Paragraph 6 Amendment of Part 11

Part 11 (pensionable pay, pension contributions and purchase of additional service) is amended as follows.

In paragraph (9) of rule 2 (final pensionable pay), at the end, insert “or, if a notice has been given under rule 5B(19), set out in that notice”.

After rule 5A (purchase of service during the limited period), insert—

“Purchase of service during the extended limited period

5B.

(1)

A person who satisfies the conditions specified in paragraph (2) may, in accordance with the following provisions of this Chapter, elect to pay pension contributions in respect of the person’s service during the extended limited period.

(2)

The conditions are that—

(a)

the person is a special member or is entitled to join this Scheme as a special member;

(b)

the service is—

(i)

as a retained firefighter;

(ii)

as a regular firefighter where the person took up employment after 5th April 2006 as a regular firefighter immediately after the termination of the person’s employment as a retained firefighter, or

(iii)

with the agreement of the authority, as a regular firefighter, but not as a retained firefighter, where the person had been employed by an authority as a retained firefighter and then required by that authority after 5th April 2006 to remain in employment as a retained firefighter whilst taking up employment as a regular firefighter, and

(c)

paragraph (3) does not apply to the person.

(3)

This paragraph applies to a person if—

(a)

the person first took up employment as a retained firefighter on or after 1st July 2000, and

(b)

the authority notified the person of their entitlement to join this Scheme as a special member under rule 5A(4) of this Part and, if required to do so, the authority complied with the requirements in rule 5A(13) or rule 6C(4) (election to purchase service: provisional enrolment) of this Part.

(4)

The authority must determine whether paragraph (3)(b) applies in accordance with guidance issued by the Secretary of State from time to time, and must notify those persons to whom they determine that paragraph (3) applies within three months of the second initial date.

(5)

Where a person disagrees with an authority’s determination under paragraph (4), that person may, by written notice given to the authority within 28 days of receipt of the determination, require the authority to deal with the disagreement by means of the arrangements implemented by them pursuant to the requirements of section 50 of the Pensions Act 1995^f1 (resolution of disputes) and the Occupational Pension Schemes (Internal Dispute Resolution Procedures Consequential and Miscellaneous Amendments) Regulations 2008^f2.

(6)

The period of service referred to in paragraph (1) does not, subject to rule 11A (transfer of accrued rights under the 1992 Scheme to special membership of this Scheme) or 18 (converting membership from standard membership to special membership – special pensioner members) of Part 12, include any period of service in respect of which the person paid—

(a)

pension contributions under the 1992 Scheme;

(b)

pension contributions under this Scheme as a standard member;

(c)

special pension contributions under this Scheme as a special member in relation to service during the limited period which the person elected to purchase following an application under rule 5A of this Part.

(7)

Where paragraph (1) applies—

(a)

subject to rule 6A(11) of this Part, mandatory special period pension contributions must be paid in respect of the person’s service during the mandatory special period, and

(b)

mandatory special period pension contributions must be paid for the period required by rule 6A(12) of this Part, where a person has elected to transfer their accrued rights in the 1992 Scheme to their special membership.

(8)

Subject to paragraph (14), within three months of the second initial date, the authority must use reasonable endeavours to notify that they may be so entitled all those existing employees and former employees employed during the special employment period who either—

(a)

may be entitled to join this Scheme as a special member, or

(b)

are existing special members who may be entitled to purchase service during the extended limited period.

(9)

A person may apply to the authority by which the person was employed during the special employment period for a statement of—

(a)

the service in respect of which the person may become entitled to pay contributions under this rule, and

(b)

the mandatory special period pension contributions which the person would be required to pay in respect of that service.

(10)

Subject to paragraph (14), an application must be made—

(a)

within six months of receiving the notification in paragraph (8), or

(b)

if no such notification has been received, within nine months of the second initial date.

(11)

An application under paragraph (9) must be in writing and must state—

(a)

the date on which the applicant took up employment as a retained firefighter;

(b)

where the applicant has left that employment, the date on which the applicant left;

(c)

where the applicant took up employment as a regular firefighter, the date on which the applicant took up that employment;

(d)

if the applicant joined this Scheme as a standard member or joined the 1992 Scheme, the date on which the applicant joined the Scheme and, if it was the case, the date on which the applicant made an election not to pay pension contributions under rule 5 of Part 2 of this Scheme or under rule G3 of the 1992 Scheme (election not to make pension contributions) (as the case may be), and

(e)

if the applicant has already joined this Scheme as a special member, the date on which the applicant joined this Scheme and the period of service the person has already elected to purchase under rule 6A of this Part.

(12)

An authority must determine a person’s service and pensionable pay during the extended limited period, and the person’s special pension contributions payable in respect of such service, in accordance with rule 5C of this Part.

(13)

Subject to paragraph (14), within three months of receiving an application under paragraph (9), the authority must give the applicant a notice setting out—

(a)

the period of service during the extended limited period which the applicant may purchase;

(b)

the amount of special pension contributions payable in respect of the mandatory special period;

(c)

the amount of special pension contributions payable in respect of the remainder of the person’s service during the extended limited period, and

(d)

the pensionable pay and in appropriate cases the final pensionable pay which the authority have determined was paid during the extended limited period.

(14)

Where it is not reasonably practicable to comply with any requirement set out in this rule within the period specified, the authority or applicant, as the case may be, must comply with that requirement as soon as reasonably practicable after the end of that period, but this is subject to rule 6B(13) of this Part (date by which election to purchase special service will cease to take effect).

(15)

In a case where a member makes an application under paragraph (10)(b) after 31st March 2025, the authority must consult the Scheme Actuary and the Secretary of State when preparing the notice under paragraph (13).

Purchase of service during the extended limited period – supplemental provision

5C.

(1)

This rule applies for the purposes of determining a person’s service and pensionable pay during the extended limited period, and the person’s special pension contributions payable in respect of such service.

(2)

In relation to that part of a person’s service during the extended limited period which falls on or after 1st July 2000, an authority must determine that period of the person’s service and pensionable pay during that period in accordance with paragraphs (7)-(12) of rule 5A of this Part, but for the purposes of this paragraph, references to “the limited period” in those paragraphs are to be read as if they were references to “the extended limited period”.

(3)

In relation to that part of a person’s service during the extended limited period before 1st July 2000, an authority must determine that period of the person’s service and pensionable pay during that period in accordance with paragraphs (4)-(9) of this rule.

(4)

An authority may determine the period of the person’s service and pensionable pay during the extended limited period from their records.

(5)

Where an authority are not able to determine the period of the person’s service or pensionable pay during the extended limited period from their records, the person may provide the authority with documents to assist them to determine the person’s period of service and pensionable pay during the extended limited period and the authority may determine the period of the person’s service and pensionable pay from those documents.

(6)

The authority must determine the person’s period of pensionable service during the extended limited period and, in particular, may determine that the person has no service during the extended limited period if the authority does not hold records of that person’s service for that period, and the person cannot provide the authority with the necessary documents.

(7)

Where the authority do not hold records of that person’s pay for that period, and the person cannot provide the authority with the necessary documents, the authority must—

(a)

determine the person’s pensionable pay for that period from the records which they hold and their local experience, or

(b)

apply the default assumption if a determination under sub-paragraph (a)—

(i)

is not possible, or

(ii)

is a determination that the person’s retained pensionable pay for the period was less than 25% of the pensionable pay of a whole-time regular firefighter employed in a similar role with equivalent qualifying service.

(8)

In paragraph (7), the default assumption is that the person’s retained pensionable pay for the period was equal to 25% of the pensionable pay of a whole-time regular firefighter employed in a similar role with equivalent qualifying service.

(9)

Where the authority estimate the person’s pensionable pay under paragraph (7) and do not hold records of that person’s rank, and the person cannot provide the authority with documents to assist them to determine the person’s rank, the authority may assume that the person held the rank of firefighter for the purposes of estimating pensionable pay.

(10)

The authority must calculate the amount of the special pension contributions payable in respect of special pensionable service during the extended limited period by applying a rate determined by the Scheme Actuary having regard to the rate required by paragraph (1A) of rule 3 (pension contributions) for the appropriate period for the person’s pensionable pay.”.

In the heading of rule 6A (election to purchase service during the limited period), after “the limited period” insert “or the extended limited period”.

In rule 6A—

In the heading of rule 6B (election to purchase service during the limited period: supplemental provision), after “the limited period” insert “or the extended limited period”.

In rule 6B—

After rule 6C, insert—

“Purchase of service during the extended limited period – total pensionable service

6D.

(1)

This rule applies where—

(a)

a person joined this Scheme as a special member or as a standard member in respect of service which that person could otherwise reckon as special pensionable service and purchased service following an application under rule 5A of this Part;

(b)

that person purchased additional service under rule 5 of this Part at the same time as the election under rule 5A;

(c)

that person elects to purchase service in respect of the extended limited period under rule 5B of this Part, and

(d)

the addition of the period of service in respect of the extended limited period to the member’s special pensionable service (within the meaning in rule 2A(1) of Part 10) would result in a period exceeding 30 years.

(2)

The authority must revise the election to purchase additional service under rule 5, in accordance with paragraph (3), so that the total special pensionable service does not exceed 30 years by the member’s normal retirement age.

(3)

The period by which the total special pensionable service would exceed 30 years (“the excess service”) at the member’s normal retirement age is to be deducted from the additional service which the member elected to purchase under rule 5.

(4)

Any contributions paid by the member in respect of the excess service are to be deducted from the contributions due in respect of the service in respect of the extended limited period purchased under rule 5B.

(5)

Where the contributions paid by the member in respect of the excess service exceed the contributions due in respect of the service purchased under rule 5B, the authority is to refund the excess contributions to the member.

Compensation deduction

6E.

(1)

The authority must deduct from a special member’s mandatory special period pension contributions an amount calculated in accordance with this rule (the “compensation deduction”) where a special member—

(a)

elects to pay mandatory special period pension contributions in respect of the special member’s service during the mandatory special period in accordance with rule 6A of this Part, in relation to service purchased following an application under rule 5B of this Part, and

(b)

provides the statement referred to at paragraph (5).

(2)

The compensation deduction must be calculated on the advice of the Scheme Actuary and must be equal to the amount of tax relief on mandatory special period pension contributions to which the special member would have been entitled in the compensation scenario described in paragraph (3) (“the compensation scenario”), together with interest calculated at the past interest rate and applied to that amount of tax relief as described under rule 6A(13), taking into account any tax relief on mandatory special period pension contributions that has been received through PAYE.

(3)

The compensation scenario means that it is assumed that the special member—

(a)

had been entitled to join this Scheme as a special member on the first day of the mandatory special period;

(b)

from that date, had paid the special period pension contributions in accordance with rule 3(1A) of Part 11 (pension contributions), deducted from each instalment of the member’s pensionable pay in accordance with rule 3(2) of that Part, and

(c)

tax relief on the special period pension contributions at the rate set out in paragraph (4) had been applied at the time each instalment of pensionable pay had been paid.

(4)

The rate of tax relief which must be applied in the compensation scenario is—

(a)

where a special member establishes, with such supporting evidence as the authority may reasonably require, that the rate of tax relief which would have applied to the special member in the compensation scenario is a higher tax rate, that higher tax rate, or

(b)

in any other case, the basic rate of tax that would have applied to the special member during the mandatory special period.

(5)

In order to be entitled to the compensation deduction the special member must provide a statement to the authority that the special member will not claim tax relief in respect of the mandatory special period pension contributions.”.