Incoming final salary Club transfers for both AFPS05 and AFPS15 members are received into AFPS05, using scheme-specific Club factors. These can be found in table 109i for members who are not Medical or Dental Officers (MODOs). Cases in respect of MODOs should be referred to GAD.

Incoming final salary Club transfers for RFPS and NRPS members are dealt with using standard Club factors for the appropriate Normal Pension Age. The relevant tables are Table 2 in the Club Memorandum for NRPS and Table 3 in the Club Memorandum for RFPS.

Incoming CARE Club transfers to AFPS15 are dealt with using the standard Club factors in Table 2 in the Club Memorandum. This includes cases in respect of MODOs.

Incoming CARE Club transfers to AFPS05 are transferred on a non-Club basis, in line with the Club Memorandum. Please see our guidance on non-Club transfers in respect of these cases.

Incoming CARE Club transfers to other Armed Forces schemes should be referred to GAD.

In accordance with the Club Memorandum:

1. Where the transferring scheme's Deferred Pension Age ("DPA") and receiving scheme's Normal Pension Age ("NPA") are the same and the attached lump sum and spouse's proportion in each scheme are the same:
   1. the accrued pension pot is transferred unadjusted into the receiving scheme;
   2. while the member stays in service, the transferred pension pot is uprated annually by the transferring scheme's in-service revaluation rate (by reference to the relevant Treasury Order).
2. If the transferring scheme's DPA and the receiving scheme's NPA are different or the attached lump sum and spouse's proportion in each scheme are different (including where the member has bought a reduced NPA in the transferring scheme which is different from the NPA in the receiving scheme):
   1. the accrued pension pot will be transferred into the receiving scheme and adjusted to reflect the differences;
   2. while the member stays in service, this will be uprated annually by the transferring scheme's in-service revaluation rate (by reference to the relevant Treasury Order).

If a transfer-in is accepted, the period of time the member was an active member of the previous occupational pension scheme is counted as qualifying service in the AFPS15 scheme.

Transferred-in service will not count towards the EDP15 qualification criteria.

If a transferred-in member serves until NPA 60 and then retires, the transferred-in pension comes into payment immediately alongside the regular AFPS15 pension.

If a transferred-in member leaves service before NPA 60 with only a deferred pension, the transferred-in pension is payable from DPA alongside the deferred pension. The transferred-in pension is subject to AFPS15 pension increases in deferment during the period between leaving service and DPA.

For the cases where a transferred-in member leaves service before NPA 60 with entitlement to EDP benefits, the transferred-in pension impacts on EDP benefits as per the AFPS15 deferred CARE pension.

The transferred-in pension will interact with ill-health benefits as follows:

1. Tier 1: the transferred-in pension does not impact on Tier 1 lump sums awarded where a member retires on Tier 1 ill-health pre the EDP point; however it will impact on EDP benefits awarded where a member leaves on Tier 1 ill-health after the EDP point as per cases where a transferred-in member leaves service before NPA 60 with entitlement to EDP benefits, as outlined above. In either case the transferred-in pension will be payable from DPA as per transferred-in member leaves service before NPA 60 with only a deferred pension, as outlined above.
2. Tier 2: The transferred-in pension becomes a deferred pension if it was transferred-in less than 2 years prior to the date of retirement; otherwise it is payable immediately.
3. Tier 3: The transferred-in pension becomes a deferred pension if it was transferred-in less than 2 years prior to the date of retirement; otherwise the treatment of the transferred-in pension depends on the amount of enhanced service the member is awarded as follows:
   1. If, after the service enhancement has been applied, the Tier 3 ill-health pension from AFPS15 service is based on more than (or is equal to) the lower of 25 years' service and total possible service to NPA (i.e. the minimum service guarantee does not bite), the transferred-in pension is paid immediately.
   2. If, after the service enhancement has been applied, the Tier 3 ill-health pension from AFPS15 service is based on less than the lower of 25 years' service and total possible service to NPA (i.e. the minimum service guarantee bites), the greater of the following will be paid:
      1. The post-guarantee enhanced pension (i.e. based on the lower of 25 years' service and total possible service to NPA); and
      2. The aggregate of the pre-guarantee enhanced pension and the transferred-in pension.

i.e. the transferred-in pension will only be paid if adding it to the pre-guarantee enhanced pension yields a larger pension than the post-guarantee enhanced pension.

The transferred-in pension impacts on death benefits is as follows:

1. Death in service: since the pension is based on the Tier 3 ill-health pension, the transferred-in pension impacts on the death in service pension as outlined in part c of the fourth paragraph in this subsection ("Tier 3" above). The death in service lump sum is based on pensionable pay and so the transferred-in pension does not impact on this.
2. Death in deferment: the transferred-in pension is included in the calculation of the death in deferment pension of 62.5% of the member's deferred pension and death in deferment lump sum of 3 times member's deferred pension.
3. Death in receipt: the transferred-in pension is included in the calculation of the death in service pension of 62.5% of the member's pension and in the calculation of the guarantee payment when death occurs within 5 years of retirement.

Any commutation options chosen for the benefits alongside which the transferred-in pension is eventually paid also apply to the transferred-in pension. Such options are subject to the relevant scheme rules and HMRC limits.

Where a member chooses early or late payment of deferred benefits, this choice is automatically be applied to any transferred-in pension. The general early and late retirement factors are used to adjust the amount of transferred-in pension to be paid in such cases.

Where a member chooses to stay in service beyond NPA 60, the late payment uplift due on leaving service can be calculated identically to that given to the AFPS 15 benefits so long as the transferred in-service revaluation rate is the same as that of AFPS 15 (i.e. currently AWE).

However, the cases where members stay in service beyond NPA 60 and so delay payment of a transferred-in pension which revalues at a rate different from AWE are more complicated. Any such cases should be referred to GAD who will provide bespoke late retirement factors to be applied to the transferred-in pension.

Similar to the treatment of regular AFPS15 pension, where a member who has a transferred-in pension leaves and then rejoins, the transferred-in pension will be revalued at the transferring scheme's in-service revaluation rate for the duration away from service only if the member rejoins within 5 years. Otherwise it will become a deferred pension and will be revalued at the AFPS15 deferred revaluation rate until coming into payment (as per the second paragraph of subsection Interaction of Transferred-In Pension with AFPS 15 Benefits).

It is our understanding that transferred-in pension counts towards the AFPS75 and AFPS05 abatement for rejoiners with service in both AFPS15 and AFPS75 or AFPS05 (similarly to the treatment of Added Pension).

Subject to the same rules and limits as regular pension, transferred-in pension can be allocated. Our understanding is that:

1. pension cannot be allocated if the member has retired on Tier 2/3/serious ill-health; and
2. the maximum permitted percentage of pension that can be allocated must ensure that the dependant's pension does not exceed the member's pension on death after age 75 and cannot be greater than 37.5%.

Where the transferred-in pension is converted into an addition to the EDP benefits, these payments are made under the EDP scheme; in all other cases the payments are made under the AFPS15.

If the transferred-in pension contains an element of Added Pension, the case should be dealt with on an individual basis by referral to GAD.