The Firefighters' Pension Scheme (Wales) Order 2007

• (a) any part of the person’s pension is withdrawn permanently under rule 5 of Part 9 following the person’s conviction of an offence of a description specified in paragraph (3) of that rule (treason and certain offences under the Official Secrets Acts 1911 to 1989); or

• (b) the pension is commuted under rule 10 of Part 3 (commutation: small pensions).

Survivors' guaranteed minimum pensions

2

• (1) Subject to paragraph (3), this rule applies in relation to a firefighter member’s surviving spouse or civil partner who has a guaranteed minimum pension under section 17 of the 1993 Act in relation to benefits under Chapter 1 of Part 4 of this Scheme in respect of the deceased member.

• (2) If apart from this rule—

• (a) no pension is payable to the surviving spouse or civil partner under this Scheme; or

• (b) the weekly rate of the pension payable is less than the surviving spouse or civil partner’s guaranteed minimum,

a pension, of which the weekly rate is equal to the surviving spouse or civil partner’s guaranteed minimum, is payable to the surviving spouse or civil partner from the date on which the deceased died until the death of the surviving spouse or civil partner.

• (3) This rule does not apply if—

• (a) any part of the firefighter member’s pension has been withdrawn permanently under rule 5 of Part 9 following the firefighter member’s conviction of an offence of a description specified in paragraph (3) of that rule (treason and certain offences under the Official Secrets Acts 1911 to 1989);

• (b) the firefighter member’s pension has been commuted under rule 10 of Part 3; or

• (c) the survivor’s pension has been commuted under rule 5 of Part 4.

Information for authorities

3

• (1) An authority may by written notice require any person who is in receipt of a pension or may have an entitlement to a pension or a lump sum under this Scheme to provide the authority with such supporting evidence as the authority may reasonably require to establish—

• (a) the identity of that person; and

• (b) that person’s continuing or future entitlement to the payment of any amount under this Scheme.

• (2) A notice under paragraph (1) must specify the date by which the supporting evidence is to be provided.

• (3) Where a person fails to comply with the requirements of a notice given in accordance with paragraph (1), the authority may withhold the whole or part of any amount that they consider to be payable under the Scheme.

Annual benefit statements

4

• (1) An authority must issue an annual benefit statement to each of their firefighter, deferred and pension credit members.

• (2) The first such statements must be issued on or before 1 April 2007, and subsequent statements must be issued on or before each 1 April thereafter.

• (3) An annual benefit statement must contain an illustration of the amount of benefit entitlement, in respect of the rights that may arise under the Scheme, which—

• (a) has been accrued by the member at the relevant date, and

• (b) in the case of a firefighter member, is capable of being accrued by the firefighter member if the firefighter member remains in the Scheme until the firefighter member’s normal retirement date.

• (4) The illustration must be calculated—

• (a) in the case of a firefighter member, on the member’s pay (or, in the case of a part-time firefighter member, the whole-time equivalent) for the twelve-month period ending with the relevant date;

• (b) in the case of a deferred member, on the member’s final pay; and

• (c) in the case of a pension credit member, in accordance with rule 1 of Part 6, as if the pension credit member were to become entitled to the pension on the pension credit member’s sixty-fifth birthday.

• (5) For the purposes of this rule, the relevant date—

• (a) in the case of a pension credit member, is that of the pension credit member’s sixty-fifth birthday;

• (b) in any other case, is 31 March of the period in respect of which the statement is issued, or such later date as the authority may choose.

Death of retained or volunteer firefighter before Firefighters' Pension Scheme (Wales) Order 2007 in force

5

• (1) This rule applies where a retained or volunteer firefighter dies on or after 6 April 2006 and before the Firefighters' Pension Scheme (Wales) Order 2007 comes into force.

• (2) Chapters 1 and 2 of Part 4 of this Scheme (survivors' pensions), rule 1 of Part 5 of this Scheme (death grant) and rule 3 of Part 11 (pension contributions) have effect in respect of the deceased as if—

• (a) the deceased had become a member of this Scheme—

• (i) where the deceased was employed by an authority immediately before 6 April 2006, on that date,

• (ii) in any other case, on the date on which the deceased took up employment with the authority;

• (b) the deceased had not made a contributions election; and

• (c) the deceased’s qualifying service and the deceased’s pensionable service began on whichever is the later of—

• (i) the date on which the deceased took up employment, and

• (ii) 6 April 2006,

and ended on the date of the deceased’s death

• (3) Where—

• (a) in anticipation of the coming into force of this Scheme , the deceased nominated a nominated partner, and

• (b) the nomination was received and accepted by the authority before the deceased died,

the deceased’s nominated partner is entitled to the same benefits under this Scheme as if the nomination had effect for the purposes of this Scheme.

• (4) The authority must deduct from the death grant payable by virtue of paragraph (2) the amount of the pension contributions that would have been payable under rule 3 of Part 11; and rule 1 of that Part has effect for determining the deceased’s pensionable pay for that purpose.

• (5) The authority must notify the personal representatives of the amount deducted.

Death on or before 31 March 2007 of retained or volunteer firefighters employed before 6 April 2006

6

• (1) This rule applies where a retained or volunteer firefighter employed by an authority immediately before 6 April 2006 dies on or before 31 March 2007 without having made an election as to membership of this Scheme.

• (2) Chapters 1 and 2 of Part 4 of this Scheme (survivors' pensions), rule 1 of Part 5 of this Scheme (death grant) and rule 3 of Part 11 (pension contributions) have effect in respect of the deceased as if—

• (a) the deceased had elected to become a member of this Scheme on 6 April 2006 and had not made a contributions election, and

• (b) the deceased’s qualifying service and the deceased’s pensionable service began on 6 April 2006 and ended on the date of the deceased’s death.

• (3) Where—

• (a) in anticipation of the coming into force of this Scheme , the deceased nominated a nominated partner, and

• (b) the nomination was received and accepted by the authority before the deceased died,

the deceased’s nominated partner will be entitled to the same benefits under this Scheme as if the nomination had effect for the purposes of this Scheme.

• (4) The authority must deduct from the death grant payable by virtue of paragraph (2) the amount of the pension contributions that would have been payable under rule 3 of Part 11; and rule 1 of that Part has effect for determining the deceased’s pensionable pay for that purpose.

• (5) The authority must notify the personal representatives of the amount deducted.

SCHEDULE 2 — TRANSITIONAL ARRANGEMENTS

Regular firefighters who became members of the 1992 scheme on or after 6 April 2006

1

• (1) The following provisions of this paragraph apply in relation to regular firefighters who became members of the 1992 Scheme on or after 6 April 2006 and before the coming into force of this Order.

• (2) Where, before the coming into force of this Order, the firefighter made an election under rule G3 of the 1992 Scheme (election not to pay pension contributions), that election must be treated on and after the coming into force of this Order as an election under rule 5 of Part 2 of the New Firefighters' Pension Scheme (Wales) (referred to in this Schedule as the “new scheme”).

• (3) The period of the firefighter’s service as a member of the 1992 Scheme must be treated as a period of qualifying service under rule 1(a) of Part 10 of the new scheme.

• (4) The period of the firefighter’s pensionable service accrued under the 1992 Scheme must be treated as pensionable service accrued under rule 2(1)(a) of Part 10 of the new scheme.

• (5) Where, on or after 6 April 2006, the fire and rescue authority accepted a transfer value in respect of the firefighter under rule F7 (receipt of transfer value) of the 1992 Scheme—

• (a) the amount accepted must be treated as a transfer value payment accepted under rule 10 of Chapter 3 of Part 12 of the new scheme, irrespective of paragraphs (2) and (3) of rule 2 of Part 10, and

• (b) rule 11 of Chapter 3 of Part 12 will apply as if, for paragraph (2), there were substituted—

(2) For the purposes of that calculation, the member’s pensionable earnings are to be taken to be the amount of those earnings as at the date on which the transfer value payment is received.

Options for active members of the 1992 Scheme

2

• (1) Sub-paragraph (2) applies in relation to each person who —

• (a) was a member of the 1992 Scheme both before 6 April 2006 and immediately before the coming into force of this Order, and

• (b) was not at any time before the coming into force of this Order in receipt of a pension or entitled to a deferred pension under that Scheme.

• (2) A fire and rescue authority must, not later than 30 March 2007, give to each person to whom this sub-paragraph applies a written statement —

• (a) of the pensionable service that the authority would treat the person as having accrued in the new scheme (calculated in accordance with paragraph 3) if the person were to elect to transfer the person’s accrued rights under the 1992 Scheme to the new scheme, and

• (b) that, if the person wishes to make that election, the person must do so by written notice to the authority not later than 28 April 2007.

• (3) A person’s notice under sub-paragraph (2)(b) must state —

• (a) the date, which may be either 6 April 2006 or such later date as the person specifies in the notice, on which the person wishes to be treated as becoming a member of the new scheme, and

• (b) whether the person wishes —

• (i) to retain the person’s accrued rights in the 1992 Scheme, or

• (ii) to transfer those rights, subject to paragraph 3, to the new scheme.

• (4) A fire and rescue authority must not accept a person’s election to transfer the person’s accrued rights if the aggregate of —

• (a) the person’s pensionable service treated as accrued as mentioned in sub-paragraph (2)(a), and

• (b) the person’s prospective pensionable service, on the assumption that the person continues to be a member of the new scheme until the person reaches the age of sixty,

would exceed forty five years by the time of the person’s sixtieth birthday.

• (5) Where a fire and rescue authority accept a person’s election to transfer that person’s accrued rights, they must —

• (a) within twenty eight days after the date on which they receive the person’s notice under sub-paragraph (2)(b), make all the arrangements necessary to give effect to that election, and

• (b) within twenty eight days of making those arrangements, supply the person with a written statement of the pensionable service credited in the new scheme in consequence of the transfer of the person’s accrued rights.

• (6) A person whose election to transfer the person’s accrued rights has been accepted must be treated —

• (a) where 6 April 2006 is specified in the person’s notice under sub-paragraph (2)(b), as having ceased to be a member of the 1992 Scheme on 5 April 2006,

• (b) where a date later than 6 April 2006 is specified in the person’s notice under sub-paragraph (2)(b), as having ceased to be a member of the 1992 Scheme on the day before that later date, and

• (c) as having become a member of the new scheme on the day after that on which the person is treated as having ceased to be a member of the 1992 Scheme.

• (7) Where a person is treated as becoming a member of the new scheme on 6 April 2006 —

• (a) pensionable service that the person accrued in the 1992 Scheme on and after that date must be disregarded for the purposes of the 1992 Scheme;

• (b) the person’s pensionable and qualifying service on and after that date is, insofar as it does not accrue in the new scheme, treated as having accrued in the new scheme; and

• (c) the authority must refund to the person the amount of the difference between the pension contributions —

• (i) that the person made, as a member of the 1992 Scheme, in respect of the period beginning on 6 April 2006 and ending on the date on which all necessary arrangements to give effect to the person’s election have been made, and

• (ii) that the person would have made, as a member of the new scheme, in respect of that period.

• (8) In the case of a person mentioned in sub-paragraph (6)(b) who specifies in their notice under sub-paragraph (2)(b) a date later than 6 April 2006, sub-paragraph (7) applies as if —

• (a) references to 6 April 2006 (in whatever terms) were references to that later date; and

• (b) where that later date is on or after the coming into force of this Order, paragraph (c) were omitted.

• (9) Where a person in relation to whom sub-paragraph (2) applies had elected under rule G6 of the 1992 Scheme to purchase increased benefits —

• (a) the person’s election under that rule is, notwithstanding paragraph (5)(b) of that rule, treated as revoked with effect from 6 April 2006 or, where the person specifies a later date in the person’s notice under sub-paragraph (2)(b), that later date;

• (b) nothing in paragraph (a) affects the person’s entitlement to make an election under rule 6 of Chapter 2 of Part 11 of the new scheme (election to purchase additional service); and

• (c) for the purposes of rule 5(4) of that Chapter, the calculation under sub-paragraph (a) or, as the case may be, the determination under sub-paragraph (b), must be made on the basis of the person’s age at the time of the person’s election under rule G6 of the 1992 Scheme.

Calculation of transferred-in pensionable service

3

For the purposes of calculating the pensionable service that a person is treated as having accrued in the new scheme on the transfer of that person’s accrued rights under the 1992 Scheme, fire and rescue authorities —

• (a) must have regard to guidance and tables provided by the Scheme Actuary for the purposes of this Schedule, and

• (b) must disregard Chapter 3 of Part 12 of the new scheme (transfers into the Scheme).

Signed

Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998[^f00004]

D. Elis-Thomas — The Presiding Officer of the National Assembly — 28 March 2007

Explanatory note

(This note is not part of the Order)

This Order makes provision for a new pension scheme for and in respect of firefighters employed by fire and rescue authorities in Wales (“the new Scheme”). The new Scheme, which is set out in Schedule 1 to the Order, has effect from 6 April 2006, save for Part 13, which will have effect from 1 April 2007. The new Scheme replaces the Firefighters' Pension Scheme set out in Schedule 2 to the Firemen’s Pension Scheme Order 1992 (“the 1992 Scheme”). Power to give the new Scheme retrospective effect is conferred by section 34 of the Fire and Rescue Services Act 2004.

Part 1 of the new Scheme contains general introductory provisions, including definitions of terms used in the Scheme.

The new Scheme is available to all firefighters employed by fire and rescue authorities in Wales, whether whole-time or part-time and whether regular, retained or volunteer, who satisfy one of the eligibility conditions set out in Part 2 of the Scheme. Part 2 also deals with other classes of membership of the Scheme.

Part 3 makes provision for the payment of pensions to firefighter members. It introduces Annex 1, which provides for the calculation of ill-health pensions.

Part 4 deals, in Chapter 1, with pensions for surviving spouses, civil partners and nominated partners and, in Chapter 2, with pensions for children.

Part 5 provides for the payment of death grants and post-retirement death grants.

Part 6 deals with pension-sharing on divorce.

Part 7 contains provisions relevant to firefighters who serve in the armed forces.

Part 8, to which Annex 2 to the Scheme is relevant, provides for the determination of questions and appeals arising under the Scheme.

Part 9 deals with review, withdrawal and forfeiture of awards.

Part 10 contains provisions about qualifying service and pensionable service.

Part 11 deals with pensionable pay, pension contributions and the purchase of additional service.

Part 12 provides for transfers into and out of the Scheme.

Part 13 deals with the accounting aspects of the Scheme, including the operation of each fire and rescue authority’s Firefighters' Pension Fund.

Part 14 provides for the payment of awards.

Part 15 contains miscellaneous provisions, including provisions about annual benefit statements (rule 4).

The new Scheme differs from the 1992 Scheme in the following major respects:

• (a) it is open to retained and volunteer firefighters as well as regular firefighters;

• (b) pensions can be paid to a nominated partner as well as a spouse or civil partner;

• (c) the normal retirement age will be sixty; under the 1992 Scheme it is fifty five (with some exceptions);

• (d) the age at which deferred pensions will normally be paid will be sixty five; under the 1992 Scheme it is sixty;

• (e) firefighter members may request early payment of pension from the age of fifty five, but that pension will be subject to actuarial reduction;

• (f) fire and rescue authorities may for economical, effective and efficient management reasons pay pensions from age fifty five without actuarial reduction; under the 1992 Scheme, payment could be made in similar circumstances from age fifty provided that the firefighter had at least twenty five years' pensionable service;

• (g) pension will accrue at 1/60th per year. A firefighter member will be able to accrue more than forty years' pensionable service;

• (h) a firefighter member will be able to commute up to a quarter of that member’s pension for a lump sum and there will be a single commutation factor regardless of age or sex with each £1 of pension commuted providing a lump sum of £12;

• (i) enhancements for the higher tier ill-health pension will be based on a formula where accrued pensionable service is increased by 2% and then multiplied by the amount of prospective service to the normal retirement age. This will ensure that enhancements are more evenly graduated than under the 1992 Scheme;

• (j) where a firefighter member is subject to a reduction in pay because of a change in role the member will qualify for a split pension. At the point of reduction the first pension will be closed and therefore based on the higher pay rate and a new pension started. When the member retires both pensions will be payable;

• (k) the death grant when a firefighter member dies in service will be three times pensionable pay at the date of death; under the 1992 Scheme it is two times pensionable pay;

• (l) any pension paid to an adult survivor who is twelve or more years younger than the firefighter member will be reduced by 2.5% for every year or part year above the twelve years, up to maximum of 50%; there is no such restriction under the 1992 Scheme;

• (m) the member’s contribution rate will be 8.5% under the 1992 Scheme; for members who joined before 6 April 2006, the rate was 11%.

Service transferred from the 1992 Scheme will be transferred at a special rate during up to and including 28 April 2007.

A regulatory appraisal has been carried out in connection with this Order and is available from the Fire and Rescue Branch, Community Safety Division, National Assembly for Wales, Rhydycar, Merthyr Tydfil, CF48 1UZ (telephone 01685 729000).

Footnotes

[^f00001]: 2004 c. 21.

[^f00002]: S.I. 1992/129. The Scheme was made under section 26 of the Fire Services Act 1947 (c. 41). The 1947 Act was repealed by section 52 of, and Schedule 2 to, the Fire and Rescue Services Act 2004, but the Scheme was renamed as Firefighters' Pension (Wales) Scheme and continued in force by articles 3 and 4 of the Fire and Rescue Services Act 2004 (Firefighters' Pension Scheme) (Wales) Order 2004 (S.I. 2004/2918)(W.257).

[^f00003]: Firefighters' Pensions Funds were established under Part LA of the Scheme set out in Schedule 2 to the Firemen’s Pension Scheme Order 1992 (S.I. 1992/129). Part LA was inserted by S.I. 2007/1072 (W.110).

[^f00004]: 1998 c. 38.

[^f00005]: See Schedule 2 to S.I.1992/129. The Scheme was made under section 26 of the Fire Services Act 1947 (c. 41). The 1947 Act was repealed by section 52 of, and Schedule 2 to, the Fire and Rescue Services Act 2004, but the Scheme was renamed as Firefighters' Pension (Wales) Scheme and continued in force by articles 3 and 4 of the Fire and Rescue Services Act 2004 (Firefighters' Pension Scheme) (Wales) Order 2004 (S.I. 2004/2918).

[^f00006]: 1993 c. 48.

[^f00007]: 1999 c. 30.

[^f00008]: 1996 c. 18. Sections 75A and 75B were inserted by section 3 of the Employment Act 2002 (c. 22).

[^f00009]: S.I. 2007/1073 (W.111).

[^f00010]: 1993 c. 48. As to “guaranteed minimum pension” see section 8(2).

[^f00011]: The Faculty of Occupational Medicine is a registered charity no. 1035415.

[^f00012]: S.I. 2003/1250, to which there is an amendment not relevant to this Order.

[^f00013]: 1996 c. 18; sections 71 and 73 were substituted by section 7 of, and Part 1 of Schedule 4 to, the Employment Relations Act 1999 (c. 26) and amended by section 17 of the Employment Act 2002 (c. 22).

[^f00014]: S.I. 2002/2788.

[^f00015]: Section 101B was inserted by section 37 of the Welfare Reform and Pensions Act 1999 (c. 30).

[^f00016]: 1995 c. 26.

[^f00017]: The document is accessible at http://www/lge.gov.uk/conditions/firefighters/content/document s/fire service rolemaps.pdf.

[^f00018]: 1995 c. 26. See section 126 of that Act.

[^f00019]: 2004 c. 12. See also Schedule 36 to the Finance Act 2004, amended by the Finance Act 2005(c. 7), Schedule 10.

[^f00020]: See rule 3 of Part 1.

[^f00021]: 1971 c. 56.

[^f00022]: As to “the lump sum rule” see section 166 of the Finance Act 2004 (c. 12). As to the commutation limit see paragraph 7(4) of Part 1 of Schedule 29 to that Act.

[^f00023]: Paragraphs 16A to 16C were inserted by the Finance Act 2005 (c. 7), Schedule 10, paragraph 28.

[^f00024]: S.I. 2000/1054, amended by S.I. 2000/2691.

[^f00025]: 1996 c. 14.

[^f00026]: 1980 c. 9.

[^f00027]: See, as to pension payments, regulation 5 of the Reserve Forces (Call-out and Recall)(Financial Assistance) Regulations 2005 (S.I. 2005/859).

[^f00028]: See rule 3 of Part 1.

[^f00029]: 1995 c. 26. The arrangements that apply for the purposes of the Scheme take the form of a disputes resolution procedure. The procedure is set out in Fire Service Circular 2/1997 issued by the Home Office on 4 February 1997.

[^f00030]: S.I. 1996/1270.

[^f00031]: 1911 c. 28, 1920 c. 75, 1939 c. 121, 1989 c. 6.

[^f00032]: See rule 4 of Part 2.

[^f00033]: 1992 c. 4 .

[^f00034]: See section 93(1)(a) of the Pension Schemes Act 1993 (c. 48).

[^f00035]: 2000 c. 8 to which there are amendments not relevant to this Order.

[^f00036]: 1985 c. 6; section 736 was substituted for section 736 as originally enacted by section 144(1) of the Companies Act 1989 (c. 40).

[^f00037]: See section 169(2) of the Finance Act 2004 (c. 12).

[^f00038]: See section 169(2) of the Finance Act 2004 (c. 12).

[^f00039]: 1995 c. 26.

[^f00040]: S.I. 1996/1270.

[^f00041]: 2000 c. 8 to which there are amendments not relevant to this Order.

[^f00042]: See Part LA of the 1992 Scheme, inserted by S.I. 2007/1074 (W.112).

[^f00043]: 2004 c. 23. See regulations 7 and 9 of the Accounts and Audit (Wales) Regulations 2005 (S.I. 2005/368) (W.34).

[^f00044]: 2004 c. 23.

[^f00045]: 2004 c. 12.

[^f00046]: At the time of making this Order, the sum is £5,000 (Administration of Estates (Small Payments) (Increase of Limit) Order 1984 (S.I. 1984/539).

[^f00047]: 1965 c. 32.

[^f00048]: Subsection (2B) was inserted by section 136(3) of Pensions Act 1995 c. 26.