(1) This Order may be cited as the Armed Forces (Pensions) (Prescribed Modification) Order 2009 and comes into force on 6th March 2009.
(2) In this Order—
“final pensionable earnings” has the meaning given in rule A.4 of the Scheme; and
“the Scheme” means the Armed Forces Pension Scheme 2005 established by the Armed Forces Pension Scheme Order 2005 and set out in Schedule 1 to that Order.
Specified date: 6 March 2009: see para (1) above.
For the purposes of section 3(1)(b) of the Armed Forces (Pensions and Compensation) Act 2004, the prescribed manner of the exercise of the power to modify a pension scheme established under section 1(1) of that Act is any modification to the way that adjustments for inflation are calculated for the purposes of—
(a) determining final pensionable earnings;
(b) increasing pensions.
Specified date: 6 March 2009: see art 1(1).
Kevan Jones
Parliamentary Under Secretary of State
Ministry of Defence
11th February 2009
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.
