the additional period of reckonable service that may be counted as a result of opting to pay contributions at that rate is such period as is indicated in tables issued by the Secretary of State, after consultation with the Scheme actuary, for a person of the member's age at the date on which he makes his first payment.

    (6) A member may not make periodical contributions of less than 0.01%, or more than 15%, of his pensionable earnings for the time being.

    (7) In this rule - 

"the contractual option period", in relation to an option under paragraph (1), means the period whilst the member remains an active member or such shorter period as may be specified in the option; and

"the member's next relevant pay period" means the pay period in which the member's next birthday after the Scheme administrator receives the member's application to exercise the option under paragraph (1) falls.

     C.2 Cancellation of options

    (1) A member who has exercised an option under rule C.1(1) may cancel it by giving the Scheme administrator notice in writing.

    (2) If a member cancels such an option, the periodical contributions cease to be payable in respect of his pensionable earnings for the first pay period the Scheme administrator considers appropriate that begins on or after the date on which the Scheme administrator receives the notice.

     C.3 Effect of making contributions

    (1) If a member who has exercised an option under rule C.1(1) pays all the contributions required under the option, his reckonable service is increased by the whole of the additional period covered by the option ("the contractual added years").

    (2) If - 

(a) a member pays some but not all of those contributions,

(b) because of rule C.1(6) the rate at which a member pays contributions under the option is reduced below the rate at which they would otherwise be payable,

(c) during any part of the period while he is paying contributions the member is on unpaid leave for a period which does not count as reckonable service, or

(d) more than one of sub-paragraphs (a) to (c) apply,

his reckonable service is increased as follows.

    (3) For each contribution paid at the rate originally required under the contract the increase is - 

CAY is the contractual added years, and

N is the total number of contributions the member was originally required to pay.

This is subject to paragraph (5).

    (4) For each contribution paid at a reduced rate the increase is - 

CAY is the contractual added years,

N is the total number of contributions the member was originally required to pay,

RR is the reduced rate, and

CR is the rate at which the contribution would be payable under the contract apart from the reduction.

This is subject to paragraph (5).

    (5) Where, during any pay period ("PP") that is part of the period taken into account for the calculation under paragraph (3) or (4), the member is on unpaid leave for a period which does not count as reckonable service ("NRS"), then for that pay period the period of increase is the period of increase as calculated under that paragraph, multiplied by - 

PP and NRS are the number of days in the periods in question.

     C.4 Absence from work

    (1) If a member who has exercised an option under rule C.1(1) has a period of absence from work, the member may - 

(a) cease to pay the contributions payable under the option, or

(b) pay the same amounts of contributions as would be payable if he were receiving pensionable earnings at the full rate.

This is subject to paragraphs (2) and (3).

    (2) Paragraph (1)(b) does not apply during - 

(a) he has at least two years' qualifying service, or

(b) he was formerly entitled to rights under a personal pension scheme or a retirement annuity contract in respect of which a transfer value payment has 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.

    (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.

     D.3 Pension credit members' pensions

    (1) The general rule is that a pension credit member is entitled to a pension for life and a lump sum derived from the member's pension credit rights.

    (2) But no lump sum is payable if the pension debit member is a pensioner member when the pension sharing order under which the member is entitled to the pension credit takes effect.

    (3) The pension and any lump sum become payable - 

(a) immediately on the pension credit member attaining pension benefit age, or

(b) if it is later, when the pension sharing order under which the member is entitled to the pension credit takes effect.

    (4) If no lump sum is payable under this rule, the pension must be of such an amount that its value is equal to the member's pension credit, as calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to the Welfare Reform and Pensions Act 1999.

    (5) If a lump sum is payable under this rule - 

(a) the lump sum so payable must be equal to three times the amount of the annual pension so payable, and

(b) the pension so payable must be of such an amount that its value, when aggregated with the lump sum so payable, is equal to the member's pension credit, as calculated in accordance with those regulations.

     D.4 Early payment of pensions with actuarial reduction

    (1) A member who is not entitled to immediate payment of a pension under D.1, D.2 or D.3 apart from this rule may opt for immediate payment of a reduced pension and lump sum under rule D.2 or D.3 if the member has reached the relevant age and paragraph (2) or (3) applies.

In this paragraph "the relevant age" means - 

(a) in the case of a pension credit member, 60, and

(b) otherwise, 55.

    (2) This paragraph applies if the member - 

(a) meets the condition in rule D.2(1)(a) or (b), and

(b) has ceased to be in service that qualifies him to belong to the Scheme.

    (3) This paragraph applies if - 

(a) the pension is derived from pension credit rights, and

(b) the pension sharing order from which the rights derive has taken effect.

    (4) If a member exercises the option under this rule, the amount of the annual pension to which he becomes entitled is first calculated as mentioned in rule D.2(3) or, as the case may be, rule D.3(4) and then that amount is reduced by such amount as the Secretary of State determines after consulting the Scheme actuary.

This is subject to paragraph (5).

    (5) If the member has a guaranteed minimum under section 14 of the Pension Schemes Act 1993 in relation to service by reference to which he is entitled to benefits under the Scheme, the weekly rate of the pension immediately payable in respect of that service (after taking into account any option exercised under rule D.10) must not be less than that guaranteed minimum, multiplied by such factor as is indicated in tables provided by the Scheme actuary for a person of the member's age and sex at the date on which the pension becomes payable.

    (6) If a member exercises the option under this rule, the amount of the lump sum to which he becomes entitled is first calculated as mentioned in rule D.2(4) or, as the case may be, rule D.3(5) and then that amount is reduced by such amount as the Secretary of State determines after consulting the Scheme actuary.

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

     D.5 Early payment of benefits: active members with permanent serious ill-health

    (1) An active member who ceases to be in service by virtue of which he is eligible to be an active member of the Scheme is entitled to immediate payment of a pension and a lump sum before reaching pension age if - 

(a) after consultation with the Scheme medical adviser, the Secretary of State is of the opinion that the member has suffered a permanent breakdown in health involving incapacity for any full-time employment, and

(b) the member either - 


(i) has at least two years' qualifying service, or

(ii) was formerly entitled to rights under a personal pension scheme or a retirement annuity contract in respect of which a transfer value payment has been accepted by the Scheme under Part F (transfers).

    (2) For the purpose of these Rules a member's breakdown in health is "permanent" if, in the opinion of the Secretary of State, after consultation with the Scheme medical adviser, it will continue at least until the member reaches pension age.

    (3) For the purpose of these Rules a member's breakdown in health involves incapacity for any full-time employment if, in the opinion of the Secretary of State, after consultation with the Scheme medical adviser, as a result of the breakdown the member is incapable of any gainful full-time employment.

    (4) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member's final pensionable earnings by N.

    (5) For the purposes of paragraph (4), N is equal to the greater of - 

(a) the sum of the member's reckonable service and half of the further reckonable service which he would have been able to count under the Scheme if he had remained an active member from the date he ceased to be such a member until pension age (both expressed as a number of years), and

(b) 20.

    (6) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

     D.6 Early payment of benefits: active members with significant impairment of capacity for gainful employment

    (1) An active member who ceases to be in service by virtue of which he is eligible to be an active member of the Scheme is entitled to immediate payment of a pension and a lump sum before reaching pension age if - 

(a) in the opinion of the Secretary of State, after consultation with the scheme medical adviser, the member has suffered a breakdown in health as a result of which his capacity for gainful employment is significantly impaired, and

(b) the member either - 


(i) has at least two years' qualifying service, or

(ii) was formerly entitled to rights under a personal pension scheme or a retirement annuity contract in respect of which a transfer value payment has been accepted by the Scheme under Part F (transfers), and



(c) the member is not entitled to a pension under rule D.5.(1).

    (2) The amount of the annual pension payable under this rule is calculated by multiplying one seventieth of the member's final pensionable earnings by N.

    (3) For the purposes of paragraph (2), N is equal to the sum of the member's reckonable service and one-third of the further reckonable service which he would have been able to count under the Scheme if he had remained an active member from the date he ceased to be such a member until pension age (both 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.

     D.7 Early payment of benefits: deferred members with permanent serious ill-health

    (1) A former active member is entitled to immediate payment of a pension and a lump sum before reaching pension benefit age if - 

(a) in the opinion of the Secretary of State, after consultation with the Scheme medical adviser and, if the Scheme medical adviser requests a further opinion, with such other person as is consulted in pursuance of that request, the member has suffered a permanent breakdown in health involving incapacity for any full-time employment (see rule D.5(2) and (3)),

(b) the member either - 


(i) has at least two years' qualifying service, or

(ii) was formerly entitled to rights under a personal pension scheme or a retirement annuity contract in respect of which a transfer value payment has been accepted by the Scheme under Part F (transfers), and



(c) the member makes a claim for immediate payment of the pension and lump sum under this rule to the Scheme administrator.

    (2) 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.

    (3) The amount of the lump sum payable under this rule is calculated by multiplying the amount of the annual pension so payable by 3.

     D.8 Member's requests for review of ill-health awards

    (1) This rule applies if a member - 

(a) where it would be payable to a surviving spouse, if the member and the surviving spouse married less than six months before the member's death, and

(b) where it would be payable to a surviving civil partner, if the civil partnership was formed less than six months before the member's death.

    (4) Paragraph (3) is subject to rule E.28 (guaranteed minimum pensions for surviving spouses).

     E.2 Other adult dependants' pensions

    (1) If an active member, a deferred member or a pensioner member dies leaving a surviving adult dependant and no surviving spouse or civil partner, the Secretary of State may award the surviving adult dependant a pension for life.

    (2) Paragraph (1) does not apply if the member is an active member who would not have qualified for a pension under rule D.2 (retirement before reaching pension age) if his service had ceased on the date of death otherwise than by reason of death.

    (3) A person is a surviving adult dependant in relation to a member for the purposes of this rule if the person satisfies the Secretary of State that at the time of the member's death - 

(a) the person and the member were cohabiting as partners in an exclusive and substantial relationship,

(b) the person and the member were not prevented from marrying (or would not have been so prevented apart from both being of the same sex), and

(c) either the person was financially dependent on the member or the person and the member were financially interdependent.

     E.3 Amount of pensions under rules E.1 and E.2: active members

    (1) This rule applies in the case of a deceased active member, other than an active member who would not have qualified for a pension under rule D.2 if his service had ceased on the date of death otherwise than by reason of death.

    (2) The annual amount of the pension payable under rule E.1 (surviving spouses' and civil partners' pensions) and rule E.2 (other adult dependants' pensions) is the appropriate fraction of the member's final pensionable earnings multiplied by RS, where RS is the higher of - 

(a) N for the purposes of rule D.5(4) (early payment of benefits: active members with permanent serious ill-health) if the member had become entitled to a pension under rule D.5 on the date of death, and

(b) the member's reckonable service at the date of death in years.

This is subject to paragraphs (4) and (6).

    (3) The appropriate fraction is 1/112.

    (4) If immediately before the member's death he was entitled to exercise the option under rule G.3 or G.4 (aggregation of service), then, unless paragraph (5) applies, these Rules apply as if the member had exercised that option before his death (and accordingly no amount is payable under rule E.4 in respect of the service that is aggregated).

    (5) This paragraph applies if in the opinion of the Secretary of State the value of the benefits payable in respect of the member under these Rules would be greater if these Rules did not apply as if the member had exercised that option before his death.

    (6) For the purposes of paragraph (2) - 

(a) if the pension is payable to a civil partner, N for the purposes of rule D.5(4) is calculated on the basis that reckonable service within rule A.8(1)(a) only counts if and to the extent that it relates to service after 5th April 1988, and

(b) reckonable service exceeding 37 1/3 years does not count.

     E.4 Amount of pensions under rules E.1 and E.2: deferred members

    (1) In the case of a deceased deferred member, the annual amount of a pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated by multiplying the appropriate fraction of the member's final pensionable earnings by the member's reckonable service at the date of death in years.

    (2) The appropriate fraction is 1/112.

    (3) For the purposes of paragraph (1) - 

(a) if the pension is payable to a civil partner, reckonable service within rule A.8(1)(a) only counts if and to the extent that it relates to service after 5th April 1988, and

(b) reckonable service exceeding 37 1/3 years does not count.

    (4) This rule is subject to rule E.3(4) (no amount payable under this rule in certain cases where the member was both an active member and a deferred member).

     E.5 Amount of pensions under rules E.1 and E.2: pensioner members

    (1) In the case of a deceased pensioner member, the annual amount of a pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated by multiplying the appropriate fraction of the member's final pensionable earnings - 

(a) if the member's pension was calculated under rule D.1(3), D.2(3) or D.7(2), by the reckonable service mentioned in that rule,

(b) if the member's pension was calculated under rule D.4(4), by the reckonable service used for the first calculation mentioned in that rule, and

(c) if the member's pension was calculated under rule D.5(4) or D.6(2), by the figure that is N for the purposes of that rule.

This is subject to paragraph (3).

    (2) The appropriate fraction is 1/112.

    (3) For the purposes of paragraph (1) - 

(a) if the pension is payable to a civil partner - 


(i) in a case within paragraph (1)(a) or (b), reckonable service within rule A.8(1)(a) only counts if and to the extent that it relates to service after 5th April 1988, and

(ii) in a case within paragraph (1)(c), N for the purposes of rule D.5(4) or D.6(2) is calculated on the basis that reckonable service within rule A.8(1)(a) only counts if and to the extent that it relates to service after that date, and



(b) reckonable service exceeding 37 1/3 years does not count.

    (4) This rule is subject to rule D.10 (member's option to exchange lump sum for pension).

     E.6 Reduction in pensions under rules E.1 and E.2 in cases of wide age disparity

    (1) Where on the death of a member a pension is payable under rule E.1 or E.2 to a person ("the beneficiary") who is more than 12 years younger than the member, the amount of the pension calculated in accordance with rule E.3, E.4 or E.5 is reduced by the appropriate amount.

    (2) That amount is the lesser of - 

(a) 50% of the pension so calculated, or

(b) 2.5% × (N -12) of the pension so calculated,

where N is the number of whole years by which the beneficiary is younger than the member.

    (3) This rule is subject to rule K.8.

     E.7 Adult dependants entitled to two or more pensions under this Part

    (1) This rule applies if - 

(a) pensions are payable to a person under rule E.1 or E.2 in respect of more than one deceased member, and

(b) the total reference service for the pensions exceeds the dependant's maximum.

    (2) In this rule "reference service" means - 

(a) in the case of a pension calculated under rule E.3, the higher of the figures given by rule E.3(2)(a) and (b),

(b) in the case of a pension calculated under rule E.4, the figure by which the appropriate fraction of the member's final pensionable earnings is multiplied under rule E.4(1), and

(c) in the case of a pension calculated under rule E.5 - 


(i) if the member's pension was calculated under rule D.1(3), D.2(3) or D.7(2), the reckonable service mentioned in that rule,

(ii) if the member's pension was calculated under rule D.4(4), the reckonable service used for the first calculation mentioned in that rule, and

(iii) if the member's pension was calculated under rule D.5(4) or D.6(2), N for the purposes of that rule.

    (3) In this rule "the dependant's maximum" means - 

(a) if none of the deceased members' reckonable service exceeded 35 years, 35 years,

(b) if one (and only one) of the deceased members' reckonable service exceeded 35 years, that member's reckonable service (but not exceeding 37 1/3 years), and

(c) if two or more of the deceased members' reckonable service exceeded 35 years, the reckonable service of the member with the greatest reckonable service (but not exceeding 37 1/3 years).

    (4) The total amount of the pensions payable as mentioned in paragraph (1) immediately after the death, excluding any amount that is attributable to any increase made as a result of rule D.10 (member's option to exchange lump sum for pension), must not exceed such amount as results from the pensions being calculated by reference to the dependant's maximum.

    (5) In determining the amount of each of the pensions so payable to arrive at that total amount, the reference service for the pensions is to be reduced in such a manner as results in the greatest total amount.

    (6) In determining for the purposes of the Scheme whether a pension is payable under rule E.1 or E.2, the fact that the amount of any pension that would otherwise be payable under that rule is reduced to nil as a result of this rule is to be disregarded.

(a) rule E.13 (children born after the member's death), and

(b) rule E.14 (children entitled to three or more pensions).

     E.9 Meaning of "eligible child"

    (1) In these Rules "eligible child", in relation to a deceased member, means - 

(a) a child of the member who meets any of conditions A to C, or

(b) any other child or young person who - 


(i) meets any of those conditions, and

(ii) was financially dependent on the member at the date of death.

    (2) Condition A is that the person is aged under 18.

    (3) Condition B is that the person is in full-time education or vocational training and is aged under 23.

    (4) Condition C is that the person is unable to engage in gainful employment because of physical or mental disability from which the person began to suffer before the age of 23.

    (5) A person who is aged under 19 on the date when he ceases to be in full-time education is treated as being in such education until the first of the following dates after he so ceases - 

(a) the second Monday in January,

(b) the second Monday after Easter Monday,

(c) the second Monday in September,

(d) his 19th birthday,

(e) the date on which he becomes engaged full-time in gainful employment.

    (6) A person who at the date of a member's death is aged under 23 and taking a break from full-time education or vocational training not exceeding 15 months is assumed to be continuing in such education or training during the break for the purpose of determining - 

(a) whether the person is an eligible child at that date, and

(b) how many pensions are payable under rule E.8(1) immediately after that date.

    (7) A person who is prevented from continuing in full-time education or vocational training on account of ill-health is treated for the purposes of condition B and paragraph (5) as continuing to be in such education or training until he is no longer so prevented.

    (8) Paragraph (7) does not apply at any time when the person's health is such that it is reasonable to assume that he will not be capable of undertaking any further education or training.

    (9) Nothing in paragraph (6) or (7) requires a pension to be paid in respect of a person during the break in his education or training.

     E.10 Amount of children's pension under rule E.8: active members

    (1) This rule applies for determining in the case of a deceased active member the annual amount of a pension payable under rule E.8(1) (surviving children's pensions).

    (2) The amount of such a pension is determined by reference to the amount ("the member's assumed pension") that is the annual pension to which the member would have been entitled under rule D.5 (early payment of benefits: active members with permanent serious ill-health) if he had become entitled to a pension under that rule on the date of death (see rule D.5(4) and (5)).

    (3) If - 

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) one pension is payable at that time under rule E.8(1),

the annual amount of the pension payable under rule E.8(1) is equal to one quarter of the member's assumed pension.

    (4) If - 

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension payable under rule E.8(1) is equal to - 

SA is the amount of the pension payable under rule E.1 or E.2 (disregarding rules D.10, E.6 and E.7), expressed as a percentage of the member's assumed pension,

AP is the member's assumed pension, and

N is the number of pensions payable under rule E.8(1).

    (5) If - 

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) one, two or three pensions are payable at that time under rule E.8(1),

the annual amount of each pension payable under rule E.8(1) is equal to one third of the member's assumed pension.

    (6) If - 

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) four or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension payable under rule E.8(1) is equal to the member's assumed pension, divided by the number of pensions payable under that rule.

    (7) If - 

(a) immediately before the member's death he was entitled to exercise the option under rule G.3 or G.4 (aggregation of service),

(b) no pension is payable under rule E.1 or E.2, and

(c) the cost condition is met (see paragraph (8)),

these Rules apply as if the member had exercised that option before his death.

    (8) The cost condition is that in the opinion of the Secretary of State the total cost of providing benefits in respect of the member under the Scheme and the AFPS 1975 would have been greater if he had exercised that option than if he had not (apart from paragraph (7)).

    (9) In forming an opinion for the purposes of paragraph (8), the Secretary of State must - 

(a) assume that in the case of each child in respect of whom a pension is payable under rule E.8(1), or under the AFPS 1975 by virtue of any entitlement in respect of the member as a deferred member of the AFPS 1975, the pension will be payable for the period of 5 years or, if longer, until the child reaches 18, and

(b) disregard the effect of the Pensions (Increase) Act 1971 in respect of any period after the date of death.

    (10) If - 

(a) a pension is payable under rule E.8(1) in respect of a child,

(b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(c) the pension under rule E.1 or E.2 ceases to be payable,

the annual amount of the pension payable under rule E.8(1) in respect of the child for any period after the date on which the pension under rule E.1 or E.2 ceases to be payable is calculated in accordance with paragraphs (5) to (9) as if no pension had been payable under rule E.1 or E.2 immediately after the date of the member's death.

     E.11 Amount of children's pension under rule E.8: deferred members

    (1) This rule applies for determining in the case of a deceased deferred member the annual amount of a pension payable under rule E.8(1) (surviving children's pensions).

    (2) The amount of such a pension is determined by reference to the annual pension to which the member would have been entitled under rule D.2, on the assumption that the pension had become payable on the date of death ("the member's deferred pension").

    (3) If - 

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) one pension is payable at that time under rule E.8(1),

the annual amount of that pension is equal to one quarter of the member's deferred pension.

    (4) If - 

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to - 

SA is the amount of the pension payable under rule E.1 or E.2 (disregarding rules D.10, E.6 and E.7), expressed as a percentage of the member's deferred pension,

DP is the member's deferred pension, and

N is the number of pensions payable under rule E.8(1).

    (5) If - 

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) one, two or three pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to one third of the member's deferred pension.

    (6) If - 

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) four or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to the member's deferred pension, divided by the number of pensions payable under rule E.8(1).

    (7) If - 

(a) a pension is payable under rule E.8(1) in respect of a child,

(b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(c) the pension under rule E.1 or E.2 ceases to be payable,

the annual amount of the pension payable under rule E.8(1) in respect of the child for any period after the date on which the pension under rule E.1 or E.2 ceases to be payable is calculated in accordance with paragraph (5) or (6) as if no pension had been payable under rule E.1 or E.2 immediately after the date of the member's death.

     E.12 Amount of children's pension under rule E.8: pensioner members

    (1) This rule applies for determining in the case of a deceased pensioner member the annual amount of a pension payable under rule E.8(1) (surviving children's pensions).

    (2) The amount of such a pension is determined by reference to the annual pension to which the member was entitled on the date of death ("the member's pension"), except that - 

(a) in a case where the member's pension was increased under rule D.10 (option to exchange lump sum for pension), the member's pension is taken for this purpose to exclude so much of the pension as is attributable to that increase, and

(b) where that option was exercised so as to increase the pension under rule E.8(1), this rule is without prejudice to that increase.

    (3) If - 

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) one pension is payable at that time under rule E.8(1),

the annual amount of that pension is equal to one quarter of the member's pension.

    (4) If - 

(a) a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) two or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to - 

SA is the amount of the pension payable under rule E.1 or E.2 (disregarding rules D.10, E.6 and E.7), expressed as a percentage of the member's pension,

P is the member's pension, and

N is the number of pensions payable under rule E.8(1).

    (5) If - 

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) one, two or three pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to the one third of the member's pension.

    (6) If - 

(a) no pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(b) four or more pensions are payable at that time under rule E.8(1),

the annual amount of each pension is equal to the member's pension, divided by the number of pensions payable under rule E.8(1).

    (7) If - 

(a) a pension is payable under rule E.8(1) in respect of a child,

(b) the annual amount of the pension is calculated under this rule on the basis that a pension is payable under rule E.1 or E.2 immediately after the date of the member's death, and

(c) the pension under rule E.1 or E.2 ceases to be payable,

the annual amount of the pension payable under rule E.8(1) in respect of the child for any period after the date on which the pension under rule E.1 or E.2 ceases to be payable is calculated in accordance with paragraph (5) or (6) as if no pension had been payable under rule E.1 or E.2 immediately after the date of the member's death.

     E.13 Children born after the member's death

    (1) For the purposes of rule E.8(1), a member is only treated as leaving a child who is born after the member's death if the child is born before the first anniversary of the member's death.

    (2) No pension is payable under that rule in respect of any period before the child's birth.

    (3) But a pension in respect of a child born after the member's death is treated as payable in respect of that period in determining the number of pensions payable immediately after the date of the member's death for the purposes of rules E.10(3), (4), (5) and (6), E.11(3), (4), (5) and (6) and E.12(3), (4), (5) and (6) (amount of children's pensions).

     E.14 Children entitled to three or more pensions

    (1) This rule applies if, apart from this rule, pensions would be payable in respect of the same child under rule E.8 as a result of the death of more than two members.

    (2) Only the pensions payable as a result of the death of two of the members and which together result in the payment of the greatest annual amount in respect of the child are payable.

    (3) Rule E.27(3) (under which benefits are payable in respect of dual capacity members under this Part as if two or more members of the kinds in question had died and the amounts payable are determined accordingly) does not apply for the purpose of determining for this rule the number of members as a result of whose deaths pensions are payable.

    (4) But the amount of the pensions payable as the result of the death of any member to whom that rule applies are calculated in accordance with rule E.27 before applying paragraph (2).

(a) the person or persons nominated by the member in accordance with rule E.21,

(b) any person who is entitled to a pension under rule E.1 or to whom a pension may be awarded under rule E.2, or

(c) the member's personal representatives.

    (2) If two or more persons have been so nominated and the Secretary of State decides to pay the lump sum to them - 

(a) the payment is to be made to them in such proportions as the member has specified in the nomination, or

(b) if no proportions are so specified, in such proportions as the Secretary of State considers appropriate.

    (3) This rule does not apply if - 

(a) the member is - 


(i) a pensioner member, or

(ii) a pension credit member who dies after any benefits attributable to his pension credit have become payable, and



(b) the death takes place - 



(i) more than five years after the member's pension becomes payable, or

(ii) after the member's pension has been commuted under rule J.8 (commutation of small pensions).

    (4) Any lump sum that is paid under this rule must be paid before the end of the period of two years beginning with the day on which the member died.

     E.16 Amount of lump sum benefit under rule E.15: active members

    (1) In the case of an active member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to the member's final pensionable earnings, multiplied by four.

This is subject to paragraphs (2) to (5).

    (2) If - 

(a) the member was both an active member and a deferred member, and

(b) the amount payable under rule E.17 is greater than the amount payable under paragraph (1),

the amount payable under rule E.17 is payable instead of the amount specified in paragraph (1).

    (3) If the member was both an active member and a pensioner member, the amount payable under paragraph (1) is reduced by the amount of the lump sum paid to the member under rule D.1, D.2, D.4, D.5, D.6 or D.7.

    (4) If the member was both an active member of the Scheme and a pensioner member of the AFPS 1975 (or would have been apart from any abatement of his pension under the terms of that Scheme), paragraph (3) and rule E.18 apply as if he were a pensioner member of the Scheme (and accordingly the amount payable under paragraph (1), reduced in accordance with paragraph (3), is payable instead of the amount under rule E.18(3)).

    (5) If a lump sum is payable in respect of the member under the AFPS 1975 by virtue of any entitlement in respect of the member as a deferred member of that Scheme, the amount specified in paragraph (1) or, as the case may be, paragraph (2) is only payable if and to the extent that it exceeds the aggregate amount of any lump sum payments made to or in respect of him under the AFPS 1975.

     E.17 Amount of lump sum benefit under rule E.15: deferred members

    (1) In the case of a deceased deferred member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to the amount of the lump sum to which the member would have become entitled under rule D.2 if the member had become entitled to a lump sum under that rule on the date of death.

But this is subject to paragraphs (2) and (3).

    (2) If the member was both a deferred member and an active member, the amount payable under rule E.16 is payable instead of the amount under paragraph (1) unless the amount under paragraph (1) is greater.

    (3) If a lump sum is payable in respect of the member under the AFPS 1975 by virtue of any entitlement in respect of the member as a deferred member of the AFPS 1975, the amount specified in paragraph (1) is only payable if and to the extent that it exceeds the aggregate amount of any lump sum payments made to or in respect of him under the AFPS 1975.

     E.18 Amount of lump sum benefit under rule E.15: pensioner members

    (1) In the case of a deceased pensioner member, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to - 

A is the amount of the pension that would have been payable to the member during so much of the period of five years beginning with the date on which the pension became payable as falls after the date of death, and

B is the amount of any lump sum paid to the member under rule D.1, D.2, D.4, D.5, D.6 or D.7.

    (2) Any increases in the pension which might have become payable after the date of death are disregarded for the purposes of paragraph (1).

    (3) If the member was both a pensioner member and an active member, the amount payable under rule E.16 is payable instead of the amount under paragraph (1).

     E.19 Amount of lump sum benefit under rule E.15: pension credit members

    (1) In the case of a pension credit member who dies before any benefits derived from his pension credit have become payable, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is calculated by multiplying by 3 the amount of the annual pension that would have been payable to him under rule D.3 if that pension had become payable to him on the date of his death.

    (2) In the case of a pension credit member who dies after the pension under rule D.3 becomes payable, the amount of the lump sum payable under rule E.15 (death of a member: lump sum benefit) is equal to - 

A is the amount of the pension that would have been payable to the member during so much of the period of five years beginning with the date on which the pension became payable as falls after the date of death, and

B is the amount of any lump sum paid to the member under rule D.3 or D.4.

    (3) Any increases in the pension which might have become payable after the date of death are disregarded for the purposes of paragraph (2).

     E.20 Members affected by court orders to former spouses and civil partners on death

    (1) This rule applies where on a member's death the Secretary of State is required under a court order to pay any part of any amount payable under rule E.15 to the member's former spouse or civil partner.

    (2) Where this rule applies the amount payable under that rule is determined as if no such order had been made, and then this Part applies as if the amount payable under rule E.15 were reduced by the amount payable under the court order.

     E.21 Nominations for lump sum death benefits

    (1) For the purposes of rule E.15 (death of a member: lump sum benefits) - 

(a) a member may nominate one or more persons, and

(b) if he nominates two or more persons, he may specify in the nomination the proportions of the payment he wishes each of them to receive.

    (2) The member must make his nomination by notice in writing to the Scheme administrator in such form as the Secretary of State may require or is willing to accept.

    (3) A member may revoke or alter a nomination by a further notice in writing to the Scheme administrator in such form as the Secretary of State may require or is willing to accept.

    (4) The nomination of a person is invalid - 

(a) if - 


(i) the person nominated is an individual who was the spouse or civil partner of the member at the date the nomination was made and is not the spouse or civil partner of the member immediately before the member's death, and

(ii) the member did not confirm the nomination by notice in writing to the Scheme administrator after the marriage or civil partnership ended, or



(b) if the person nominated is an individual who predeceases the member.

    (5) If a person nominated is convicted of the offence of murder or manslaughter of the member, the person's nomination is to be treated as invalid from the member's death.

    (6) If a person nominated is convicted of any other offence of which the unlawful killing or wounding of the member is an element, the Secretary of State may determine that the nomination is to be treated as invalid from the member's death.

(a) the pension payable under rule E.1 (surviving spouses' and civil partners' pensions) or rule E.2 (other adult dependants' pensions) is calculated as mentioned in paragraph (3),

(b) the amount payable under rule E.8(1) by virtue of rule E.10 (surviving children's pensions) - 


(i) is first calculated as if the member were not a pension debit member (in particular, in determining the amount of the member's assumed pension or annual pension for the purposes of rule E.10(2)), and

(ii) is then subject to any reduction required under section 31 of the Welfare Reform and Pensions Act 1999 ("section 31"), and



(c) the lump sum payable under rule E.15 (death of a member: lump sum benefit) is calculated under rule E.16.

    (3) The pension is first calculated under rule E.3 as if the member were not a pension debit member, and then it is reduced in the same proportion as the member's assumed pension would have been reduced under that section if he had been entitled to it on the date of death.

    (4) If the member was a deferred member - 

(a) the amount of the pension payable under rule E.1 or E.2 is calculated by reference to the amount of the pension to which the member would have been entitled after any reduction under section 31, and

(b) the amount payable under rule E.8(1) by virtue of rule E.11 - 


(i) is first calculated as if the member were not a pension debit member (in particular, in determining the amount of the annual pension referred to in rule E.11(2)), and

(ii) is then subject to any reduction required under section 31.

    (5) If the member was a pensioner member - 

(a) the amount of the pension payable under rule E.1 or E.2 is calculated by reference to the amount of the pension to which the member was entitled (after the reduction under section 31), and

(b) the amount payable under rule E.8(1) by virtue of rule E.12 - 


(i) is first calculated as if the member were not a pension debit member (in particular, in determining the amount of the annual pension referred to in rule E.12(2) to which the member was entitled), and

(ii) is then subject to any reduction required under section 31.

    (6) The effect of any option under rule D.10 (option to exchange lump sum for pension) to increase any pension is to be disregarded in determining the amount payable under paragraph (5) in the first instance; then the option is to be taken into account so far as it increases the amount of the pension so payable.

     E.23 Dependants' pensions: suspension and recovery

    (1) This rule applies where - 

(a) on a member's death a pension has been awarded and paid under this Part, and

(b) subsequently it appears to the Secretary of State that the member or the person to whom the pension has been paid made a false declaration or deliberately suppressed a material fact in connection with the award.

    (2) The Secretary of State may - 

(a) cease paying the pension, and

(b) recover any payment made under the award.

    (3) Paragraph (2) does not affect the Secretary of State's right to recover a payment or overpayment in any case where he considers it appropriate to do so.

     E.24 Recovery of lump sum payments made to nominee

    (1) Where - 

(a) payment is made to a person under rule E.15 (death of a member: lump sum benefit) because of the person's nomination by a member, and

(b) the person's nomination is subsequently found to be invalid under rule E.21(4) or (5),

the Secretary of State may recover the payment.

    (2) Paragraph (1) does not affect the Secretary of State's right to recover a payment or overpayment in any case where he considers it appropriate to do so.

     E.25 Provisional awards of children's pensions: later adjustments

    (1) This rule applies where after the death of an active member, a deferred member or a pensioner member - 

(a) a pension is paid in respect of one or more persons under this Part on the basis that they were eligible children at the date of the member's death and that there were then no other eligible children, and

(b) subsequently it appears - 


(i) that a person in respect of whom such a pension has been paid was not then an eligible child, or

(ii) that a further person was then an eligible child, or

(iii) that a child who was born after the member's death is an eligible child.

    (2) The Secretary of State may make such adjustments in the amount of the pensions payable in respect of the children in question as are required in view of the facts as they subsequently appear.

    (3) Paragraph (2) does not affect the Secretary of State's right to recover a payment or overpayment in any case where he considers it appropriate to do so.

     E.26 Payments under this Part

    (1) A pension under this Part is payable from the day after the date of the death of the member.

    (2) Payment of a lump sum payable under this Part must be made before the expiry of the period of two years beginning with that date.

    (3) A pension payable under this Part in respect of an eligible child aged under 18 must be paid - 

(a) if the child is in the care of the member's surviving spouse or civil partner or a person who is the member's surviving adult dependant for the purposes of rule E.2, to the surviving spouse or civil partner or the adult dependant, and

(b) in any other case, to the child's guardian,

unless the Secretary of State directs otherwise.

     E.27 Dual capacity membership

    (1) This rule applies where the deceased member was - 

(a) a member of the Scheme of two or more of the kinds specified in paragraph (2), or

(b) a member of the Scheme and a member of the AFPS 1975.

    (2) They are - 

(a) an active member,

(b) a deferred member,

(c) a pensioner member, and

(d) a pension credit member.

    (3) Where paragraph (1)(a) applies, the general rule is that - 

(a) benefits are payable in respect of the member under this Part as if two or more members of the kinds in question had died (so that two or more pensions or lump sums are payable in respect of the one deceased member), and

(b) the amounts payable are determined accordingly.

    (4) But that general rule is subject to - 

(a) rule E.3(4) and E.4(4) (adult dependants' pension where the member was both an active member and a deferred member),

(b) rule E.14(3) and (4) (children entitled to three or more pensions),

(c) rules E.16(2) and E.17(2) (amount of lump sum where the member was both an active member and a deferred member), and

(d) rule E.16(3) and E.18(3) (amount of lump sum where the member was both an active member and a pensioner member).

    (5) Where paragraph (1)(b) applies, the general rule is that benefits are payable in respect of the member under this Part regardless of the member's membership of the AFPS 1975.

    (6) But that general rule is subject to rules E.16(4) and (5) and E.17(3) (amount of lump sum where member was both a member of the Scheme and a member of the AFPS 1975).

     E.28 Guaranteed minimum pensions for surviving spouses

    (1) This rule applies where the surviving spouse of a deceased active, deferred or pensioner member has a guaranteed minimum under section 17 of the Pension Schemes Act 1993 in relation to benefits in respect of the deceased member under the Scheme.

    (2) If apart from this rule - 

(a) no pension would be payable to the surviving spouse under this Part, or

(b) the weekly rate of the pension payable would be less than the guaranteed minimum,

a pension the weekly rate of which is equal to the guaranteed minimum is payable to the surviving spouse for life.

    (3) Paragraph (2) does not apply if the pension is forfeited in a case where rule J.6(1)(a) (conviction of treason or Official Secrets Acts offences) applies.

(a) have been active members of the AFPS 1975 or the Scheme,

(b) have ceased to be in service by virtue of which they are eligible to belong to the Scheme, and

(c) begin to be in such service again on or after 6th April 2005.

    (2) But paragraph (1) does not apply where rule A.10(1) (disregard of short breaks in service) applies.

    (3) In these Rules an active member of the Scheme to whom this Part applies is referred to as a "a re-employed active member".

    (4) In this Part, in relation to any re-employed active member - 

(a) the service referred to in paragraph (1)(b) is referred to as "the earlier service", and

(b) the service referred to in paragraph (1)(c) is referred to as "the current service".

    (5) Certain rules in this Part also apply to members who opted to cease to be active members and then became such members again (see rule G.6: application of rule G.3 to members who opted to leave the Scheme).

(a) the reckonable service and qualifying service that a re-employed active member was entitled to count immediately before becoming an active member in the current service are disregarded in determining rights in respect of his current service, and

(b) the reckonable service and qualifying service that a re-employed active member is entitled to count as a result of his membership in the current service are disregarded in determining rights in respect of his earlier service.

    (2) That general rule is subject to the following provisions of this Part (and see also rule A.10: disregard of short breaks in service).

     G.3 Option to aggregate earlier membership: previous members of the Scheme

    (1) This rule applies in the case of a re-employed active member who immediately before becoming an active member in the current service was entitled under these Rules to count reckonable service and qualifying service.

    (2) The member may opt for that service - 

(a) to be aggregated with the reckonable service and qualifying service that he is entitled to count as a result of his membership of the Scheme in the current service for the purpose of determining rights under the Scheme in respect of that membership, and

(b) to be disregarded for all other purposes of the Scheme.

This is subject to the paragraphs (3) and (4) and rule G.5.

    (3) If the reckonable service and qualifying service mentioned in paragraph (1) is service in respect of two or more earlier periods of membership, the member may only exercise the option under paragraph (2) in relation to the reckonable service and qualifying service in respect of the later of those periods (or, if there are more than two, the latest of them).

    (4) But in paragraph (3) the reference to the later or latest of those periods includes - 

(a) any period ("the earlier aggregated period") in respect of which the member has previously exercised the option under paragraph (2) or rule G.4 or an option under rule K.5 if he had the right to exercise that option because of his being a member in that later or latest period of service, and

(b) any period earlier than the earlier aggregated period in respect of which the member previously exercised such an option if he had the right to exercise that option because of his being a member in the earlier aggregated period,

and so on.

     G.4 Option to aggregate earlier membership: previous members of the AFPS 1975

    (1) This rule applies in the case of a re-employed active member to whom rule G.3 does not apply who was awarded a preserved pension and lump sum under the AFPS 1975 in respect of qualifying and reckonable service which ended before 6th April 2005.

    (2) The member may opt for the qualifying and reckonable service in respect of which the member was awarded the preserved pension - 

(a) to be aggregated with the reckonable service and qualifying service that he is entitled to count as a result of his membership of the Scheme in the current service for the purpose of determining rights under the Scheme in respect of that membership, and

(b) to be disregarded for all other purposes.

This is subject to paragraphs (3) and (4) and rule G.5.

    (3) If the member was awarded two or more preserved pensions under the AFPS 1975, the member may only exercise the option under paragraph (2) in relation to the service to which the later or, if there are more than two, the latest of the awards relates.

    (4) If - 

(a) the award under the AFPS 1975 of a member who exercises an option under this rule is subject to a pension debit, and

(b) in the opinion of the Scheme administrator it is necessary for the purpose of giving effect to the pension debit for some or all of the benefits to which the pension member is entitled under the Scheme as a result of exercising the option to be taken in a different form from that in which he would otherwise be entitled to take them,

the Scheme administrator may, after taking advice from the Scheme actuary, make such modifications to the member's rights as to the form of those benefits as he considers necessary for that purpose.

     G.5 Procedure for exercising options under rules G.3 and G.4

    (1) An option under rule G.3(2) may only be exercised before the end of the current service.

    (2) An option under rule G.3(2) or rule G.4(2) may only be exercised by notice in writing to the Scheme administrator in such form as the Secretary of State requires.

     G.6 Application of rule G.3 to members who opted to leave Scheme

    (1) Rule G.3 applies to a member who, having been an active member of the Scheme, opted to cease to be such a member whilst continuing to be in service by virtue of which he is eligible to belong to the Scheme as it applies to a member who ceases to be in such service.

    (2) In relation to such a person this Part applies as if the member - 

(a) had ceased to be in such service when he ceased to be an active member by virtue of the option, and

(b) had begun to be in such service again at the time when he becomes an active member again;

and references to a re-employed active member, the earlier service and the current service are to be read accordingly.

    (3) This rule applies subject to rule A.10(2) (disregard of short breaks in service).

     G.7 Re-employment after ill-health awards

    (1) This rule applies if - 

(a) a re-employed active member has received benefits under rule D.5 or D.6, and

(b) the enhancement period exceeds the period beginning with the day on which his early retirement began ("the first retirement day") and ending with the day before his current service began.

    (2) In this rule "the enhancement period" means - 

(a) in the case of a member who has received a pension under rule D.5, the amount by which N years exceeds the reckonable service he was entitled to count when he became entitled to the pension under that rule, where N has the meaning given in rule D.5(5), and

(b) in the case of a member who has received a pension under rule D.6, one-third of the further reckonable service referred to in rule D.6(3).

    (3) The re-employed member's current service counts as reckonable service for the purposes of the Scheme only in so far as it is service after the time when the period since the beginning of the first retirement day equals the enhancement period.

(a) is re-engaged in service by virtue of which he is eligible to belong to the Scheme, or

(b) is re-engaged in service by virtue of which he is eligible for membership of the Reserve Forces Pension Scheme

(whether or not he is an active member in that service).

    (2) In this Part - 

(a) a person to whom this Part applies is referred to as a "re-employed pensioner",

(b) the service that has terminated and in respect of which the pension is or will be payable and the service that he enters on re-employment are referred to respectively as the "old service" and "new service", and

(c) the pension to which he is or will become entitled in respect of the old service is referred to as the "old service pension".

     H.2 Abatement of pensions on re-employment: general rules

    (1) If - 

(a) the annual rate of the basic pay payable to the re-employed pensioner as at the last day of his old service ("the old rate"), exceeds the amount of the annual rate of the basic pay payable to him at the time he enters the new service ("the new rate"), and

(b) the annual rate of the old service pension to which he is entitled at the time of entering the new service or, if he is a deferred member, at the time when he becomes entitled to payment of the pension, is greater than the amount of that excess,

the annual rate of the old service pension as at that time is reduced by such amount ("the reduction amount") as is necessary so that it is equal to the amount of that excess as at that time.

    (2) If the new rate equals or exceeds the old rate, the re-employed pensioner is not entitled to payment of the old service pension during the new service.

    (3) Where paragraph (1) applies, the annual rate of the old service pension continues to be reduced during the new service by the reduction amount regardless of any increase in the annual rate of the old service pension made after the time when the member is re-employed, or, if he is a deferred member, after the time he becomes entitled to payment of the pension.

    (4) In the case of a re-employed pensioner who exercises the option under rule D.10 (option to exchange lump sum for pension) in relation to the old service pension, any increase of the pension as a result of the exercise of the option is disregarded for the purposes of this Part.

     H.3 Abatement of pensions: effect of changes after re-employment

    (1) This rule applies where after the re-employed pensioner enters the new service the re-employed pensioner is re-employed in another post or his post is regraded.

    (2) Rule H.2 applies from the time of the re-employment or regrading as if the re-employed pensioner were entering the new service at that time, and the service before that time is disregarded.

     H.4 Special rule about annual rate of pay in old service in cases of entitlement to two or more pensions

    (1) This rule applies where the re-employed pensioner is entitled, or apart from this Part would be entitled, to the payment of two or more pensions in respect of old service, (including cases where, in addition to being entitled to one or more pensions under the Scheme, the re-employed pensioner is entitled to one or more pensions under the AFPS 1975).

    (2) If two or more of the pensions relate to service that ended before the re-employed pensioner's pension age, in the application of rules H.2 and H.3 to each of those pensions the annual rate of the basic pay payable to the re-employed pensioner at the time he left his old service is taken to be whichever of those annual rates is the greater or greatest.

     H.5 Adjustment of basic pay in old service

    (1) If the re-employed pensioner's new service does not begin immediately after the old service ceases, for the purposes of this Part the annual rate of the basic pay payable to the re-employed pensioner at the time he left his old service is taken to be the adjusted annual rate.

    (2) In paragraph (1) "the adjusted annual rate" means the actual annual rate of the basic pay so payable, increased by the same amount, if any, as a pension would have been increased under the Pensions (Increase) Act 1971 by the day on which the new service began if - 

(a) it came into payment on the day after the old service ceased, and

(b) it was payable at an annual rate equal to that actual annual rate,

(c) it was eligible to be increased under that Act.

     H.6 General disregard of effect of abatement In Part E of these Rules references to the amount of the pension payable to a person are to be taken as references to the amount so payable apart from any reduction falling to be made under this Part.

(a) that he is entitled to it, or

(b) in the case of a benefit under rule E.8, that the person on whose behalf it is payable to him is so entitled.

    (2) If a declaration under paragraph (1) in respect of a pension is made after such a specified time, the person is only entitled to payment of the pension in respect of the period beginning with that time and ending with the date on which he makes the declaration if - 

(a) in a case where that period does not exceed one year, the Scheme administrator consents, and

(b) in a case where that period exceeds one year, the Secretary of State consents.

    (3) A declaration under paragraph (1) must be made in writing in such form as the Secretary of State requires and submitted to the Scheme administrator.

    (4) Pensions payable under the Scheme are payable by monthly instalments in arrears.

    (5) If - 

(a) according to any rule of the Scheme a benefit becomes payable at a specified time, but

(b) as a result of paragraph (1) it becomes payable at a later time, being a time more than one month after that specified time,

the person to whom it is payable is entitled to interest on the amount that becomes so payable.

    (6) The interest is payable in respect of the period beginning with the specified time and ending with that later time, at the sterling 3 month London interbank offered rate, with yearly rests.

    (7) This rule is disregarded in determining for the purposes of any other provision of these Rules whether a person is entitled to a pension at any time or whether a pension becomes payable immediately.

     J.2 False statements etc. about ill-health

    (1) This rule applies where - 

(a) a pension under D.5, D.6 or D.7 has been awarded to a member, and

(b) subsequently it appears to the Secretary of State that the member made a false declaration about his health or deliberately suppressed a material fact that was relevant to the award.

    (2) The Secretary of State may - 

(a) cease paying the pension,

(b) withhold the whole or part of the pension, or

(c) recover any payment made under the award.

(a) are active members of the AFPS 1975 immediately before 6th April 2005, and

(b) opt to become members of the Scheme on the basis set out in this Part.

    (2) In these Rules a member of the Scheme to whom this Part applies is referred to as an "AFPS 1975 transferee".

    (3) If an AFPS 1975 transferee becomes a re-employed active member, this Part does not apply in relation to his service after he does so unless the break in service immediately before such re-employment does not exceed six months.

     K.2 Options for AFPS 1975 members to join the Scheme under Part K

    (1) A person who - 

(a) would be eligible to join the Scheme by virtue of his service if he met the condition in rule B.1(b)(i) (which requires that the person's service begins on or after 6th April 2005), and

(b) immediately before that date was an active member of the AFPS 1975 by virtue of that service,

may opt to join the Scheme under the terms of this Part, unless he has been re-employed in the service by virtue of which he is eligible to belong to the Scheme on or after reaching pension age.

    (2) The option may only be exercised by giving notice in writing to the Scheme administrator in such form as the Secretary of State requires on or before 31st March 2006 or such later date as the Secretary of State may determine is appropriate in the case of any particular member.

    (3) For this purpose the notice is treated as having been given on the date on which it is received by the Scheme administrator.

    (4) The option has effect on 6th April 2006 and is irrevocable unless paragraph (5) applies.

    (5) This paragraph applies if the Secretary of State gives notice in writing to the person stating that the person may revoke his option by giving notice in writing that he wishes to do so to the Secretary of State before the expiry of the period of 3 months beginning with the date on which the notice is given by the Secretary of State.

    (6) Where a person revokes his option in accordance with paragraph (5), these Rules apply as if he had never opted to join the Scheme.

(a) a period of qualifying service equal in length to the period of qualifying service which the member was entitled to count under the AFPS 1975 (but not exceeding 35 years), and

(b) a period of reckonable service equal in length to the period of reckonable service which the member was entitled to count under the AFPS 1975 (but not exceeding 35 years).

This is subject to rules K.4 (treatment of added years: contributions paid before 6th April 2006) and K.5 (treatment of preserved awards).

    (2) For the purposes of paragraph (1) the qualifying and reckonable service that the member was entitled to count under the AFPS 1975 is taken to include the qualifying and reckonable service that the member would be entitled to count under the AFPS 1975 if he were entitled to count - 

(a) any service before the age of 21 as an officer, and

(b) any service before the age of 18 otherwise than as an officer.

     K.4 Treatment of added years: contributions paid before 6th April 2006 For the purposes of rule K.3, the reckonable service of a member who - 

(a) has bought added years of pension credit under the AFPS 1975, or

(b) is buying them under a contract which is in force on 5th April 2006,

is calculated as if he were leaving the AFPS 1975 on that date.

     K.5 Treatment of preserved awards

    (1) This rule applies where a member who is an AFPS 1975 transferee - 

(a) has been awarded a preserved pension and lump sum under the terms of the AFPS 1975 in respect of service which ended before the beginning of the service which is current on 5th April 2006, and

(b) neither the pension nor the lump sum has been brought into payment by that date.

For this purpose, a pension is treated as being in payment if it would be apart from abatement under the AFPS 1975.

    (2) Rule K.3 does not apply to the qualifying and reckonable service in respect of which the member was awarded the preserved pension, unless when the member exercises the option under rule K.2(1) (option to join the Scheme under the terms of this Part) he opts for it to do so.

    (3) If the member has been awarded two or more preserved pensions in respect of which paragraph (1) applies, he may only exercise the option under paragraph (2) in respect of the latest award.

    (4) An option under paragraph (2) may only be exercised by giving notice in writing to the Scheme administrator in such form as the Secretary of State requires.

     K.6 Transfers in: transitional provision

    (1) This rule applies where - 

(a) a member applied in writing for the AFPS 1975 to accept a transfer value payment in respect of him,

(b) the member is an AFPS 1975 transferee, and

(c) the transfer value payment is received on or after 6th April 2006.

    (2) Part F applies as if the member had applied under rule F.7 for the Scheme to accept the payment.

     K.7 Pension debit members

    (1) This rule applies where - 

(a) on becoming a member of the Scheme an AFPS 1975 transferee is a pension debit member, and

(b) in the opinion of the Scheme administrator it is necessary for the purpose of giving effect to the pension sharing order to which the member's rights are subject for some or all of the benefits to which the pension member is entitled under the Scheme to be taken in a different form from that in which he would otherwise be entitled to take them.

    (2) The Scheme administrator may, after taking advice from the Scheme actuary, make such modifications to the member's rights as to the form of those benefits as he considers necessary for that purpose.

     K.8 Disapplication of rule E.6 Rule E.6 (reduction in pensions under rules E.1 and E.2 in cases of wide age disparity) does not apply to a pension payable under rule E.1 in the case of a member who was an AFPS 1975 transferee if the member had been the spouse or civil partner of the person to whom the pension is payable continuously since before 6th April 2006 until the member's death.

    " (5) This rule is subject to rule A.5A (Inland Revenue restrictions on final pensionable earnings)."

     2. At the end of rule A.5 insert - 

    " (3) This rule is subject to rule A.5A (Inland Revenue restrictions on final pensionable earnings)."

     3. After rule A.5 insert - 

     " A.5A Inland Revenue restrictions on final pensionable earnings

    (1) In the case of a Class A member, if the calculation under rule A.4(1) produces an amount exceeding the permitted maximum, the excess is disregarded except to the extent that paragraph (2) applies.

    (2) If the member is a Class A member with reckonable service within rule A.8(1)(d) or (f) (reckonable service the member is entitled to count as a result of a transfer in or his being an AFPS 1975 transferee), and either - 


(a) paragraph 20 of Schedule 6 to the Finance Act 1989 did not apply to the member when he was a member of the scheme from which the transfer was accepted or, as the case may be, the AFPS 1975 and neither did any equivalent scheme provision, or

(b) that paragraph applied with the modification made by paragraph 5 of the Retirement Benefits Schemes (Continuation of Rights etc.) Regulations 1990 as respects benefits derived from service under another scheme ("earlier service") or a scheme provision made equivalent provision,



paragraph (1) does not apply in calculating any benefit to the extent that the benefit is calculated by reference to the reckonable service within rule A.8(1)(d) or, as the case may be, rule A.8(1)(f), or (in either case) so much of that reckonable service as is earlier service.

    (3) For the purposes of these Rules - 



(a) a member is a Class A member unless - 


(i) he is to be treated as not being such a member under an agreement with the Commissioners of the Board of Inland Revenue because immediately before joining the Scheme he was an active member of another occupational pension scheme under the rules of which his benefits were not limited by reference to the permitted maximum,

(ii) he has continued to be an active member of the Scheme since he joined it or meets conditions A to C or condition D in relation to any period during which he was not such a member, and

(iii) he has elected not to be treated as a Class A member, and



(b) "permitted maximum", in relation to a member, means the amount defined as such in section 590C(2) of the Income and Corporation Taxes Act 1988 for the tax year in which the member's active membership period ends.



    (4) Condition A is that during the period the person was on secondment or a posting to another employer.

    (5) Condition B is that at the beginning of the period the person had a definite expectation that he would become an active member again when the secondment or posting ended.

    (6) Condition C is that the person became an active member again at the end of the period.

    (7) Condition D is that the period did not exceed one month and at the end of it he immediately became an active member again.".

     4. For rule B.2 substitute - 

     " B.2 Persons with other pension arrangements

    (1) A person is not eligible to be an active member of the Scheme in respect of his service if - 


(a) he belongs to the AFPS 1975, or

(b) subject to paragraph (2), he has a stakeholder pension scheme or a personal pension scheme,



in respect of that service.

    (2) A stakeholder pension scheme or a personal pension scheme is disregarded for the purposes of this rule during any tax year in which the member is eligible to contribute to it and to the Scheme in accordance with section 632B of the Income and Corporation Taxes Act 1988.".

     5. In rule C.1 after paragraph (7) insert - 

    " (8) The contributions to be made under this rule may not exceed the maximum permitted under rule C.8 (Inland Revenue limits on contributions), and the benefits to which a member may become entitled as a result of making the payments may not exceed or differ from those that may be provided as a result of the making of such contributions by a retirement benefits scheme meeting the requirements for approval under section 592 of the Income and Corporation Taxes Act 1988.".

     6. In rule C.3(2)(b) after "C.1(6)" insert "or C.8".

     7. At the end of rule C.4(3) insert - 

" This is subject to rule C.8 (Inland Revenue limits on contributions).".

     8. For rule C.7 substitute - 

     " C.7 Repayment of contributions

    (1) The contributions made by a member under this Part are not repayable in any circumstances except where paragraph (2) or (4) applies.

    (2) This paragraph applies where - 


(a) an active member who is not a pensioner member ceases to be an active member of the Scheme and is not entitled to the immediate payment of a pension,

(b) he does not fall within rule D.2(1)(a) or (b), and

(c) he has not required a payment to be made in respect of him under Part F (transfers).



    (3) Where paragraph (2) applies, the former member is entitled to be paid an amount equal to the sum of the contributions made by him under this Part, less - 



(a) the amount of any contributions equivalent premium paid in respect of the member, and

(b) an amount equal to the income tax payable under section 598(2) of the Income and Corporation Taxes Act 1988 by virtue of the repayment.



    (4) This paragraph applies where the contributions paid by a member under rule C.1 exceed those which may be paid.

    (5) Where paragraph (4) applies, the member is entitled to be paid an amount equal to the excess, less an amount equal to the income tax payable under section 599A of the Income and Corporation Taxes Act 1988 by virtue of the repayment, together with compound interest.

    (6) In this rule "compound interest" means interest at the sterling 3 month London interbank offered rate, with yearly rests.".

     9. After rule C.7 insert - 

     " C.8 Inland Revenue limits on contributions The contributions made under this Part in any tax year in respect of a member's pensionable earnings must not exceed the amount in respect of which the member is allowed a deduction for that year under section 594 of the Income and Corporation Taxes Act 1988 (tax relief for contributions to exempt statutory schemes).

     C.9 Scheme administrator's duties where contributions made to AVC schemes etc. The Scheme administrator must comply with the requirements - 


(a) of regulation 5 of the Retirement Benefit Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993, and

(b) so far as they concern a main scheme (as defined in regulation 2(1) of those Regulations), of regulation 6 of those Regulations.".

     10. In rule D.11 after paragraph (5) insert - 

    " (6) No deduction is to be made from any amount paid under this rule in respect of tax chargeable in respect of it under section 599 of the Income and Corporation Taxes Act 1988, and any such tax is to be paid by the Secretary of State.".

     11. After rule D.17 insert - 

     " D.18 Inland Revenue limits on lump sums

    (1) The lump sum paid to member under this Part may not exceed - 


(a) in the case of a Class A member other than a pension debit member, the amount of the annual pension multiplied by 2.25 or, if it is greater, three-eightieths of the member's final pensionable earnings, multiplied by the lesser of - 


(i) the member's reckonable service in years, and

(ii) 40 years, and



(b) in the case of a pension debit member, the amount of the annual pension multiplied by 3.



    (2) In paragraph (1)(a) "the amount of the annual pension" means the amount of the annual pension to which the member would be entitled under this Part (calculated as at the time payment is first due) on the assumption that - 



(a) the member had exercised the option under rule D.10 in respect of the whole of the lump sum, and

(b) no allocation was made under rule D.14.



    (3) In paragraph (1)(b) "the amount of the annual pension" means the amount of the annual pension to which the member would be entitled under this Part (calculated as at the time payment is first due) on the assumption that - 



(a) no allocation was made under rule D.14, and

(b) if, in the relevant tax year the member met the modest earnings test, the pension debit was disregarded.



    (4) For the purposes of paragraph (3) - 



(a) a member meets the modest earnings test in a tax year if in that year the member's pensionable earnings to which section 203 of the Income and Corporation Taxes Act 1988 (pay as you earn) applied do not exceed one quarter of the permitted maximum, as defined in section 590C(2) of that Act, for that year, and

(b) "the relevant tax year" means the tax year immediately before that in which the marriage in relation to which the pension sharing order in question was made ended.



     D.19 Inland Revenue limits: general

    (1) Notwithstanding any other provision of the Scheme, no benefits may be paid to a member under this Part if or to the extent that their payment would prejudice the registration of the Scheme as a relevant statutory scheme under section 611A(1)(b) of the Income and Corporation Taxes Act 1988.

    (2) If the payment of benefits is restricted by virtue of paragraph (1) but the manner in which the restriction affects any particular benefit or benefits is not apparent from the rules relating to the restriction, the Secretary of State may determine the manner in which the restriction is to be given effect.".

     12.  - (1) Rule E.16 is amended as follows - 

    (2) In paragraph (1) for the second sentence substitute - 

" This is subject to paragraph (2) to (7).".

    (3) After paragraph (5) insert - 

    " (6) The amount of the lump sum is restricted as mentioned in paragraph (7) in the case of an active member - 


(a) who is a retained rights member, and

(b) whose pensionable earnings in the first year in which he is an active member equalled or exceeded one quarter of the permitted maximum, as defined in section 590C(2) of the Income and Corporation Taxes Act 1988, for the tax year in which that first year ends.



    (7) The amount of the lump sum must not exceed the greater of - 



(a) four times the member's final pensionable earnings, less the value of his retained benefits, and

(b) £5,000.



    (8) A person is a retained rights member for the purposes of these Rules if he is entitled to, or has received, relevant benefits (as defined in section 611(1) of the Income and Corporation Taxes Act 1988) accrued under - 



(a) an approved scheme (as defined in section 612 of that Act),

(b) a relevant statutory scheme (as defined in section 611A of that Act),

(c) a fund to which section 608 of that Act applies,

(d) a retirement benefits scheme (as defined in section 611 of that Act) accepted by the Commissioners of the Board of Inland Revenue as a scheme which corresponds as mentioned in section 596(2)(b) of that Act,

(e) a contract or trust scheme approved under section 620 of that Act, or

(f) a personal pension scheme.



    (9) In these Rules "retained benefits", in relation to a person who is a retained rights member, means the benefits by virtue of which he is such a member.

    (10) For the purposes of paragraph (8) - 



(a) benefits that accrued under the Scheme are disregarded, and

(b) relevant benefits are disregarded if - 


(i) the member's pensionable earnings in the first year in which he is an active member do not exceed one quarter of the permitted maximum, as defined in section 590C(2) of that Act, for the tax year in which that first year ends, or

(ii) in the case of lump sum benefits, they do not exceed £2,500.".

     13. In rule E.22 after paragraph (6) insert - 

    " (7) For the purposes of making any calculation required by this rule, rule E.29 (Inland Revenue limits: pensions) is disregarded, (but without prejudice to the application of that rule in determining the extent to which any amount payable under this Part apart from that rule is actually paid).".

     14. After rule E.28 insert - 

     " E.29 Inland Revenue limits: pensions

    (1) No annual pension payable under this Part may exceed two thirds of the Revenue maximum.

    (2) Where two or more pensions are payable under this Part in respect of a deceased member, the aggregate annual amount of them may not exceed the Revenue maximum.

    (3) In paragraph (1) "the Revenue maximum" means - 


(a) in the case of a deceased active or deferred member, the amount of the annual pension that would have been payable to the member if on the date of death he had become entitled to a pension under rule D.5 (early payment of benefits: active members with permanent serious ill-health) and had exercised the option under rule D.10 (option to exchange lump sum for pension) in respect of the whole of the lump sum to which he would otherwise have been entitled,

(b) in the case of a deceased pensioner member who exercised that option in respect of the whole of the lump sum to which he would otherwise have been entitled, the amount of the annual pension to which he was entitled at the date of death, and

(c) in the case of a deceased pensioner member who did not exercise that option in respect of the whole of the lump sum to which he would otherwise have been entitled, the amount of the annual pension to which he would have been entitled at the date of death if he had done so.



This is subject to paragraphs (4) and (6).

    (4) In the case of a pension debit member, the amount of the annual pension is determined without taking the pension debit into account if in the relevant tax year the member met the modest earnings test.

    (5) For the purposes of paragraph (4) - 



(a) a member meets the modest earnings test in a tax year if in that year - 


(i) in the case of a tax year before 2003-04, the member's pensionable earnings to which section 203 of the Income and Corporation Taxes Act 1988 (PAYE) applied, and

(ii) in the case of a tax year after 2002-03, the member's pensionable earnings that are PAYE income for the year (within the meaning of section 683 of the Income Tax (Earnings and Pensions) Act 2003),



do not exceed one quarter of the permitted maximum, as defined in section 590C(2) of the Income and Corporation Taxes Act 1988, for that year, and
(b) "the relevant tax year" means the tax year immediately before that in which the marriage in relation to which the pension sharing order in question was made ended.



    (6) If the member was a retained rights member, the value of his retained benefits is disregarded in calculating the Revenue maximum.

    (7) If, apart from this paragraph, the aggregate annual amount of two or more pensions payable under this Part in respect of a deceased member would exceed the Revenue maximum, the annual amount of each of them is to be reduced by - 



E×P

AP

where - 
E is the amount of the excess,
P is the annual amount of the pension in question, and
AP is the aggregate annual amount of the pensions.

     E.30 Inland Revenue limits: general

    (1) Notwithstanding any other provision of the Scheme, no benefits may be paid under this Part to any person in respect of a member if or to the extent that their payment would prejudice the registration of the Scheme as a relevant statutory scheme under section 611A(1)(b) of the Income and Corporation Taxes Act 1988.

    (2) If the payment of benefits is restricted by virtue of paragraph (1) but the manner in which the restriction affects any particular benefit or benefits is not apparent from the rules relating to the restriction, the Secretary of State may determine the manner in which the restriction is to be given effect.".

     15.  - (1) Rule J.8 is amended as follows - 

    (2) In paragraph (5) in the definition of "the commutation requirements" for paragraph (d) substitute - 

" (d) by the Commissioners of the Board of Inland Revenue in connection with the approval of retirement benefit schemes under Part 14 of the Income and Corporation Taxes Act 1988.".

    (3) After paragraph (5) insert - 

    " (6) A deduction is to be made from any amount paid under this rule for the amount of tax chargeable in respect of it under section 599 of the Income and Corporation Taxes Act 1988.

This is subject to paragraph (7).

    (7) If - 


(a) rule D.17 (guaranteed minimum pensions etc.), or

(b) rule E.28 (guaranteed minimum pensions for surviving spouses), applies to the commuted pension, a deduction may only be made under paragraph (6) in respect of tax on so much of the amount paid under this rule as exceeds the guaranteed minimum.".