uksi/2015/568 — The Armed Forces (Transitional Provisions) Pensions Regulations 2015

2015 No. 568 Public Service Pensions The Armed Forces (Transitional Provisions) Pensions Regulations 2015 Made 3rd March 2015 Laid before Parliament 9th March 2015 Coming into force 1st April 2015 The Secretary of State for Defence makes these Regulations in exercise of the powers conferred by sections 1(1) and (2)(h) , 2(1) , 3(1) to (4), and 18(5) of the Public Service Pensions Act 2013 . In accordance with section 3(5) of that Act, these Regulations are made with consent of the Treasury. PART 1 Preliminary Citation and commencement 1 1 These Regulations may be cited as the Armed Forces (Transitional Provisions) Pensions Regulations 2015. 2 These Regulations come into force on 1st April 2015. Interpretation 2 In these Regulations— “ AFPS 2015 ” means the scheme established by the Armed Forces Pension Regulations 2014 ; “ EDP 2015 ” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014 . PART 2 Amendments to the Armed Forces Pension Scheme 1975 Amendment of the Armed Forces Pensions Scheme 1975 3 The Armed Forces Pension Scheme 1975 (“the AFPS 1975 ”) is amended according to the provisions in this Part. Amendment of Rule A.1 in Schedule 1 to the AFPS 1975 4 In the Naval and Marine Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010 (the “Naval Pensions Order”), the Army Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Warrant 2010 (the “Army Pensions Warrant”) and the Air Force (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010 (the “Air Force Pensions Order”), rule A.1 in Schedule 1 (General interpretation) is amended by inserting at the appropriate places— a “AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ; ; and b “transition date” has the same meaning as specified in paragraph 1 of Schedule 3 to this Instrument; . Amendment of Rule H.1 in Schedule 1 to the AFPS 1975 5 In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.1 in Schedule 1 (Further pensionable service: general rule) is amended by inserting into paragraph (1) after “further pensionable service” the following: “including service by virtue of which the person is eligible for membership of the Armed Forces Pension Scheme 2015 (“AFPS 2015”)”. Amendment of Rule H.3 in Schedule 1 to the AFPS 1975 6 In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.3 in Schedule 1 (Service on lower pay) is amended by— a inserting into sub-paragraph (1)(a) after “further pensionable service” the following: “including service by virtue of which the person is eligible for membership of the AFPS 2015”; and b in paragraph (3), inserting after “A is the annual amount of the pension” the following: “which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension”. Amendment of Rule H.4 in Schedule 1 to the AFPS 1975 7 In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.4 in Schedule 1 (Reserve Service) is amended by— a inserting into paragraph (1) after “in reserve service” the following: “including service by virtue of which the person is eligible for membership of the AFPS 2015”; and b in paragraph (3), inserting after “A is the annual amount of the pension” the following: “which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension”. Insertion of new Schedules 8 The Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order are each amended by inserting, after Schedule 2 in each case, the new Schedule 3 contained in Schedule 1 to this Instrument, which has effect. PART 3 Amendments to the Armed Forces Pension Scheme 2005 Amendment of the Armed Forces Pensions Scheme 2005 9 The Armed Forces Pension Scheme 2005 is amended according to the provisions in this Part. Insertion of new article 5 into the AFPS Order 2005 10 The Armed Forces Pension Scheme Order 2005 (“the AFPS Order 2005”) is amended by inserting after article 4 the following new article— Closure of Scheme and transitional provision 5 1 Schedule 2 (Transitional Provision) has effect. 2 After 31st March 2015, the Scheme is closed to new members except where provided for in Schedule 2. . Amendment of rule A.1 in Schedule 1 to the AFPS Order 2005 11 Rule A.1(interpretation: general) in Schedule 1 to the AFPS Order 2005 is amended by inserting at the appropriate place— “AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ; ; Amendment of rule H.1 in Schedule 1 to the AFPS Order 2005 12 Rule H.1(application of Part H) in Schedule 1 to the AFPS Order 2005 is amended by— a in paragraph (1), after “pensioner member or deferred member of the Scheme” inserting “(whether or not they are also a pensioner member of the AFPS 2015)”; b after paragraph (1)(b), inserting— or c is re-engaged in service by virtue of which the person is eligible for membership of the AFPS 2015, ; c after paragraph (2)(b), omitting “and”; and d after paragraph (2)(c), inserting— and d where sub-paragraph (1)(c) applies, the “old service pension” includes any AFPS 2015 pension. . Insertion of new Schedule into the AFPS Order 2005 13 The AFPS Order 2005 is amended by the insertion after Schedule 1 to the new Schedule 2 contained in Schedule 2 to this Instrument . PART 4 Amendments to the Armed Forces Early Departure Payments Scheme 2005 Amendment of the Armed Forces Early Departure Payments Scheme 2005 14 The Armed Forces Early Departure Payments Scheme 2005 is amended according to the provisions in this Part. Amendment of article 3 (general interpretation) of the EDP Order 2005 15 Article 3 (general interpretation) of the Armed Forces Early Departure Payments Scheme Order 2005 (“the EDP Order 2005”) is amended by inserting at the appropriate places— a ““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 (“the AFP Regulations 2014 ”);”, b ““EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014;”, c ““transition date” in relation to a person with dual entitlement means 1st April 2015 or, if later, the day on which a person ceased to be a full protection member of the AFPS 2005 ;”, and d ““full protection member” has the meaning given in Part 2 of Schedule 2 to the Armed Forces Pension Scheme Order 2005 ;”. Insertion of new article 3A in the EDP Order 2005 16 The EDP Order 2005 is amended by, after article 3, inserting the following new article— Meaning of “a person with dual entitlement” 3A 1 For the purposes of the Scheme “a person with dual entitlement” means, subject to paragraph (2), a person who— a is a member of AFPS 2005 by virtue of their pensionable service under the AFPS 2005, or b was eligible to have been a member of AFPS 2005, and c is also a member of the AFPS 2015 by virtue of their pensionable service under the AFPS 2015, or d was eligible to have been a member of the AFPS 2015 on or after 1st April 2015. 2 A person is not a person with dual entitlement where the gap between the last day of service or eligibility at paragraph (1)(a) or (b) as the case requires and the first day of service or eligibility at paragraph (1)(c) or (d) as the case requires exceeds 5 years. . Amendment of article 4 (meaning of “relevant service”) of the EDP Order 2005 17 Article 4 of the EDP Order 2005 is amended by, after paragraph (3), inserting— 4 In the case of a person with dual entitlement, service on or after the transition date — a is relevant service for the purposes of article 6(1) and (5), b is relevant service for the purposes of article 8(4), c is relevant service for the purposes of article 10(4)(a) and (b), d is relevant service for the purposes of article 16(1)(b), e is not relevant service for the purposes of article 5(a). . Amendment of article 8 (eligibility for early departure payments) of the EDP Order 2005 18 Article 8(5) of the EDP Order 2005 is amended by— a omitting “or” at the end of sub-paragraph (a), b after paragraph (b) inserting— c regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), or d regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment). . Amendment of article 10 (amount of payments under article 9) of the EDP Order 2005 19 1 Article 10 of the EDP Order 2005 is amended by— a in paragraph (2) substituting “T” for “N”, b in paragraph (4)— i omitting “that the person is entitled to count for the purposes of Condition C in article 8(4), and”, ii inserting after sub-paragraph (a)— zb T is either— i the number of years’ relevant service, or ii for a person with dual entitlement, the number of years’ relevant service before the transition date, and , c in paragraph (5) inserting “or T , as appropriate,” after “ N ”, d inserting after paragraph (8)— 8A In the case of a person with dual entitlement— a service on or after the transition date is qualifying service for the purposes of regulation 10 of the EDP Regulations 2014 , b all payments made under this article and regulation 10 of the EDP 2015 are payable under the EDP Regulations 2014. . Amendment of article 12 (effect of rejoining armed forces or entering certain reserve forces service on article 9 award) of the EDP Order 2005 20 Article 12 of the EDP Order 2005 is amended by— a at the end of paragraph (4)(a) omitting “or”, b after paragraph (4)(b) inserting— c regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), or d regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment.) . Amendment of article 14 (entitlement to resettlement grants) of the EDP Order 2005 21 Article 14(1) of the EDP Order 2005 is amended by, after paragraph (d), inserting— and e is not entitled to a resettlement grant under regulation 16 of the EDP Regulations 2014. . Amendment of article 16 (lump sum awards: incapacity for armed forces service) of the EDP Order 2005 22 Article 16 of the EDP Order 2005 is amended by— a at the end of paragraph (1)(d)(iii) omitting “or”, b after paragraph (1)(d)(iv) inserting— v regulation 43 of the AFP Regulations 2014 (retirement on or after reaching normal pension age – active members), vi regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), vii regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment), or viii regulation 60 of the AFP Regulations 2014 (option for members in serious ill-health to exchange whole pension for lump sum). , c inserting at the beginning of paragraph (3) “Subject to paragraph (4A),”, d inserting at the beginning of paragraph (4) “Subject to paragraph (4A),”, e after paragraph (4) inserting— 4A In the case of a person with dual entitlement— a paragraphs (3) and (4) do not apply, b service on or after the transition date is only service for the purposes of regulation 20 of the EDP Regulations 2014, c the amount of the lump sum calculated under paragraph (2)— i is added to the amount of the lump sum calculated under regulation 20(1) of the EDP Regulations 2014 but ignoring regulation 20(1) sub-paragraphs (a) and (b), and ii sub-paragraphs (a) and (b) of regulation 20(1) are then applied, d all payments made under this article and regulation 20 of the EDP Regulations 2014 are payable under the EDP 2015. . f after paragraph (5) inserting— 6 For a person with dual entitlement this article is subject to regulation 58 (member’s request for review of ill-health awards) of the AFP Regulations 2014. . PART 5 Amendments to the Reserve Forces (Full-Time Reserve Service) Pension Scheme 1997 Amendment of the Reserve Forces (Full-Time Reserve Service) Pension Scheme 1997 23 The Reserve Forces (Full-Time Reserve Service Pension Scheme 1997 (“the FTRS 1997 ”) is amended according to the provisions in this Part. Amendment of Rule G.1 in Schedule 1 to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010 24 1 Rule G.1 (abatement of pensions on giving further service), in Schedule 1 to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010 “the FTRS Regulations”) is amended by inserting into paragraph (1), after “further pensionable service”, the following words: “including service by virtue of which the person is eligible for membership of the Armed Forces Pension Scheme 2015 (“AFPS 2015”) .”. 2 Rule G.1 is further amended at paragraph (2) by the insertion, after “the amount that the pension” the following words: “(which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension)”. Insertion of new regulation 3 into the FTRS Regulations 25 The FTRS Regulations are amended by inserting, after regulation 2, the following new regulation— Transitional provision 3 Schedule 2 (Transitional Provision) has effect. . Insertion of new Schedule into the FTRS Regulations 26 The FTRS Regulations are amended by the insertion of the new Schedule 2 contained in Schedule 3 to this Instrument. PART 6 Amendments to the Reserve Forces Non Regular Permanent Staff Pension Scheme Amendment of the Reserve Forces Non-Regular Permanent Staff (Pensions and Attributable Benefits Scheme) Regulations 2011 27 The Reserve Forces Non Regular Permanent Staff Pension Scheme is amended according to the provisions in this Part. Insertion of new regulation 3A 28 The Reserve Forces Non Regular Permanent Staff (Pension and Attributable Benefits Scheme) Regulations 2011 (“the NRPS Regulations 2011”) are amended by inserting, after regulation 3, the following new regulation— Transitional provision 3A 1 Schedule 3 (Transitional Provision) has effect. . Insertion of new Schedule into the NRPS Regulations 2011 29 The NRPS Regulations 2011 are amended by the insertion after Schedule 2 to the new Schedule 3 contained in Schedule 4 to this Instrument. PART 7 Amendments to the Reserve Forces Pension Scheme Regulations 2005 Amendment of the Reserve Forces Pension Scheme 2005 30 The Reserve Forces Pension Scheme 2005 is amended according to the provisions in this Part. Insertion of new article 5 into the Reserve Forces Pension Scheme Regulations 2005 31 The Reserve Forces Pension Scheme Regulations 2005(“the RFPS Regulations 2005”) are amended by inserting after regulation 2 the following new regulation— Closure of Scheme and transitional provision 3 1 Schedule 3 (Transitional Provision) has effect. 2 After 31st March 2015, the Scheme is closed to new members except where provided for in Schedule 3. . Amendment of rule A.1 in Schedule 1 to the RFPS Regulations 2005 32 Rule A.1(interpretation: general) in Schedule 1 to the RFPS Regulations 2005 is amended by inserting at the appropriate place— “AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ; . Amendment of Rule G.1 in Schedule 1 to the RFPS Regulations 2005 33 Rule G.1(application of Part G) in Schedule 1 to the RFPS Regulations 2005 is amended by— a in paragraph (1), after “pensioner member or deferred member of the Scheme” inserting “(whether or not they are also a pensioner member of the AFPS 2015)”; b after paragraph (1)(b), inserting— or c is re-engaged in service by virtue of which the person is eligible for membership of the AFPS 2015. ; c after paragraph (2) (b), omit “and”; and d after paragraph (2)(c), inserting— and d where sub-paragraph (1)(c) applies, the “old service pension” includes any AFPS 2015 pension. . Insertion of new Schedule into the RFPS Regulations 2005 34 The RFPS Regulations 2005 are amended by the insertion after Schedule 2 to the new Schedule 3 contained in Schedule 5 to this Instrument. PART 8 Amendments to the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010 Amendment of the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010 35 The Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010 (“AF(RRGES) (No.2) Order”) is amended according to the provisions in this Part. Amendment of article 2 (interpretation) of the AF(RRGES) (No.2) Order 36 Article 2 (interpretation) of the AF(RRGES)(No.2) Order is amended by inserting in the appropriate place— a ““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 ;”; b “transition member” means a person— a who is a member of the AFPS 1975 by virtue of their pensionable service under the AFPS 1975 before 1st April 2015; and b who is also a member of the AFPS 2015 by virtue of their pensionable service on and after 1st April 2015; . Amendment of article 27 (interpretation of Part 4) of the AF(RRGES) (No.2) Order 37 Article 27(2) of the AF(RRGES) (No.2) Order is amended by substituting— “ill-health pension” means— service invaliding retired pay or pension under the AFPS 1975, an ill-health pension under regulation 51 of the Armed Forces Pension Regulations 2014, or an ill-health pension under regulation 52 of the Armed Forces Pension Regulations 2014. . for— “ill-health pension” means service invaliding retired pay or pension under the AFPS 1975; . Amendment of article 30 (factors affecting the amount of commutable pension) of the AF(RRGES) (No.2) Order 38 Article 30 of the AF(RRGES) (No.2) Order is amended by inserting— a after “a person” in sub-paragraph (1) “,not including a transition member,”, b after sub-paragraph (1)— 1A Subject to article 32, the maximum lump sum which can be commuted by a transition member is calculated by application of the following formula— ( A − B ) x C ÷ D where— A in the case of an officer is the 34 year rate and in the case of someone who is not an officer is the 37 year rate; B is the aggregate lump sum from reckonable and pensionable service in AFPS 1975 and AFPS 2015; C is the number of years of AFPS 1975 service; and D is the total number of years of reckonable and pensionable service in AFPS 1975 and AFPS 2015. . Amendment of article 32 (misconduct) of the AF(RRGES) (No.2) Order 39 Article 32 of the AF(RRGES) (No.2) Order is amended by— a numbering the existing text as paragraph (1), b after “the 37 year rate.” inserting— 2 For a transition member the figure denoted by A in article 30(1A) is replaced by the appropriate amount from paragraph (1). . Amendment of article 35 (entitlement to resettlement grants) of the AF(RRGES) (No.2) Order 40 Article 35 of the AF(RRGES) (No.2) Order is amended by— a substituting for the existing paragraph (1)— 1 A person who ceases to be in service as a member of the armed forces is entitled to a lump sum payment if the person— a was, immediately before ceasing service, an active member of the AFPS 1975 or has opted-out; b has the relevant years of service; c is not entitled to the immediate payment of a pension under the AFPS 1975; d is not entitled to the immediate payment of a pension under the AFPS 2015; e is not entitled to an early departure payment under regulations 8 and 9 of the EDP 2015; and f either— i has not previously received a payment under the AFRGS 2010; or ii has made a repayment in respect of a payment previously received in sub-paragraph (i). b substituting in paragraph (2)— “relevant years of service” for— “relevant years of reckonable service” . c inserting after paragraph (5)— 6 Transition members are not entitled to a lump sum payment under regulation 16 of the EDP 2015. . PART 9 Amendments to the Armed Forces Pension Regulations 2014 and the Armed Forces Early Departure Payments Scheme Regulations 2014 Amendment of the Armed Forces Pension Regulations 2014 41 The Armed Forces Pension Regulations 2014 are amended by inserting into regulation 2 (interpretation) at the appropriate place— “AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014. . Amendment of the Armed Forces Early Departure Payments Scheme Regulations 2014 42 The Armed Forces Early Departure Payments Scheme Regulations 2014 are amended by inserting into regulation 2 (interpretation) at the appropriate place— “EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014. . Signatory Text Anna Soubry Minister of State Ministry of Defence 3rd March 2015 We approve David Evennett Harriet Baldwin Two of the Lords Commissioners of Her Majesty’s Treasury 27th February 2015 SCHEDULES SCHEDULE 1 Schedule to be inserted in the Armed Forces Pension Scheme 1975 Regulation 8 SCHEDULE 3 Transitional Provision for the Armed Forces Pension Scheme 1975 PART 1 Interpretation Interpretation 1 In this Schedule— “AFPS 1975” means the Armed Forces Pension Scheme 1975; “AFPS 2015” means the scheme established by the AFP Regulations 2014 ; “AFP Regulations 2014” means the Armed Forces Pension Regulations 2014; “continuity of service” in relation to a transition member has the meaning given in paragraph 2; “connected scheme” means another statutory pension scheme that is connected with the AFPS 1975 scheme within the meaning of section 4(6) of the 2013 Act ; “EDP Regulations 2014” means the Armed Forces Early Departure Payments Scheme Regulations 2014 ; “full protection member” has the meaning given in Part 2; “protection period” has the meaning given in paragraph 5; “scheme employment” has the meaning given in regulation 13 of the AFP Regulations 2014; “transition date” in relation to a transition member means 1st April 2015 or, if later, the day a person ceased to be a full protection member of the AFPS 1975; “transition member” means a person— who is a member of AFPS 1975 by virtue of their pensionable service under the AFPS 1975 before the transition date; and who is also a member of the AFPS 2015 by virtue of their pensionable service under that scheme; “the 2013 Act” means the Public Service Pensions Act 2013 ; “transfer payment” means payment of a transfer value; and “transfer value” has the meaning given in Part 8 of the AFP Regulations 2014. Meaning of “continuity of service” 2 1 For the purposes of this Schedule, a transition member (T) has continuity of service between pensionable service in the AFPS 1975 and pensionable service in the AFPS 2015 (“continuity of service”) unless T has a gap in service exceeding 5 years which— a begins on or before T’s transition date; and b ends on the day on which T becomes an active member of the AFPS 2015. 2 For the purpose of sub-paragraph (1), during the period starting with 1st April 2015, T is not on a gap in service while T is in service which is pensionable under an existing scheme, a public body pension scheme or a scheme under section 1 of the 2013 Act. Commencement of active membership of the AFPS 2015 for a transition member 3 1 A person who is a transition member on entering pensionable service under the AFPS 2015 who does not have continuity of service becomes an active member of the AFPS 2015 on the day the person begins pensionable service in a scheme employment. 2 A person who is a transition member on entering pensionable service under the AFPS 2015 who has continuity of service (T) becomes an active member of the AFPS 2015— a if T is in pensionable service in a scheme employment on T’s transition date, on that date; or b if T is not in pensionable service in a scheme employment on T’s transition date, on the date T enters pensionable service in a scheme employment after that date. PART 2 Exception to section 18(1) of the 2013 Act: full protection members of the AFPS 1975 Full protection members of the AFPS 1975 4 1 A person (P) is a full protection member of the AFPS 1975, where— a P was a conditional full protection member of the AFPS 1975 on 31st March 2015 and on 31st March 2012; and b unless P dies, P would reach age 55 on or before 1st April 2022. 2 For the purpose of this paragraph, a member is a conditional full protection member of the AFPS 1975 on a given date if on that date— a the member is in service in respect of which P is eligible to be a member of the AFPS 1975; b the member is a fixed protection member of the AFPS 1975; or c the member is in qualifying service under paragraph (c) of rule A.10(qualifying service) of the AFPS 1975. 3 P ceases to be a full protection member of the AFPS 1975 when P ceases to be in pensionable service under the AFPS 1975. Exception for full protection member during protection period 5 1 The protection period for a person (P) who is a full protection member of the AFPS 1975 is the period which— a begins on 1st April 2015; and b ends when P ceases to be a full protection member of the AFPS 1975. 2 During the protection period— a P is eligible to be in pensionable service under the AFPS 1975; b section 18(1) of the 2013 Act does not apply in respect of that pensionable service; and c benefits are to be provided under the AFPS 1975 to or in respect of P in relation to that pensionable service. Full protection member not eligible to join the AFPS 2015 6 1 While a person (P) is a full protection member of the AFPS 1975, P is not eligible to be an active member of the AFPS 2015. PART 3 Payment of ill-health benefits to transition members with continuity of service Transition members not to receive early ill-heath benefits except in accordance with this Part 7 A transition member with continuity of service is not to receive early benefits on ill-health retirement except as provided by this Part. This Part not to apply to previous periods of service 8 If a transition member has an earlier period of service within the meaning of paragraph (2) of rule G.1 (application of this Part) of the AFPS 1975 that has not been aggregated with a later period of service under Part G of the AFPS 1975, this Part does not apply to the earlier service. Active transition member with permanent serious ill-health who has not reached their immediate pension point 9 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for an ill-health pension (active member with permanent serious ill-health) under regulation 51 of the AFP Regulations 2014; and b has not reached their immediate pension point under the rules of the AFPS 1975 . 2 If this paragraph applies— a early benefits on ill-health are not payable under the AFPS 1975; and b ill-health benefits (active member with permanent serious ill-health) are payable under the AFPS 2015 in accordance with this paragraph. 3 The ill-health benefits payable under paragraph (2)(b) comprise benefits payable in respect of service before T’s transition date and benefits payable in respect of service from T’s transition date. 4 The benefits payable in respect of service before T’s transition date are such amount as the Defence Council may direct with the approval of the Treasury. 5 The benefits payable in respect of service from T’s transition date are calculated in accordance with the AFP Regulations 2014 but when calculating the rate of annual pension, the following is substituted for regulation 54(2)(b) of the AFP Regulations 2014— b B is the sum of— i the member’s pensionable service under the AFPS 2015; and ii X multiplied by N. c In this paragraph, X is equal to the member’s years of pensionable service in the AFPS 2015 divided by the total of the member’s years of reckonable service in the AFPS 1975 and pensionable service in the AFPS 2015. d In this paragraph, N is the greater of— i half of the further pensionable service which the member would have been able to count under the AFPS 2015 if the member had remained an accruing member from the date of the ill-health retirement until age 60; and ii the lesser of— aa 25 minus the total of the member’s years of reckonable service in the AFPS 1975 and pensionable service in the AFPS 2015; and bb the further pensionable service which the member would have been able to count under the AFPS 2015 if the member had remained an accruing member from the date of the ill-health retirement until age 60. . Transition member who leaves service before the immediate pension point with permanent serious ill-health who reaches age 55 10 1 This paragraph applies in relation to a transition member with continuity of service (T) who is receiving an ill-health pension (active members with permanent serious ill-health) in accordance with paragraph 9. 2 On the day the member reaches age 55— a of the benefits that were payable under paragraph 9(2)(b), the AFPS 1975 basic earned benefits cease to be payable under paragraph 9(2)(b) and instead become payable under the AFPS 1975; and b of the benefits that were payable under paragraph 9(2)(b), the AFPS 1975 ill-health enhancement benefits continue to be payable under paragraph 9(2)(b). 3 For the purpose of this paragraph— a “the AFPS 1975 basic earned benefits” means an amount determined by the Defence Council with the approval of the Treasury; and b “the AFPS 1975 ill-health enhancement benefits” means an amount determined by the Defence Council with the approval of the Treasury. Active transition member who leaves service with permanent serious ill-health after reaching their immediate pension point 11 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for an ill-health pension (active member with permanent serious ill-health) under regulation 51 of the AFP Regulations 2014; and b has reached their immediate pension point under the rules of the AFPS 1975. 2 In respect of service before T’s transition date— a the AFPS 1975 basic earned benefits are payable under the AFPS 1975, and b the AFPS 1975 ill-health enhancement benefits are payable under the AFPS 2015. 3 In respect of service from T’s transition date, early benefits on permanent serious ill health are payable under regulation 54 of the AFP Regulations 2014 but when calculating the amount of annual pension, regulation 54(2)(b) is amended as specified in paragraph 9(5). 4 For the purpose of this paragraph— a “the AFPS 1975 basic earned benefits” means an amount determined by the Defence Council with the approval of the Treasury; and b “the AFPS 1975 ill-health enhancement benefits” means an amount determined by the Defence Council with the approval of the Treasury. Active transition member with significant impairment of capacity for gainful employment who has not reached their immediate pension point 12 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for an ill-health pension (active members with significant impairment of capacity for gainful employment) under regulation 52 of the AFP Regulations 2014; and b has not reached their immediate pension point under the AFPS 1975. 2 If this paragraph applies— a early benefits on ill health are not payable under the AFPS 1975; and b ill-health benefits (active members with significant impairment of capacity for gainful employment) are payable under the AFPS 2015 in accordance with this paragraph. 3 The ill-health benefits payable under paragraph (2)(b) comprise benefits payable in respect of service before T’s transition date and benefits payable in respect of service from T’s transition date. 4 The benefits payable in respect of service before T’s transition date are such amount that the Defence Council may determine with the approval of the Treasury. 5 The benefits payable in respect of service from T’s transition date are calculated in accordance with the AFP Regulations 2014 but when calculating the rate of annual pension the following is substituted for regulation 55(2)(b)— b B is the sum of— i the member’s years of pensionable service under the AFPS 2015 as calculated according to regulation 55(2)(a)(i) and (ii); and ii X multiplied by N. c In this paragraph, X is equal to the member’s years of pensionable service in the AFPS 2015 divided by the total of the member’s years of reckonable service in the AFPS 1975 and pensionable service in the AFPS 2015. d In this paragraph, N is one third of the further pensionable service which the member would have been able to count under the AFPS 2015 if the member had remained an accruing member from the date of the ill-health retirement until age 60. . Transition member who leaves service before their immediate pension point with significant impairment of capacity for gainful employment who reaches age 55 13 1 This paragraph applies in relation to a transition member with continuity of service (T) who is receiving an ill-health pension (active members with significant impairment of capacity for gainful employment) in accordance with paragraph 12. 2 On the day the member reaches age 55— a of the benefits that were payable under paragraph 12(2)(b), the AFPS 1975 basic earned benefits cease to be payable under paragraph 12(2)(b) and instead become payable under the AFPS 1975; and b of the benefits that were payable under paragraph 12(2)(b), the AFPS 1975 significant incapacity ill-health enhancement benefits continue to be payable under paragraph 12(2)(b). 3 For the purpose of this paragraph— a the “AFPS 1975 basic earned benefits” means an amount determined by the Defence Council with the approval of the Treasury; and b the “AFPS 1975 significant incapacity ill-health enhancement benefits” means an amount determined by the Defence Council with the approval of the Treasury. Active transition member who leaves service with significant incapacity for gainful employment after reaching their immediate pension point 14 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for an ill-health pension (active members with significant impairment of capacity for gainful employment) under regulation 52 of the AFP Regulations 2014; and b leaves service after reaching their immediate pension point under the rules of the AFPS 1975. 2 In respect of service before T’s transition date— a the AFPS 1975 basic earned benefits are payable under the AFPS 1975, and b the AFPS 1975 ill-health enhancement benefits are payable under the AFPS 2015. 3 In respect of service from T’s transition date, early benefits on significant impairment of capacity for gainful employment are payable under regulation 55 of the AFP Regulations 2014 but when calculating the rate of annual pension, regulation 55(2)(b) is amended as specified in paragraph 12(5). 4 For the purpose of this paragraph— a “the AFPS 1975 basic earned benefits” means an amount determined by the Defence Council with the approval of the Treasury; and b “the AFPS 1975 ill-health enhancement benefits” means an amount determined by the Defence Council with the approval of the Treasury. Active transition member who leaves service with incapacity for service before reaching their immediate pension point 15 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for lump sum on incapacity for service (lump sum awards: incapacity for armed forces service) under regulation 19 of the EDP Regulations 2014; and b has not reached their immediate pension point under the rules of the AFPS 1975. 2 If this paragraph applies— a early benefits on ill-health are not payable under the AFPS 1975; and b ill-health benefits are payable under the AFPS 2015 and lump sum awards on incapacity for armed forces service are payable under the EDP 2015 in accordance with this paragraph. 3 The ill-health benefits payable under paragraph (2)(b) comprise benefits payable in respect of service before T’s transition date and benefits payable in respect of service from T’s transition date. 4 The benefits payable in respect of service before T’s transition date are such amount that the Defence Council may determine with the approval of the Treasury. 5 In respect of service from the member’s transition date, the lump sum award on incapacity for armed service is payable under regulation 19 of the EDP Regulations 2014. 6 Where this paragraph applies, the following is substituted for regulation 20 (amount of lump sum on incapacity for armed forces service) of the EDP Regulations 2014— 20 1 The amount of lump sum a person receives under regulation 19 (lump sum awards: incapacity for armed forces service) is to be determined by multiplying one eighth of the person’s final pensionable earnings by their service from their transition date expressed in years and fractions of a year except where— a the amount calculated is less than X, X being one half of the person’s final pensionable earnings multiplied by their service from their transition date divided by their total service expressed in years and fractions of years. In these circumstances the person is to receive an amount equivalent to X; or b the amount calculated is more than Y, Y being twice the person’s final pensionable earnings multiplied by their service from their transition date divided by their total service expressed in years and fractions of years. In these circumstances the person is to receive an amount equivalent to Y. 2 The lump sum is payable before the expiry of the period of 3 months beginning with the day on which the person ceases to be a member of the armed forces. In this regulation— a “total service” in relation to a member means the total of their service from their transition date plus their reckonable service as a member of the AFPS 1975, and b “transition date” has the same meaning as is given in paragraph 2 (interpretation) of Schedule 3 to the AFPS 1975 . . 7 If the person is entitled to early departure payments under regulation 9 (entitlement to early departure payments) of the EDP Regulations 2014, the person is not entitled to a lump sum award under sub-paragraph (5). Transition member who leaves service before their immediate pension point with incapacity for service who reaches age 55 16 1 This paragraph applies in relation to a transition member with continuity of service (T) who is receiving an ill-health pension (active members with incapacity for service) in accordance with paragraph 15. 2 On the day the member reaches age 55— a of the benefits that were payable under paragraph 15(2)(b), the AFPS 1975 basic earned benefits cease to be payable under paragraph 15(2)(b) and instead become payable under the AFPS 1975; and b of the benefits that were payable under paragraph 15(2)(b), the AFPS 1975 ill-health enhancement benefits continue to be payable under paragraph 15(2)(b). 3 For the purpose of this paragraph— a the “AFPS 1975 basic earned benefits” means an amount determined by the Defence Council with the approval of the Treasury; and b the “AFPS 1975 ill-health enhancement benefits” means an amount determined by the Defence Council with the approval of the Treasury. Active transition member who leaves service with incapacity for service after reaching their immediate pension point 17 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for a lump sum on incapacity for service (lump sum awards: incapacity for armed forces service) under regulation 19 of the EDP Regulations 2014; and b has reached their immediate pension point under the rules of the AFPS 1975. 2 In respect of service before T’s transition date— a the AFPS 1975 basic earned benefits are payable under the AFPS 1975, and b the AFPS 1975 ill-health enhancement benefits are payable under the AFPS 2015. 3 In respect of service from T’s transition date, benefits are payable under Part 4 of the EDP Regulations 2014. 4 Where this paragraph applies, the following is substituted for regulation 20 (amount of lump sum on incapacity for armed forces service) of the EDP Regulations 2014— 20 1 The amount of lump sum a person receives under regulation 19 (lump sum awards: incapacity for armed forces service) is to be determined by multiplying one eighth of the person’s final pensionable earnings by their service from their transition date expressed in years and fractions of a year except where— a the amount calculated is less than X, X being one half of the person’s final pensionable earnings multiplied by their service from their transition date divided by their total service expressed in years and fractions of years. In these circumstances the person is to receive an amount equivalent to X; or b the amount calculated is more than Y, Y being twice the person’s final pensionable earnings multiplied by their service from their transition date divided by their total service expressed in years and fractions of years. In these circumstances the person is to receive an amount equivalent to Y. 2 The lump sum is payable before the expiry of the period of 3 months beginning with the day on which the person ceases to be a member of the armed forces. 3 In this regulation— a “total service” in relation to a member means the total of their service from their transition date plus their reckonable service as a member of the AFPS 1975; and b “transition date” has the same meaning as given in paragraph 2 (interpretation) of Schedule 3 to the AFPS 1975 . . 5 If the person is entitled to early departure payments under regulation 9 (entitlement to early departure payments) of the EDP Regulations 2014, the person is not entitled to a lump sum award under sub-paragraph (3). 6 For the purpose of this paragraph— a “the AFPS 1975 basic earned benefits” means an amount determined by the Defence Council with the approval of the Treasury; and b “the AFPS 1975 ill-health enhancement benefits” means an amount determined by the Defence Council with the approval of the Treasury. Deferred transition member with permanent serious ill-health who has not reached age 55 18 1 This paragraph applies in relation to a transition member with continuity of service (T) who— a meets the criteria for an ill-health pension (deferred member with permanent serious ill-health) under regulation 56 of the AFP Regulations 2014; and b has not reached age 55. 2 Where T is a deferred member of the AFPS 1975— a early payment of preserved pension in case of ill-health is not payable under the AFPS 1975; and b ill-health benefits (deferred member with permanent serious ill-health) are payable under the AFPS 2015 in accordance with this paragraph. 3 The ill-health benefits payable under paragraph (2)(b) comprise benefits payable in respect of service before T’s transition date and benefits payable in respect of service from T’s transition date. 4 The benefits payable in respect of service before T’s transition date are calculated in accordance with rule D.18 of the AFPS 1975. 5 The benefits payable in respect of service from T’s transition date are calculated in accordance with regulation 56 of the AFP Regulations 2014. 6 Where the member is a pensioner member of the AFPS 1975— a a pension continues to be payable under the AFPS 1975 in respect of service before T’s transition date; and b a pension is payable under regulation 56 of the AFP Regulations 2014 in respect of service from T’s transition date. Deferred transition member with permanent serious ill-health who reaches age 55 19 1 This paragraph applies in relation to a transition member with continuity of service (T) who is receiving ill-health benefits (deferred members with permanent serious ill-health) in accordance with paragraph 18. 2 On the day the member reaches age 55, the AFPS 1975 benefits cease to be payable under paragraph 18(2)(b) and instead become payable under the AFPS 1975. Deferred transition member who meets criteria for permanent serious ill-health on or after reaching age 55 20 1 This paragraph applies in relation to a transition member with continuity of service (T) who is a deferred member of the AFPS 2015, who is age 55 or over, and who meets the criteria for an ill-health pension (deferred member with permanent serious ill-health) in regulation 56 of the AFP Regulations 2014. 2 Where the member is a deferred member of the AFPS 1975— a a pension is payable under the rules of the AFPS 1975 in respect of service before T’s transition date; and b a pension is payable under regulation 56 of the AFP Regulations 2014 in respect of service from T’s transition date. 3 Where the member is a pensioner member of the AFPS 1975— a a pension continues to be payable under the AFPS 1975 in respect of service before T’s transition date; and b a pension is payable under regulation 56 of the AFP Regulations 2014 in respect of service from T’s transition date. PART 4 Payment of death benefits in respect of transition members with continuity of service Death benefits not to be paid in respect of transition members except in accordance with this Part 21 Surviving adults pensions, eligible child’s pensions and lump sum death benefits are not to be paid in respect of transition members with continuity of service except as provided by this Part. This Part not to apply to previous periods of service 22 If a transition member has a period of earlier service within the meaning of rule G.1 (application of this Part) of the AFPS 1975 that has not been aggregated with a period of later service under Part G of the AFPS 1975, this Part does not apply to the earlier service. Surviving adult’s pension when transition member dies in service before reaching their immediate pension point 23 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as an active member of the AFPS 2015 before reaching their immediate pension point and for whom the conditions of regulation 65 (surviving spouses’ and civil partners’ pensions) or regulation 67 (other adult dependants’ pensions) of the AFP Regulations 2014 apply. 2 If this paragraph applies— a a pension for a surviving spouse or surviving civil partner (“surviving adult dependant”) is payable under the AFPS 1975 in respect of service before the transition date; and b a pension for a surviving adult dependant is payable under the AFPS 2015 in respect of service from the transition date. 3 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 4 The pension payable in respect of service from T’s transition date is calculated in accordance with the AFP Regulations 2014 but when calculating the rate of annual pension in accordance with regulation 70 (annual rate of adult dependants’ pensions payable on death of active member), the references in regulation 51 to regulation 54 are to be read as references to regulation 54 amended as specified in paragraph 9(5). Surviving adult’s pension when transition member dies in service on or after reaching their immediate pension point 24 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as an active member of the AFPS 2015 on or after reaching their immediate pension point and for whom the conditions of regulation 65 (surviving spouses’ and civil partners’ pensions) or regulation 67 (other adult dependants’ pensions) of the AFP Regulations 2014 apply. 2 If this paragraph applies— a a pension for a surviving spouse or surviving civil partner (“surviving adult dependant”) is payable under the AFPS 1975 in respect of T’s service before their transition date; and b a pension for a surviving adult dependant is payable under the AFPS 2015 in respect of service from T’s transition date. 3 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 4 The pension payable in respect of service from T’s transition date is calculated in accordance with the AFP Regulations 2014, but when calculating the rate of annual pension in accordance with regulation 70 (annual rate of adult dependants’ pensions payable on death of active member), the references in regulation 51 to regulation 54 are to be read as references to regulation 54 amended as specified in paragraph 9(5). Surviving adult dependant’s pension when a transition member dies as a pensioner member before reaching age 55 25 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as a pensioner member of the AFPS 2015 before reaching age 55 and for whom the conditions of regulation 65 (surviving spouses’ and civil partners’ pensions) or regulation 67 (other adult dependants’ pensions) of the AFP Regulations 2014 apply. 2 A pension for a surviving adult dependant is payable under the AFPS 1975 in respect of service before the transition date. 3 A pension for a surviving adult dependant is payable under the AFPS 2015 in respect of service from T’s transition date. 4 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 5 The pension payable in respect of service from T’s transition date is payable under regulation 68 (annual rate of adult dependants’ pensions payable on death of pensioner member) of the AFP Regulations 2014, but— a where the pensioner was in receipt of early benefits on permanent serious ill-health, when calculating the rate of annual pension in accordance with regulation 68, the references in regulation 51 to regulation 54 are to be read as references to regulation 54 amended as specified in paragraph 9(5); and b where the pensioner was in receipt of early benefits on significant incapacity for gainful employment, when calculating the rate of annual pension in accordance with regulation 68, the references in regulation 52 to regulation 55 are to be read as references to regulation 55 amended as specified in paragraph 12(5). Surviving adult dependant’s pension when a transition member dies as a deferred member before reaching age 55 26 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as a deferred member of the AFPS 2015 before reaching age 55 and for whom the conditions of regulation 65 (surviving spouses’ and civil partners’ pensions) or regulation 67 (other adult dependants’ pensions) of the AFP Regulations 2014 apply. 2 If this paragraph applies— a a pension for a surviving adult dependant is payable under the AFPS 1975 in respect of service before the transition date; and b a pension for a surviving adult dependant is payable under the AFPS 2015 in respect of service from the transition date. 3 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 4 The pension payable in respect of service from T’s transition date is payable under regulation 69 (annual rate of adult dependants’ pensions payable on death of a deferred member) of the AFP Regulations 2014. Surviving adult dependant’s pension when a transition member dies as a deferred member or a pensioner member on or after reaching age 55 27 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as a deferred member or a pensioner member of the AFPS 2015 on or after reaching age 55 and for whom the conditions of regulation 65 (surviving spouses’ and civil partners’ pensions) or regulation 67 (other adult dependants’ pensions) of the AFP Regulations 2014 apply. 2 In the case of a deferred member of the AFPS 2015— a a pension for a surviving adult dependant is payable under the AFPS 1975 in respect of service before T’s transition date and the rate of annual pension is as the Defence Council may determine with the approval of the Treasury; and b a pension for a surviving adult dependant is payable under regulation 69 (annual rate of adult dependants’ pensions payable on death of a deferred member) of the AFP Regulations 2014 in respect of service from T’s transition date, 3 In the case of a pensioner member of the AFPS 2015— a a pension for a surviving adult dependant is payable under the AFPS 1975 in respect of service before T’s transition date and the rate of annual pension is as the Defence Council may determine with the approval of the Treasury; and b a pension payable in respect of service from T’s transition date is calculated in accordance with the AFP Regulations 2014, but— i where the pensioner was in receipt of early benefits on permanent serious ill-health, when calculating the rate of annual pension in accordance with regulation 68 (annual rate of adult dependants’ pensions payable on death of pensioner member), the calculation of the member’s retirement earned pension is to take account of the amendment in paragraph 9(5) to regulation 54. ii where the pensioner was in receipt of early benefits on significant incapacity for gainful employment, when calculating the rate of annual pension in accordance with regulation 68, the calculation of the member’s retirement earned pension is to take account of the amendment in paragraph 12(5) to regulation 55. Eligible child’s pension when a transition member dies in service before reaching their immediate pension point 28 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as an active member of the AFPS 2015 before reaching their immediate pension point under the rules of the AFPS 1975 and for whom the conditions of regulation 72 (surviving children’s pensions) of the AFP Regulations 2014 apply. 2 If this paragraph applies— a a pension for an eligible child is payable under the AFPS 1975 in respect of service before the transition date; and b a pension for an eligible child is payable under the AFPS 2015 in respect of service from the transition date. 3 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 4 The pension payable in respect of service from T’s transition date is calculated in accordance with the AFP Regulations 2014 but when calculating the rate of annual pension in accordance with regulation 74 (annual rate of children’s pensions), the references in regulation 51 to regulation 54 are to be read as references to regulation 54 amended as specified in paragraph 9(5). Eligible child’s pension when transition member dies in service on or after reaching their immediate pension point 29 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as an active member of the AFPS 2015 on or after reaching their immediate pension point and for whom the conditions of regulation 72 (surviving children’s pensions) of the AFP Regulations 2014 apply. 2 If this paragraph applies— a a pension for an eligible child is payable under the AFPS 1975 in respect of T’s service before their transition date; and b a pension for an eligible child is payable under the AFPS 2015 in respect of T’s service from their transition date. 3 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 4 The pension payable in respect of service from T’s transition date is calculated in accordance with the AFP Regulations 2014, but when calculating the rate of annual pension in accordance with regulation 74 (annual rate of children’s pensions), the references in regulation 51 to regulation 54 are to be read as references to regulation 54 amended as specified in paragraph 9(5). Eligible child’s pension when a transition member dies as a pensioner member before reaching age 55 30 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as pensioner member of the AFPS 2015 before reaching age 55 and for whom the conditions of regulation 72 (surviving children’s pensions) of the AFP Regulations 2014 apply. 2 A pension for an eligible child is payable under rule E.14 (amount of child’s longer- term pension) of the AFPS 1975 in respect of service before T’s transition date. 3 A pension for an eligible child is payable under the AFPS 2015. 4 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 5 The pension payable in respect of service from T’s transition date is payable under regulation 72 of the of the AFP Regulations 2014, but— a where the pensioner was in receipt of early benefits on permanent serious ill-health, when calculating the rate of annual pension in accordance with regulation 74 (annual rate of children’s pensions), the references in regulation 51 to regulation 54 are to be read as references to regulation 54 amended as specified in paragraph 9(5); and b where the pensioner was in receipt of early benefits on significant incapacity for gainful employment, when calculating the rate of annual pension in accordance with regulation 74, the references in regulation 52 to regulation 55 are to be read as references to regulation 55 amended as specified in paragraph 12(5). Eligible child’s pension when a transition member dies as a deferred member before reaching age 55 31 1 This paragraph applies in relation to a transition member with continuity of service (T) who dies as a deferred member before reaching age 55 and for whom the conditions of regulation 72 (surviving children’s pensions) of the AFP Regulations 2014 apply. 2 If this paragraph applies— a a pension for an eligible child is payable under the AFPS 1975 in respect of service before the transition date; and b a pension for an eligible child is payable under the AFPS 2015 in respect of service from the transition date. 3 The rate of annual pension payable in respect of service before T’s transition date is as the Defence Council may determine with the approval of the Treasury. 4 The pension payable in respect of service from T’s transition date is calculated in accordance with the AFP Regulations 2014, but— a where the pensioner was in receipt of early benefits on permanent serious ill-health, when calculating the rate of annual pension in accordance with regulation 74 (annual rate of children’s pensions), the calculation of the member’s retirement earned pension is to take account of the amendment in paragraph 9(5) to regulation 54; and b where the pensioner was in receipt of early benefits on significant incapacity for gainful employment, when calculating the rate of annual pension in accordance with regulation 74, the calculation of the member’s retirement earned pension is to take account of the amendment in paragraph 12(5) to regulation 55. Eligible child’s pension when a transition member dies as a deferred member or pensioner member on or after reaching age 55 32 1 This paragraph app