(This note is not part of the Order)
This Order is made under the Armed Forces (Pensions and Compensation) Act 2004 (c 32) (“the 2004 Act”). Section 3(1) of the 2004 Act provides that the power of the Secretary of State to modify a scheme established under section 1(1) of that Act in a way that would or might adversely affect any accrued rights or entitlements of members can only be exercised if either the consent requirements are satisfied or the Scheme is modified in the prescribed manner.
Article 2 of this Order prescribes the way in which the power to modify may be exercised. It allows changes to be made to the way in which adjustments for inflation are calculated when determining final pensionable earnings (paragraph (a)) and are applied to increase pensions (paragraph (b)).
A full regulatory impact assessment has not been produced on this instrument as it has no impact on the costs of business, charities or the voluntary sector.