#2026/684National Insurance Treatment of Armed Forces Early Departure Payments
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This regulation expands an existing National Insurance contributions disregard for certain armed forces pension-related payments. It adds payments that are equivalent to Early Departure Payment 2015 benefits, where those payments arise from pension remedy elections linked to service under the Armed Forces Pension Scheme 1975. The practical effect is narrow. It helps ensure that affected armed forces personnel receiving these equivalent benefits are treated in the same way for earnings-related National Insurance contributions as those receiving the existing Early Departure Payment 2015 benefits.
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Key Changes
- Adds EDP 2015 equivalent benefits under the Armed Forces Pension Scheme 1975 to the list of payments disregarded when calculating earnings-related National Insurance contributions.
- Links the new disregard to pension remedy elections made under the Public Service Pensions and Judicial Offices Act 2022.
- Defines the armed forces pension schemes and benefit terms needed to apply the change.
Obligations
What this law requires
From 20 July 2026, exclude payments of EDP 2015 equivalent benefits under the Armed Forces Pension Scheme 1975 from earnings when calculating earnings-related National Insurance contributions, in the same way as existing Early Departure Payment 2015 benefits are disregarded.