Make new provision for establishing pension and compensation schemes for
the armed or reserve forces; to amend the Pensions Appeal Tribunals Act
1943; to provide for the transfer of the property, rights and liabilities of the
Royal Patriotic Fund Corporation to a registered charity; and for connected
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Pensions and compensation
Pension and compensation schemes: armed and reserve forces
The Secretary of State may by order establish schemes which, in respect of a
person’s service in the armed forces, provide—
for benefits, in the form of pensions or otherwise, to be payable to or in
respect of him on termination of service or on death or retirement, or
for payments to be made towards the provision of such benefits.
Such a scheme is referred to in this Act as an armed forces pension scheme.
The Secretary of State may by order establish schemes which provide for
benefits to be payable to or in respect of a person by reason of his illness or
injury (whether physical or mental), or his death, which is attributable (wholly
or partly) to his service in the armed forces or the reserve forces.
Such a scheme is referred to in this Act as an armed and reserve forces
The Secretary of State may provide for any scheme under this section to be
administered by another person.
Payments due from scheme administrator in respect of deceased persons
This section applies if on the death of any person who is or has been a member
of the armed forces or the reserve forces—
an amount is due to him in respect of benefits payable under an armed
forces pension scheme or an armed and reserve forces compensation
the amount is payable by a person (“the administrator”) other than the
Sections 3 and 5 to 11 of Navy and Marines (Property of Deceased) Act 1865
(c. 111) (distribution of personal estate of deceased seamen, etc.) are to have
effect in relation to the due amount as if it were payable by the Secretary of
State, and the Secretary of State may give directions to the administrator as to
the payment of that amount.
Section 4 of the Pensions and Yeomanry Pay Act 1884 (c. 55) (distribution of
personal estate of deceased soldiers, etc., not exceeding £5000) is to have effect
in relation to the due amount as if it were held by or under the control of the
Secretary of State, and the Secretary of State may give directions to the
administrator as to the payment of the due amount.
The power of the Secretary of State to modify an armed forces pension scheme
may not on any occasion be exercised in any manner which would or might
adversely affect any entitlement, accrued rights or pension credit rights of any
member of the scheme acquired before the power is exercised unless—
the consent requirements are satisfied in respect of the exercise of the
power on that occasion in that manner, or
the scheme is modified in the prescribed manner.
The consent requirements are those prescribed for the purpose of obtaining the
consent of members of the scheme to its modification.
“prescribed” means prescribed by an order under section 1,
“accrued rights”, “entitlement”, “member” and “pension credit rights”
have the same meanings as in Part 1 of the Pensions Act 1995 (c. 26).
Existing naval and marine pensions
In section 3 of the Naval and Marine Pay and Pensions Act 1865 (c. 73)
(payment to officers, widows etc.), for the words from “services” to “deceased”
there is substituted “service in Her Majesty’s naval or marine force as an”.
Amendments to Pensions Appeal Tribunals Act 1943
Schedule 1 (which makes amendments to the Pensions Appeal Tribunals Act
1943 (c. 39) about appeals to and from Pensions Appeal Tribunals, including
amendments conferring appeal rights in relation to schemes under section 1(2)
Miscellaneous and supplementary
Royal Patriotic Fund Corporation
The Secretary of State may by order transfer, or provide for the transfer of, the
property, rights and liabilities of the Royal Patriotic Fund Corporation to a
registered charity established for the benefit of persons who—
are widows or widowers, or children or dependants, of persons who
have served in the armed forces or the reserve forces, and
are in need of assistance.
The rights and liabilities that may be transferred include rights and liabilities
under a contract of employment.
Schedule 2 makes provision in relation to the transfer of employees.
An order under this section may provide for the dissolution of the Corporation.
A reference in any instrument or other document to the Corporation is, so far
as the context permits, to be read as a reference to the transferee.
In this section “charity” has the same meaning as in the Charities Act 1993
(c. 10) and “registered” means registered under that Act.
In section 4 of the Forfeiture Act 1982 (c. 34) (Commissioner to decide whether
forfeiture rule applies to social security benefits), in the definition of “relevant
enactment” in subsection (5), the following entry is inserted after the entry
relating to the Social Security Contributions and Benefits Act 1992—
“section 1 of the Armed Forces (Pensions and Compensation) Act
The enactments set out in Schedule 3 are repealed to the extent specified.
The preceding provisions of this Act are to come into force on such day as the
Secretary of State may by order appoint.
Any expenses incurred by the Secretary of State in pursuance of this Act are to be paid
out of money provided by Parliament.
Any power to make an order under this Act is exercisable by the Secretary of
State by statutory instrument.
An order under this Act may make—
any supplementary, incidental or consequential provision,
any transitory, transitional or saving provision,
which the Secretary of State considers necessary or expedient for the purposes
of, in consequence of or for giving full effect to any provision of this Act.
The provision which may be made under subsection (2) includes provision
amending or repealing any enactment or instrument.
A statutory instrument containing an order under this Act is to be subject to
annulment in pursuance of a resolution of either House of Parliament.
A statutory instrument containing an order under this Act which adds to,
replaces or omits any part of the text of an Act is not to be made unless a draft
of the instrument has been laid before, and approved by a resolution of, each
House of Parliament; and subsection (4) does not apply to such an instrument.
“armed forces” means the naval, military or air forces of the Crown, but
“reserve forces” has the same meaning as in the Reserve Forces Act 1996
This Act may be cited as the Armed Forces (Pensions and Compensation) Act