The Firemen’s Pension Scheme (Amendment) Order 1990

This order may be cited as the Firemen’s Pension Scheme (Amendment) Order 1990 and shall come into force on 1st October 1990.

In this Order “the 1973 Scheme” means the scheme set out in Appendix 2 to the Firemen’s Pension Scheme Order 1973^f1.

The Schedule to this Order has effect for varying the 1973 Scheme.

Part II of the Schedule, except paragraphs 2 and 14(a), has effect as from 6th April 1988.

A reference in the Schedule to a numbered article or Schedule is a reference to the article or Schedule identified by that number in the 1973 Scheme.

This article applies to a person—

A protected benefit is one which is being paid or may become payable by a fire authority, under the 1973 Scheme, to or in respect of a person who was employed as a regular fireman but ceased to be so employed, or died, before 1st October 1990.

A person to whom this article applies may, by giving written notice to the fire authority within 3 months after 1st October 1990, elect that the relevant variation shall not apply in relation to the protected benefit.

after the definition of “appointed day” insert:

• ““approved scheme” means superannuation arrangements falling within article 71A(2);”;

after the definition of “brigade” insert:

• ““cash equivalent” means a cash equivalent mentioned in sub-paragraph (1) of paragraph 12 of Schedule 1A to the Social Security Pensions Act 1975^f1,and “part cash equivalent” means the cash equivalent of any part of the benefits described in that sub-paragraph which is prescribed under sub-paragraph (2A) (continuation in employment after termination of pensionable service);”;

after the definition of “child” insert:

• ““club scheme” means superannuation arrangements falling within article 71A(2)(a), (b) or (e);”; and

after the definition of “injury” insert:

• ““personal pension scheme” has the meaning given in section 84(1) of the Social Security Act 1986;”.

in paragraph (4) for the words after “pensionable service” substitute

“calculated —

(a)

if he became a regular fireman before 1st January 1986 and the former superannuation arrangements were not a club scheme, in accordance with paragraphs 1 to 4 of Part II of Schedule 9 and Part III of that Schedule, and

(b)

in any other case, in accordance with paragraph 5 or 6 of Part II of Schedule 9.”; and

for paragraph 5(b)(ii) substitute —

“(ii)

if a transfer value such as is mentioned in paragraph (1)(c) were paid to the fire authority its amount would be at least A × B, where—

A

is the annual amount of the pension to which he would in that event be entitled under article 91A, and

B

is the factor ascertained from the Table below by reference to his age at the date on which the authority are requested to accept the transfer value.

TABLE

Age	Factor
29 or under	8
30 to 39	9
40 to 49	10
50 or over	12

”

in paragraph (1) delete the words “subject to paragraph (3),”;

in paragraph (2) for the words “Parts I and III of Schedule 9” substitute “Part 1A of Schedule 9”;

delete paragraph (3); and

after paragraph (4) insert:

“(5)

Notwithstanding anything in this article, a transfer value may not be paid if the fireman has acquired a right to a cash equivalent, unless —

(a)

the service to which the cash equivalent relates includes service before 1st October 1990, and

(b)

the right has been exercised by requiring the whole of the cash equivalent to be paid to the person responsible for the management of an approved scheme which is not a club scheme.

(6)

Notwithstanding anything in this article, a transfer value may not be paid if the fireman —

(a)

has acquired a right to a part cash equivalent, and

(b)

would on taking that right remain entitled to a deferred pension.

(7)

In this article references to retirement include references to electing under article 56A(1) not to pay pension contributions.”.

in the heading delete the words “or 71A”,

in paragraph 1(1) delete the words “or 71A”, and

delete paragraph 10.

in paragraph 1(1) for the words “The period” substitute “Where article 52B(4)(a) applies, the period” and after the words “in accordance with” insert “this paragraph and paragraphs 2, 3 and 4 of”; and

after paragraph 4 insert:

“5

(1)

Where article 52B(4)(b) applies and the transfer value was received from the person responsible for the management of a club scheme, the fireman is entitled to reckon as pensionable service a period equal to the period that would enable the fire authority to pay a transfer value, calculated on the cash equivalent basis, of the same amount as the one received.

(2)

In calculating the period any sum representing interest that is included in the transfer value received is not to be taken into account.

6

(1)

Where article 52B(4)(b) applies and the transfer value was received from the person responsible for the management of a personal pension scheme or an approved scheme which is not a club scheme, the fireman is entitled to reckon as pensionable service the period specified in sub-paragraph (2).

(2)

The period is —

$$\genfrac{}{}{0.1ex}{}{\mathrm{A}+\mathrm{B}+\mathrm{C}}{\mathrm{D}+\mathrm{E}}\text{years,}$$

where —

1. A

   is the amount of the transfer value divided by the market level indicator for the month in which the material date occurred,

2. B

   is any amount in respect of graduated National Insurance modification notified by the person paying the transfer value,

3. C

   is 52 times the amount in respect of the fireman’s guaranteed minimum multiplied by the minimum pension factor,

4. D

   is 1/45th of the rate of his annual pensionable pay at the material date multiplied by the pension factor, and

5. E

   is 1/90th of the rate of his annual pensionable pay at the material date multiplied by the widow’s or widower’s pension factor.

(3)

The market level indicator for a month is to be ascertained from tables provided by the Government Actuary by reference to —

(a)

the person’s age at the material date, and

(b)

the average gross redemption yield on the first working day of the month, ascertained from the FT-Actuaries Share Indices published in the Financial Times newspaper, on British Government index-linked stocks redeemable after 5 years or more, assuming inflation at 5 per cent (interpolating where that yield is not an integral percentage).

(4)

The amount in respect of the fireman’s guaranteed minimum is F + G, where —

F

is so much of his guaranteed minimum as is attributable to service before 6th April 1988, and

G

is half of so much of it as is attributable to service after 5th April 1988.

(5)

The material date —

(a)

if the transfer value was received within 12 months after the date on which the person became a regular fireman, is that date, and

(b)

in any other case, is the date on which the transfer value was received.

(6)

The factors are to be ascertained from tables provided by the Government Actuary by reference to the person’s age on the material date.”.

in paragraphs (1) and (4) for the words “shall be entitled” substitute “shall, unless immediately before his retirement an election under article 56A(1) not to pay pension contributions had effect, be entitled”; and

in paragraphs (2) and (4) for the words “5 years'” substitute “2 years'”.

in paragraph (1) for the words “shall be entitled” substitute “shall, unless immediately before his retirement an election under article 56A(1) not to pay pension contributions had effect, be entitled”; and

in paragraph (2)(a) for the words “5 years'” substitute “2 years'”.

in paragraph (1) after the words “ceased to be a member of a brigade” insert “, or who has elected under article 56A(1) not to pay pension contributions”;

in paragraph (2) after the word “brigade” insert “, or, as the case may be, when the election under article 56A(1) takes effect”; and

in paragraph (3) after the words “ceased to be a member of a brigade” insert “or has, within 3 months of his last becoming a regular fireman, elected under article 56A(1) not to pay pension contributions”.

for the words “five years”, wherever occurring, substitute “2 years”; and

at the end of the proviso insert “nor to the extent, if any, that it comprises a period during which an election under article 56A(1) not to pay pension contributions had effect”.

after paragraph (1) insert:

“(1A)

The fire authority may also consider as mentioned in paragraph (1) in the case of a person who —

(a)

has elected under article 56A(1) not to pay pension contributions, and

(b)

is entitled under article 16 to a deferred pension, and

(c)

has begun to receive payment on account of the pension on being required to retire under article 97 (compulsory retirement on grounds of incapacity).”;

in paragraph (2) after the words “ill-health pension” insert

“or, in a case falling within paragraph (1A), may determine that payment of the deferred pension shall be suspended, that is to say, that the pension shall not be payable in respect of any period before —

(a)

his 60th birthday, or

(b)

if sooner, his again becoming permanently disabled”;

in paragraph (3) after the word “terminated” insert “, or payment of a deferred pension is suspended,”, and after the word “termination”, wherever occurring, insert “or suspension”; and

in paragraph (4) after the words “pension is terminated” insert “, or payment of a deferred pension is suspended,”,and for the words “that pension” substitute , “an ill-health pension”.

in paragraph (1) after the words “regular fireman” insert “by whom pension contributions have at any time been payable under article 56”; and

in paragraph (2) for the words “or 23” substitute “, 23 or 25”.

in the proviso to paragraph (1) —

in paragraph (5) for the words after “pensionable pay” substitute

“is —

(a)

in the case of an award under article 15 (injury awards), 23 (widow’s special award), 27 (widow’s award where no other award payable), 31 (dependent relative’s special pension), 34 (child’s special allowance) or 35 (child’s special gratuity), the date of his last day of service as a regular fireman, and

(b)

in any other case, the date of his last day of service in a period during which pension contributions were payable under article 56.”.

for the words “cease to be payable on retirement” substitute

“cease to be payable —

(a)

on retirement, or

(b)

if he elects under Article 56A(1) not to pay pension contributions, on the date on which the election takes effect”; and

after the words “Schedule 1” insert “, and if an election made under article 56A(1) is cancelled any contributions that were payable under this article immediately before the election took effect become payable again from the date on which it ceases to have effect”.

in paragraph (1) after the words “serving as a regular fireman” insert “and paying pension contributions under article 56”;

after paragraph (2)(b) insert:

“or

(c)

the date on which any election under article 56A(1) not to pay pension contributions takes effect,”; and

in paragraph (4) for the words from “and who” to “as such, the” substitute

“and —

(a)

having retired with an ill-health pension before his retirement date, resumes service as such, or

(b)

having elected under article 56A(1) not to pay pension contributions, cancels that election,

the”.

in paragraph (1) for the words from “save that where” to “article 80G” substitute

“save that where —

(a)

he had discontinued payment on grounds of financial hardship under article 80G, or

(b)

he had made an election under article 56A(1) which was subsequently cancelled under article 56A(5),”;

after paragraph (1) insert —

“(1A)

Paragraph (1) does not have effect in relation to a regular fireman who has at any time made an election under article 56A(1) which has not been cancelled under article 56A(5).”; and

in paragraph (2) —

in paragraph (3) for the words from “a widow” to “birthday, her” substitute “a person entitled to a pension under paragraph (4)(b) or (c) remarries before attaining insured pensionable age, the”;

in paragraph (4)(b) for the word “where” substitute “in the case of a man, where”; and

after paragraph (4)(b) insert:

“and

(c)

in the case of a woman who has died after 5th April 1988 leaving a widower, then, unless any pension to which she had become entitled has been so withdrawn, the widower is entitled to a pension at a rate equal to one half of that part of her guaranteed minimum which is attributable to earnings factors for the tax year 1988—89 and subsequent tax years.”.

in paragraph 2 —

in paragraph 3(1) after the words “qualifying injury” insert “or, where an election under article 56A(1) had effect, by the amount of any other pension which would otherwise have been so calculated”.

after the words “shall not apply” insert “where an election under article 56A(1) had effect at the time of the death, nor shall it apply”; and

for the words “five years” substitute “2 years”.