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United Kingdom Statutory Instruments


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STATUTORY INSTRUMENTS


2005 No. 859

DEFENCE

The Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 2005

  Made 21st March 2005 
  Laid before Parliament 23rd March 2005 
  Coming into force 14th April 2005 


ARRANGEMENT OF REGULATIONS


PART 1

PRELIMINARY
1. Citation and commencement
2. General interpretation

PART 2

AWARDS TO RESERVISTS
3. Reservist's award
4. Allowable expenses claim
5. Pensions payments

PART 3

AWARDS TO EMPLOYERS
6. Employer's awards
7. Training award

PART 4

MAKING A CLAIM
8. Time limits for making a claim
9. Person to whom claims should be made
10. Claimant's personal representative
11. Information and documentation to be furnished in relation to claims
12. Determination and payment of claims
13. Rejection of claims for non-compliance with the Regulations
14. Additional powers of adjudication officers
15. Withdrawal of a claim

PART 5

REVOCATION AND TRANSITIONAL ARRANGEMENTS
16. Revocation and transitional arrangements

  SCHEDULE 1 INFORMATION AND DOCUMENTATION TO BE PROVIDED BY A RESERVIST ON MAKING A CLAIM

  SCHEDULE 2 INFORMATION AND DOCUMENTATION TO BE PROVIDED BY AN EMPLOYER ON MAKING A CLAIM

  SCHEDULE 3 PERSON TO WHOM CLAIMS SHALL BE MADE

The Secretary of State, in exercise of the powers conferred upon him by sections 83 and 84 of the Reserve Forces Act 1996[
1] and after consultation by him in accordance with section 85(3) of that Act, hereby makes the following Regulations:



PART 1

PRELIMINARY

Citation and commencement
     1. These Regulations may be cited as the Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 2005 and shall come into force on the 14th April 2005.

General interpretation
    
2.  - (1) In these Regulations - 

but does not include - 

a person who is self-employed;

but shall not include any period in which the reservist is serving a term of imprisonment or detention under the sentence of a court-martial or a court of law in the British Islands or any colony;

    (2) Where a person is performing relevant service and the date on which he is entitled to be released or discharged has been postponed under sections 45(6), 53(3), (7) or (11), 57(3) or (7), 61 or 69(3) or (6) (as the case may be) of the 1996 Act, the termination of relevant service means the day on which the reservist actually ceases the relevant service after the period of extension, and not the date on which he would otherwise have been entitled to be released or discharged from that service.



PART 2

AWARDS TO RESERVISTS

Reservist's award
     3.  - (1) A reservist performing relevant service shall, subject to fulfilment to an adjudication officer's satisfaction of the requirement to furnish information or documentation under paragraph (1) of regulation 11, be entitled to claim a reservist's award in respect of the relevant period.

    (2) For the purposes of these Regulations the amount of a reservist's award shall (subject to the cap) be - 

    (3) In paragraph (2) the daily cost of providing any benefits within this paragraph means the average daily cost that an adjudication officer is satisfied the reservist will incur in making - 

    (4) In paragraph (2) the daily cost of providing certain benefits within this paragraph shall mean, where immediately before the relevant date the reservist had a company car, and - 

    (5) For the purposes of this regulation the cap is - 

less his current service pay.

    (6) The reservist's award shall be calculated as a daily rate and shall be paid monthly in arrears to the reservist on the last working day of every calendar month. The amount payable each month shall be the daily rate awarded multiplied by the numbers of days in the calendar month on which the reservist performed relevant service.

Allowable expenses claim
    
4.  - (1) A reservist performing relevant service shall, subject to fulfilment to an adjudication officer's satisfaction of the requirement to furnish information or documentation under paragraph (2) of regulation 11, be entitled to make a claim in respect of certain allowable expenses.

    (2) For the purposes of this regulation allowable expenses means those expenses specified below which are incurred by the reservist as a result of his relevant service and which will cease at the end of the relevant period. Those allowable expenses are - 

    (3) A claim under this regulation may be for allowable expenses which have been, or will be, paid. In the case of an allowable expense which will be paid, an adjudication officer may agree to make monthly payments under this regulation subject to evidence being provided subsequently that the amounts have been paid by the reservist.

Pensions payments
    
5.  - (1) If the reservist is a member of an occupational pension scheme ("the pension scheme") into which his employer made contributions for the benefit of the reservist, his spouse or partner or any dependants, and such contributions are suspended by his employer during the relevant period - 

he shall be entitled to apply to an adjudication officer for a continuation of those contributions which his employer would have made into his pension scheme.

    (2) When making a claim under this regulation the reservist must provide the documentation and information specified in paragraph (3) of regulation 11.

    (3) An adjudication officer may direct that - 

    (4) The Secretary of State may by written notice require any person to whom such payments have been made under this regulation to provide to him, or such other person as may be designated by him, information regarding the use made of that money.

    (5) This regulation shall only apply where the relevant date of the reservist falls on or after the 14th April 2005.



PART 3

AWARDS TO EMPLOYERS

Employer's awards
    
6.  - (1) An employer shall, subject to fulfilment to an adjudication officer's satisfaction of the requirement to furnish information or documentation under paragraph (4) of regulation 11, be entitled to claim an award under this regulation in respect of the relevant period.

    (2) For the purposes of these Regulations the amount of an employer's award shall (subject to the cap) be the amount by which the replacement costs incurred by the employer exceed the relevant earnings of the reservist.

    (3) For the purposes of this regulation the cap is £110 per day.

    (4) In addition an employer may claim the amount of certain non-recurring costs that he incurs in replacing the reservist. Those costs are - 

    (5) The employer's award specified in paragraph (2) shall be calculated as a daily rate and shall be paid monthly in arrears to the employer on the last working day of every calendar month. The amount payable each month shall be the daily rate awarded multiplied by the numbers of days in the calendar month on which the reservist is absent by virtue of performing relevant service.

Training award
    
7.  - (1) An employer shall be able to reclaim the cost of training for the reservist where an adjudication officer is satisfied that as a result of his relevant service a reservist needs to undertake such training for the performance of his employment.

    (2) When claiming an award under this regulation the employer must provide the necessary documentation specified in paragraph (5) of regulation 11.



PART 4

MAKING A CLAIM

Time limits for making a claim
    
8.  - (1) A claim under these Regulations may not be made before the relevant date.

    (2) A claim for an award other than a training award shall not be made more than 4 weeks after the end of the relevant period unless an adjudication officer agrees to an extended period.

    (3) A claim for a training award must be made within 8 weeks of the reservist completing the relevant training, and, subject to paragraph (4), the relevant training must be completed within 6 months of the reservist's return to employment following the relevant period ("the initial 6 months").

    (4) If the relevant training is not available within the initial 6 months, such training - 

Person to whom claims should be made
    
9. A claim shall be made to a person specified in Schedule 3.

Claimant's personal representative
    
10.  - (1) Any steps required to be taken by a claimant under this Part may, except for claims to which paragraph (2) applies, be taken by any person having written authority from the claimant to do so, if the claimant has supplied a copy of that authority to an adjudication officer.

    (2) In the event of the death of the claimant or of a person who, if he had survived could have been a claimant, a claim may be continued or made as the case may be, by his personal representatives for the benefit of his estate.

Information and documentation to be furnished in relation to claims
    
11.  - (1) When making a claim under regulation 3 a reservist must supply the information specified in Schedule 1 to an adjudication officer.

    (2) When making a claim under regulation 4 a reservist must supply the information set out in Schedule 1 except those items specified in paragraphs (1)(e), (f), (g), (h), (i), (j) and (l).

    (3) When making a claim under regulation 5 a reservist must supply the information set out in Schedule 1 except those items specified in paragraphs (1)(e), (f), (g), (h) and (j) to an adjudication officer together with - 

    (4) When making a claim under regulation 6 an employer must supply the information specified in paragraph (1) of Schedule 2 to an adjudication officer.

    (5) When making a claim under regulation 7 an employer must supply the information specified in paragraphs (1)(a) to (c) of Schedule 2 to an adjudication officer together with - 

    (6) An adjudication officer may require a claimant to furnish such other information or documents in connection with a claim as an adjudication officer may at any time reasonably require.

    (7) A person who has furnished information under this regulation shall notify an adjudication officer of any - 

which might materially affect the claim, no later than 14 days after the inaccuracy, change or event comes to that person's attention. The provision of such information shall entitle an adjudication officer to review the original determination in accordance with paragraph 1(d) of regulation 14.

Determination and payment of claims
    
12.  - (1) An adjudication officer shall consider a claim promptly and in accordance with the relevant provisions of these Regulations.

    (2) Where that determination takes into account any estimated cost or expense or any future event, it shall be a preliminary determination subject to confirmation when evidence of the actual amount or the occurrence of the event is provided.

    (3) As soon as reasonably practicable after making his determination an adjudication officer shall provide to the claimant a written notification of his determination containing a statement - 

Rejection of claims for non-compliance with the Regulations
    
13. An adjudication officer may reject a claim if the claimant has failed without reasonable excuse to comply with - 

Additional powers of adjudication officers
    
14.  - (1) An adjudication officer may - 

    (2) If an adjudication officer proposes to exercise his power under paragraph (1)(d), he shall provide written notice of his intention to do so to the claimant as soon as reasonably practicable.

Withdrawal of a claim
    
15. A claimant may withdraw a claim, or any part of a claim, at any time by providing written notice of such to an adjudication officer.



PART 5

REVOCATION AND TRANSITIONAL ARRANGEMENTS

Revocation and transitional arrangements
    
16.  - (1) Save to the extent set down in this regulation, the 1997 Regulations are revoked.

    (2) The 1997 Regulations shall remain in force in respect of any claim for an award made under those Regulations before the 14th April 2005.

    (3) Where a person was entitled before the 14th April 2005 to make a claim under the 1997 Regulations, but on that date has not yet done so, he may make a claim under those Regulations if the relevant time limits under those Regulations have not expired.

    (4) Subject to paragraph (5), reservists or employers of reservists who are in relevant service on and immediately before the 14th April 2005 are not precluded from claiming an award under these Regulations solely because they have claimed, or have been made, an award under the 1997 Regulations in respect of their current period of relevant service within the meaning of those Regulations.

    (5) Any award claimed or made under the 1997 Regulations in respect of a period which includes relevant service under these Regulations shall be taken into account when calculating the amount of any award under these Regulations in so far as it appears to an adjudication officer that both awards relate essentially to the same period or amount.


Ivor Caplin MP
Under Secretary of State Ministry of Defence

21st March 2005



SCHEDULE 1
Regulations 3, 4, 5, 11(1) and (2) and (3)


INFORMATION AND DOCUMENTATION TO BE PROVIDED BY A RESERVIST ON MAKING A CLAIM


     1. On making a claim a reservist shall provide to an adjudication officer the following information and documents - 



SCHEDULE 2
Regulation 6, 7, 11(4) and (5)


INFORMATION AND DOCUMENTATION TO BE PROVIDED BY AN EMPLOYER ON MAKING A CLAIM


     1. On making a claim under regulation 6 an employer shall provide to an adjudication officer the following information or documents-



SCHEDULE 3
Regulation 9


PERSON TO WHOM CLAIMS SHALL BE MADE


     1. Any claim under these Regulations shall be made to - 



EXPLANATORY NOTE

(This note is not part of the Order)


These Regulations give effect to a new scheme for providing financial assistance to reservists and employers who suffer financial loss as a result of the mobilisation of reservists for permanent service in the armed forces. A reservist who is self-employed may claim in the capacity of a reservist, an employer or both.

A Regulatory Impact Assessment has been produced in relation to these Regulations: Changes to the Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 1997 Statutory Instrument 1997 No. 309, published on the 24th January 2005. In addition a consultation paper of July 2004 (Financial Assistance for Reservists and Employers: A Discussion Document), is available from the Directorate of Reserve Forces and Cadets Secretariat, Ministry of Defence, Main Building, Horse Guards Avenue, Whitehall, London SW1A 2HB or on
http://www.financialassistance.mod.uk/files/pdf/Discussion_Document.pdf

Under regulation 3 a reservist will, on production of the documentation prescribed in paragraph (1) of regulation 11 be entitled to claim an award, called a "reservist's award". This is to mitigate certain financial losses during the reservist's relevant service, namely when his service pay is lower than his lost civilian pay and the cost to him of providing certain benefits which his employer had provided before his mobilisation. The amount awarded may not exceed the cap less the reservist's service pay. The reservist's award is capped at £548 per day (equivalent to £200,000 per annum), save in respect of accredited medical consultants who are serving with the Defence Medical Services as medical consultants for whom the cap is £822 per day (equivalent to £300,000 per annum), less the current service pay of the reservist. The reservist's award is paid in arrears at the end of each calendar month.

Regulation 3 also sets out the benefits, the cost of re-provision of which by the reservist during the relevant period is to be included in the reservist's award. The reservist may also receive payment for the loss of a company car that was at the disposal of his spouse or partner or any dependants, where there is no other car available to them. This payment is set at a flat rate of £10.70 per day.

Under regulation 4 a reservist may claim an "allowable expenses award". Subject to the reservist furnishing an adjudication officer with the documentation prescribed in paragraph (2) of regulation 11, he shall be entitled to claim an uncapped award in respect of certain allowable expenses that have been incurred as a result of his relevant service and will cease at the end of the relevant period.

Regulation 5 deals with a reservist who is a member of an occupational pension scheme. If the reservist's employer made regular payments into a pension scheme on behalf of the reservist, and these are suspended during the relevant service of the reservist, he may apply for a continuation of those payments if he elects to remain in that scheme and maintains such contributions as are required on his part. When making a claim under regulation 5 for continued pensions payments the reservist must supply the documentation required under paragraph (3) of regulation 11. A reservist may only claim under this regulation if his relevant date falls on or after the 14th April 2005.

By virtue of regulation 5 the person to whom such payments are made under regulation 5 for payment into a pension scheme must accept those payments as if they were contributions to the scheme by the employer, and must accept any contributions made by the reservist. Under this regulation the Secretary of State may also seek information verifying that such payments have been applied for the purposes for which they were awarded.

Under regulation 6 an employer is, on production of the documentation prescribed under paragraph (4) of regulation 11, entitled to claim an "employer's award" in respect of the replacement costs incurred as a result of the relevant service of the reservist, up to a cap of £110 per day. In addition to the cost of replacing the reservist, the employer may also claim certain non-recurring costs of replacing the reservist.

Under regulation 7 an employer will, on production of the documentation prescribed under paragraph (5) of regulation 11, be entitled to claim an award for certain training that the reservist undertakes upon his return from relevant service. The training award is in respect of such training as the reservist needs to undertake for the performance of his employment as a result of his relevant service.

Regulation 8 sets out the time limits within which claims for awards must be made. Regulation 9 details to whom such claims must be made, and Schedule 3 sets out the addresses to which claims should be sent.

By regulation 10 a person may act upon his behalf if he has been authorised to do so in writing by the claimant, and the claimant has supplied a copy of that authority to an adjudication officer. In the event of the death of the claimant, or person who could have been a claimant had he survived, his personal representative may bring or pursue a claim on behalf of his estate.

Regulation 11 prescribes by reference to Schedules 1 and 2 the documentation and information that is to be supplied to an adjudication officer in respect of the various claims.

Regulation 12 concerns the determination and payment of claims. It requires an adjudication officer to consider claims promptly, provides for preliminary determinations to be made, and requires an adjudication officer to provide a claimant with written notification of the determination of his claim, together with reasons for the decision, an explanation of how any award was calculated and a notice that an appeal route is available.

By regulation 13 an adjudication officer may reject a claim on the basis of non-compliance with the Regulations. This applies where a claimant, without reasonable excuse, has failed to comply with any of the requirements as to production of documentation and information in support of a claim or any of the prescribed time limits.

Regulation 14 specifies the additional powers of an adjudication officer, including his ability to make an interim award, process a claim despite all of the required information not being available, or to review a determination. Such a review may be carried out up until the beginning of any appeal hearing against that determination, or for a period of 6 years after a determination, whichever is the earlier.

Regulation 15 provides for the withdrawal of a claim by a claimant.

Regulation 16 deals with the saving provisions and transitional arrangements for replacing awards claimed under the Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 1997, SI 1997/309 ("the 1997 Regulations"). It allows a reservist or employer of a reservist who is in relevant service when these Regulations come in to force who before the 14th April 2005 has already claimed, or has had made, an award under the 1997 Regulations to continue to receive that award. It allows claimants to make claims under the 1997 Regulations that might have been made under those Regulations but have yet to be submitted, if any relevant time limits under those Regulations have not expired. It also permits reservists and employers of reservists who are performing relevant service when these Regulations come in to force to make new claims under these Regulations, in which case any award under the 1997 Regulations in respect of the same period must be taken into account.


Notes:

[1] 1996 c.14back

[2] SI 1997/309.back

[3] 1980 c.9back



ISBN 0 11 072642 1


 © Crown copyright 2005

Prepared 30 March 2005


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