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The Firefighters' Pension Scheme (Scotland) Order 2007

Type Scottish-Statutory-Instrument

Publication 2007-03-07

State In force

Jurisdiction Scotland

Department Queen's Printer for Scotland

Source legislation.gov.uk

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is entitled to an award under rule 2 of Part 3 (award on ill-health retirement).

(2) Where a reservist dies–

(a) during the reservist’s forces period;

(b) from the effects of an injury which rendered the reservist incapable of performing the duties of a firefighter; or

an award shall be payable in accordance with paragraphs (3) and (4).

(3) Where the reservist’s death–

(a) is not the result of a qualifying injury; and

(b) occurs during the reservist’s forces period,

a survivor’s pension under Chapter 1 of Part 4 is payable to the reservist’s spouse, civil partner or nominated partner (as the case may be) as if the reservist were a firefighter member entitled as mentioned in rule 1(1)(a) of that Part.

(4) Where the reservist’s death occurs during the reservist’s forces period and is not the result of a qualifying injury–

(a) a child’s pension is payable under Chapter 2 of Part 4 as if–

(i) the reservist were a firefighter member who died while employed by an authority; and

(ii) paragraphs (1)(c), (2) and (3) of rule 8 of that Part were omitted; and

(b) a death grant is payable under rule 1 of Part 5.

Reservists who do not resume employment with their former authority

4

A reservist who does not resume employment with the reservist’s former authority within one month of the end of the reservist’s forces period shall be treated as having left the authority’s employment at the end of the reservist’s forces period.

PART 8 — DETERMINATION OF QUESTIONS AND APPEALS

Interpretation of Part 8

1

In this Part–

“IQMP” means independent qualified medical practitioner; and

“rule 3 response” means an IQMP’s response under rule 3(2) of this Part and the provisions of Annex 2.

Determinations and decisions by Scottish fire authority

2

(1) The question whether a person is entitled to any and, if so, what awards, shall be determined in the first instance by the authority.

(2) Subject to paragraph (6), before deciding, for the purpose of determining that question or any other question arising under this Scheme–

(a) whether the person is disabled;

(b) whether any disablement is likely to be permanent;

(c) whether the person has become capable of performing any duties of the role from which the person retired on grounds of ill-health;

(d) whether the person is or has become capable of undertaking regular employment; or

(e) any other issue wholly or partly of a medical nature,

the authority shall obtain the written opinion of an IQMP selected by them.

(3) The IQMP must certify in the IQMP’s opinion under paragraph (2)–

(a) that the IQMP has not previously advised, or given an opinion on, or otherwise been involved in, the particular case for which the opinion has been requested; and

(b) that the IQMP is not acting, and has not at any time acted, as the representative of the employee, the authority, or any other party in relation to the same case.

(4) An IQMP’s opinion under paragraph (2) shall be binding on the authority unless it is superseded by his or her rule 3 response or the outcome of an appeal under rule 4 of this Part.

(5) Where, in consequence of an opinion given under paragraph (2), an employee has retired on grounds of ill-health, the IQMP who gave the opinion may, if so requested by the authority for the purposes of a review under rule 1(1) of Part 9, give a further opinion.

(6) If–

(a) the person concerned wilfully or negligently fails to submit to medical examination by the IQMP selected by the authority; and

(b) the IQMP is unable to give an opinion on the basis of the medical evidence available to the IQMP,

the authority may make a decision on the issue–

(i) on such other medical evidence as they think fit; or

(ii) without medical evidence.

(7) Within 14 days of making a decision or determination under this rule, the authority shall–

(a) give written notice of it to the person concerned; and

(b) in the case of a decision on an issue wholly or partly of a medical nature, unless paragraph (6) applies, supply the person with a copy of the opinion obtained under paragraph (2).

Review of medical opinion

3

(1) Where–

(a) new evidence on an issue wholly or partly of a medical nature is presented to the authority by a person in respect of whom a decision has been made under rule 2 of this Part;

(b) the authority receive that evidence–

(i) where a copy of an opinion was supplied in accordance with paragraph (7) of rule 1 of this Part, within 28 days of the receipt by that person of that copy; and

(ii) in any other case, within 28 days of the receipt by that person of notice of the authority’s decision; and

(c) the authority and the person concerned agree that the IQMP should be given the opportunity of reviewing his or her opinion in the light of the new evidence,

the authority shall send a copy of the new evidence to the IQMP and invite the IQMP to reconsider the IQMP’s opinion.

(2) An IQMP’s response to an invitation under paragraph (1) shall be in writing.

(3) An IQMP’s rule 3 response shall be binding on the authority unless it is superseded by the outcome of an appeal under rule 4 of this Part.

(4) As soon as reasonably practicable after receiving a rule 3 response, the authority shall reconsider their decision.

(5) Within 14 days of that reconsideration, the authority shall–

(a) give written notice to the person concerned that they have confirmed their decision or revised their decision (as the case may be);

(b) if they have revised their decision, supply the person with written notice of the revised decision; and

Appeals against decisions based on medical advice

4

(1) A person who wishes to appeal against an authority’s decision on an issue of a medical nature may do so to a Board of medical referees in accordance with the provisions of Annex 2.

(2) Subject to paragraph (3), where a decision–

(a) is made with regard to an opinion obtained under rule 2(2) of this Part or medical evidence relied on as mentioned in rule 2(6) of this Part; or

(b) is reconsidered under rule 3(4) of this Part with regard to a rule 3 response,

the authority shall, within 14 days of making, confirming or revising the decision (as the case may be), send to the person concerned the documents mentioned in paragraph (4).

(3) Nothing in paragraph (2) requires the supply of documents that have already been supplied under rule 2(7) or 3(5) of this Part.

(4) The documents are–

(a) a copy of the opinion, rule 3 response or evidence (as the case may be);

(b) an explanation of the procedure for appeals under this rule; and

(c) a statement that, if the person wishes to appeal against the authority’s decision on an issue of a medical nature, the person must give written notice to the authority, stating the person’s name and address and the grounds of appeal, not later than 28 days after the person receives the last of the documents required to be supplied to the person under this paragraph, or within such longer period as the authority may allow.

Appeals on other issues

5

Where–

(a) a person disagrees with an authority’s determination under rule 2 of this Part; and

(b) the person’s disagreement does not involve an issue of a medical nature,

the person may, by notice in writing 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^f00028 and the Occupational Pension Schemes (Internal Dispute Resolution Procedures) Regulations 1996[^f00029].

PART 9 — REVIEW, WITHDRAWAL AND FORFEITURE OF AWARDS

Review of ill-health pension

1

(1) So long as a person–

(a) has been in receipt of an ill-health pension for less than 10 years; and

(b) is under state pensionable age,

the authority shall consider, at such intervals as they think proper, whether the person has become capable–

(i) of performing any duty appropriate to the role from which the person retired on grounds of ill-health; and

(ii) of undertaking regular employment.

(2) The authority shall, at such intervals as they think proper, consider in relation to a person whose deferred pension is being paid early by virtue of rule 3(4) of Part 3 (early payment of deferred pension on permanent disablement), the same matters as they are required to consider in relation to persons of the description mentioned in paragraph (1).

Consequences of review

2

(1) If, on such consideration as is mentioned in rule 1(1) of this Part, it is found that a person who is in receipt of a higher tier ill-health pension has become capable of undertaking regular employment, the person’s entitlement to that pension shall cease with immediate effect.

(2) Subject to paragraph (3), a lower tier ill-health pension shall continue to be paid to a person who ceases to be entitled to a higher tier ill-health pension.

(3) If–

(a) on such consideration as is mentioned in rule 1(1) of this Part, it is found that a person who is in receipt of a lower tier ill-health pension has become capable of performing the duties appropriate to the role from which the person retired on grounds of ill-health; and

(b) the authority make the person an offer of employment in that role (“a paragraph (3)(b) offer”),

the person’s entitlement to a lower tier ill-health pension shall cease, with immediate effect, whether or not the person accepts or declines the offer.

(4) A person who accepts or declines a paragraph (3)(b) offer becomes entitled to a deferred pension under rule 3 of Part 3.

(5) If, on such consideration as is mentioned in rule 1(2) of this Part, it is found that a person whose deferred pension is being paid early has become capable of undertaking regular employment, the person’s entitlement to early payment of the deferred pension shall cease with immediate effect.

Withdrawal of pension during service as firefighter

3

(1) Subject to paragraph (2), the authority by which a pension under Part 3 is payable may withdraw the whole or any part of the pension for any period during which the person entitled to it is again employed as a firefighter by any authority.

(2) Where a person who is entitled to pensions under this Scheme in respect of both regular and retained service or volunteer service (whether from the same authority or from different authorities)–

(a) resumes regular service, but does not resume retained service or volunteer service; or

(b) resumes retained service or volunteer service, but does not resume regular service,

paragraph (1) applies only as regards the pension referable to the person’s previous retained service or, as the case may be, the person’s previous regular service.

(3) An authority may abate a pension to which a person is entitled under Part 3 so long as the person is employed (in whatever capacity) by any authority.

(4) A person who–

(a) is entitled to a pension under Part 3; and

(b) accepts an offer of employment with an authority (in whatever capacity),

shall, as soon as reasonably practicable after accepting that offer, give notice in writing to each authority by which a pension is payable to that person under Part 3, specifying the name of the person’s employing authority.

Withdrawal of early payment of deferred pension

4

A person who, on dismissal from an authority’s employment, becomes entitled to a deferred pension under rule 3 of Part 3, shall not be entitled to early payment of the deferred pension before reaching the age of 65, unless the authority by which the pension is payable determine otherwise.

Withdrawal of pension on conviction of certain offences

5

(1) Where paragraph (2) applies, the authority by which a pension under Part 3 or 4 is payable may withdraw the pension in whole or in part and permanently or temporarily as they think fit.

(2) This paragraph applies where–

(a) the pensioner has been convicted of an offence referred to in paragraph (3), and, in the case of a pension under Part 4, that the offence was committed after the death on which the pensioner became entitled to it; or

(b) that the pensioner has been convicted of an offence, committed in connection with the pensioner’s employment by an authority, which is certified by the Scottish Ministers–

(i) as gravely injurious to the interests of the State; or

(ii) as likely to lead to serious loss of confidence in the public service.

(3) The offences mentioned in paragraph (2)(a) are–

(a) an offence of treason; and

(b) one or more offences under the Official Secrets Acts 1911 to 1989[^f00030] for which the pensioner has been sentenced, on the same occasion–

(i) to a term of imprisonment of at least 10 years; or

(ii) to two or more consecutive terms amounting in aggregate to at least 10 years.

(4) The authority may, at any time and to such extent as they think fit–

(a) apply for the benefit of any dependant of the pensioner; or

(b) restore to the pensioner,

so much of any pension as has been withdrawn under this rule.

Forfeiture of award

6

A person who has been convicted of an offence under subsection (6) of section 34 of the Fire and Rescue Services Act 2004[^f00031] (acts or omissions for purposes of obtaining awards or other sums), forfeits the whole or part of an award or sum obtained by the person under this Scheme, as the authority think fit.

PART 10 — QUALIFYING SERVICE AND PENSIONABLE SERVICE

Qualifying service

1

For the purposes of this Scheme, the following periods are periods of a person’s qualifying service–

(a) the period during which the person is a firefighter member of the Scheme and for which the person receives pensionable pay;

(b) any period during which the person–

(i) is a firefighter member of the Scheme;

(ii) is on unpaid leave other than unauthorised absence;

(iii) has made an election under rule 4(1) of this Part; and

(iv) has paid such contributions as are required to be paid under that rule in respect of that period;

(c) in relation to the second pension under rule 7 of Part 3 (entitlement to two pensions), the period of qualifying service taken into account in calculating the first pension under that rule;

(d) any period of additional service purchased under Part 11;

(e) a period credited on acceptance of a transfer under Part 12;

(f) where the person was a member of the 1992 Scheme, the period of service used for determining the person’s eligibility for an award under that Scheme; and

(g) any period of service that may be credited to the firefighter member resulting from maternity, paternity or adoption leave.

Reckoning of pensionable service

2

(1) Subject to paragraph (6), for the purposes of this Scheme, a person’s pensionable service accrues as pension contributions are paid, and consists of–

(a) any period in respect of which the person has paid pension contributions as a member of this Scheme;

(b) any period of service taken into account for the purposes of an award under rule 3 (deferred pension) or rule 7 (entitlement to two pensions) of Part 3 where, on again taking up employment with an authority–

(i) the person becomes a member of the Scheme; and

(ii) in accordance with rule 4 of Part 3 (cancellation of deferred pension), the award under rule 3 or rule 7 is cancelled;

(c) any period which the person is entitled to reckon as pensionable service under rule 4 (reckoning of unpaid period of absence) or rule 5 (reckoning of maternity, paternity and adoption leave, etc) of this Part or under any of rules 5 to 9 of Part 11;

(d) any period of pensionable service taken into account for the purposes of an ill-health award under rule 2 of Part 3, other than any period included by way of enhancement, where–

(i) the award is cancelled under rule 2 of Part 9; and

(ii) the person remains a member of this Scheme (whether or not as an employee of the authority which made the award);

(e) if the person rejoins this Scheme on again taking up employment with an authority, any period of service as a former member of the Scheme, in respect of which–

(i) no pension has been paid;

(ii) no refund of pension contributions has been made; and

(iii) no transfer value payment has been made; and

(f) any period of service credited to the Scheme as pensionable service on acceptance of a transfer into the Scheme under Part 12.

(2) The pensionable service of a firefighter member may not exceed 45 years.

(3) A person may not–

(a) buy additional service if that would increase the person’s pensionable service to more than 40 years by normal retirement age; or

(b) transfer service into the Scheme if the aggregate of–

(i) that service;

(ii) the person’s prospective service to normal retirement age; and

(iii) any service already accrued in the Scheme,

would exceed 40 years by normal retirement age.

(4) Any additional period of service purchased or in the process of being purchased under Part 11 is reckonable as pensionable service; but where only a portion of the pension contributions payable in respect of a period of additional service have been paid, only the equivalent portion of the period is reckonable as pensionable service.

(5) Subject to paragraph (6), an additional period of service purchased or in the process of being purchased under Part 11 is to be taken into account for the purposes of determining–

(a) the amount of pension payable to the firefighter member or to the firefighter member’s survivors; and

(b) the amount of service a firefighter member has or may accrue in the Scheme.

(6) An additional period of service is not to be taken into account in assessing–

(a) the amount of the higher tier ill-health pension included in a higher tier ill-health award under Part 3; or

(b) the amount of a death grant under Part 5.

Non-reckonable service

3

The following periods are not reckonable as pensionable service–

(a) any period of unpaid leave, other than a period that is reckonable by virtue of rule 4 of this Part;

(b) any period of service that has been taken into account for the purposes of a pension under rule 3 of Part 3 (deferred pension) that has not been cancelled under rule 4 of that Part;

(c) any period of absence resulting from sickness or injury attributable to the person’s misconduct which the authority determine should be unpaid leave;

(d) any period of additional maternity, or adoption leave in respect of which the person entitled has declined to pay the required contributions; and

(e) any period of service that is pensionable service by virtue of any other provision of this Part.

Reckoning of unpaid period of absence

4

(1) A firefighter member may reckon as pensionable service all or part of a period of absence without pay if the firefighter member elects to pay the pension contributions that the firefighter member would have paid in accordance with Part 11 and the contributions the firefighter member’s employing authority would have paid if a notional funding system applied, in respect of that period if it had been a period of absence with pay.

(2) An election under paragraph (1) is to be made by notice in writing given to the employing authority not later than six months from the end of the period of unpaid leave for which contributions are due.

(3) An authority may treat as paid the employer’s pension contributions that would otherwise fall to be paid by the employee as a result of the firefighter member’s election as calculated under paragraph (1).

(4) Contributions falling to be paid by the employee under this rule must be paid within six months of the date on which the notice under paragraph (2) is given.

Reckoning of maternity, paternity and adoption leave, etc

5

(1) A female firefighter member is entitled to reckon as pensionable service any period of–

(a) paid maternity leave;

(b) unpaid ordinary maternity leave; and

(2) A firefighter member is entitled to reckon as pensionable service any period of–

(a) paternity leave;

(b) ordinary adoption leave;

(d) unpaid additional adoption leave in respect of which the firefighter member has paid pension contributions in accordance with rule 4 of Part 11.

(3) Where there is a period of pensionable service both before and after a period of maternity or adoption leave in respect of which a person is entitled to pay pension contributions but does not do so, those periods shall be treated for the purposes of this Scheme as if they were continuous.

Calculation of pensionable service

6

(1) Paragraphs (3) to (5) are subject to rule 2(2) and (3) of this Part.

(2) For the purposes of paragraphs (3) and (4), a period which comprises 365 completed days including 29th February shall be treated as a completed year.

(3) The pensionable service of a whole-time regular firefighter member shall be calculated in accordance with the formula–

$$A+(B÷365)years,$ where– A is the number of completed years in the period; and B is the number of completed days in any remaining part of a year.$

(4) The pensionable service of a part-time regular firefighter member shall be calculated as a proportion of whole-time service by applying the formula–

$$AB×C,$ where– A is the person’s weekly contractual hours; B is the weekly whole-time equivalent conditioned hours; and C is the period of the person’s part-time service in years (calculated in accordance with the formula in paragraph (3), and with regard to paragraph (2)).$

(5) The pensionable service of a retained or volunteer firefighter for any year or part of a year of the retained or volunteer firefighter’s service shall be assessed as a proportion of whole-time service in accordance with the formula–

$$AB×365,$ where– A is the actual pensionable pay received in that year; and B is the retained or volunteer firefighter’s reference pay for that year.$

(6) Where, for the purpose of calculating an award payable to or in respect of a firefighter member–

(a) it is necessary to determine the firefighter member’s pensionable service reckonable by reason of service or employment before or after a particular date (“the material date”); and

(b) by virtue of the receipt by an authority of a transfer value payment, the firefighter member is entitled to reckon a period of pensionable service (“the credited period”) by reason of employment for a period (“the previous employment period”) which includes that date,

the credited period counts as pensionable service reckonable by reason of employment before and after the material date in the same proportion as that between the parts of the previous employment period falling before and after the material date.

PART 11 — PENSIONABLE PAY, PENSION CONTRIBUTIONS AND PURCHASE OF ADDITIONAL SERVICE

CHAPTER 1 — PENSIONABLE PAY AND PENSION CONTRIBUTIONS

Pensionable pay

1

(1) Subject to paragraph (3) and rule 3(3) of this Part, the pensionable pay of a firefighter member is the aggregate of–

(a) the firefighter member’s pay in relation to the performance of the duties of the firefighter member’s role, other than any allowance or emoluments that are paid to the firefighter member on a temporary basis; and

(b) the firefighter member’s permanent emoluments (including, in the case of a retained firefighter, any retaining allowance).

(2) Where a firefighter member surrenders the right to receive part of the firefighter member’s pensionable pay in exchange for the provision by the firefighter member’s employing authority of any non-cash benefit, the amount forgone shall continue to be treated as part of the firefighter member’s pensionable pay for all purposes of this Scheme (including determining pension contributions and calculating awards).

(3) A firefighter member’s pensionable pay in any tax year shall be taken not to include any amount in excess of the permitted maximum for that year.

(4) For the purposes of this rule and rule 2 of this Part, the permitted maximum for a tax year is £108,600: but in relation to a tax year other than the tax year ending in 2007, this is subject to paragraph (5).

(5) Where the retail price index for the month of December in the tax year preceding the tax year in question is higher than it was for the previous December the permitted maximum for the tax year in question shall be the amount arrived at–

(a) by increasing the permitted maximum for the previous tax year by the same percentage as the percentage increase in the retail prices index; and

(b) if the result is not a multiple of £600, by rounding it up to the nearest amount which is a multiple of £600.

Final pensionable pay

2

(1) For the purpose of calculating pensions under this Scheme, the final pensionable pay of a firefighter member is the aggregate of pensionable pay received in respect of the 365 pensionable pay days ending with the relevant date, but this is subject to the following paragraphs of this rule.

(2) Subject to paragraph (3), “the relevant date” for the purposes of paragraph (1)–

(a) in relation to a firefighter member who is entitled to two pensions under rule 7 of Part 3, means–

(i) as regards the first pension, the date on which the firefighter member was last paid at the higher rate (before changing roles and accepting a reduction in pensionable pay); or

(ii) as regards the second pension, the last day of the firefighter member’s membership of the Scheme[^f00032] or, if the firefighter member dies in service, the date of the firefighter member’s death; and

(b) in any other case, means the date of the firefighter member’s last day of pensionable service or, if the firefighter member dies in service, the date of the firefighter member’s death.

(3) Where a firefighter member’s final pensionable pay would have been more than the amount calculated in accordance with paragraph (1) if the relevant date had occurred on the corresponding day in either of the two periods of 365 pensionable pay days preceding the first day of the period of 365 pensionable pay days ending with the relevant date (as defined in paragraph (2) without reference to this paragraph), that corresponding day in whichever of those periods produces the higher amount shall be treated as the relevant date for the purposes of paragraph (1).

(4) Subject to paragraph (7), where a firefighter member is entitled to count only part of a year as a period of membership of the Scheme (“the membership period”), the firefighter member’s final pensionable pay is the amount of pensionable pay received in the membership period multiplied by 365 and divided by the number of days in the membership period.

(5) For the purposes of paragraph (1), any reduction of pensionable pay as a result of–

(a) sick leave; or

(b) stoppage of pay by way of punishment; or

(d) paid additional maternity leave or additional adoption leave; or

(e) unpaid periods in respect of which the firefighter member has paid pension contributions; or

(f) unpaid additional maternity leave or additional adoption leave in respect of which pension contributions have been paid,

shall be disregarded.

(6) The final reference pay of a retained or volunteer firefighter shall be determined by reference to the equivalent whole-time rate of pay for a regular firefighter of similar service, role and experience.

(7) A firefighter member’s final pensionable pay in any tax year shall be taken not to include any amount in excess of the figure which is the permitted maximum for that year.

Pension contributions

3

(1) A firefighter member shall pay pension contributions to the authority at the rate of 8.5% of the firefighter member’s pensionable pay for the time being.

(2) The contributions payable under paragraph (1) may be deducted by the authority from each instalment of pensionable pay as it becomes due, but this is subject to any other method of payment that may be agreed between the authority and the member.

(3) For the purposes of this rule, the pensionable pay of a firefighter member during a period of maternity, paternity or adoption leave shall be the pay that the person receives for that period including the value of any statutory maternity, paternity or adoption pay under the Social Security Contributions and Benefits Act 1992[^f00033].

Optional pension contributions during maternity and adoption leave

4

(1) A firefighter member who–

(a) is on maternity or adoption leave, which would not otherwise count as pensionable service under rule 2 of Part 10; and

(b) who, for the whole or part of the leave period, is not entitled to receive pay (including any statutory maternity or adoption pay under the Social Security Contributions and Benefits Act 1992),

may elect to pay pension contributions in respect of that leave period.

(2) The contributions shall be calculated by applying rule 3 of this Part to the pensionable pay (including any statutory maternity or adoption pay under the Social Security Contributions and Benefits Act 1992) received immediately before the start of the unpaid period in question.

(3) Subject to paragraph (6), an election must be made by giving written notice to the authority before the expiry of the period of 30 days (or such longer period as the authority may allow) beginning with_

(a) the day on which the firefighter member returns to work; or

(b) if the firefighter member does not return to work after the leave period, the day the firefighter member ceases to be employed by the authority.

(4) On receipt of the notice, the authority shall calculate the amount of contributions due and shall give notice in writing of that amount to the person concerned.

(5) Where the full amount of contributions due has not been paid within six months of the date of the notice given under paragraph (4), the person concerned shall be entitled to reckon as pensionable service such proportion of the period in respect of which contributions were due as the amount of contributions paid bears to the total amount of contributions due.

(6) Where a person dies before the end of the period of 30 days referred to in paragraph (3) without having given the required notice–

(a) the person shall be deemed to have given the notice; and

(b) the authority–

(i) shall give to the person’s personal representatives a statement of the amount of contributions due; and

(ii) may collect the contributions by deducting their amount from the amount of the death grant payable under Part 5.

CHAPTER 2 — PURCHASE OF ADDITIONAL SERVICE

Purchase of additional service

5

(1) A person who satisfies the conditions specified in paragraph (2) may, in accordance with the following provisions of this Chapter, elect to purchase additional service for the purpose of securing increased benefits under this Scheme.

(2) The conditions are that the person–

(a) is a firefighter member of the Scheme;

(b) is not a pension credit member; and

(3) Additional service may be purchased as years or part of a year, but the aggregate of–

(a) the period purchased;

(b) the person’s pensionable service up to the date of the purchase; and

must not exceed 40 years.

(4) Additional service may be purchased–

(a) by payment of a lump sum calculated in accordance with tables provided by the Scheme Actuary; or

(b) subject to paragraphs (5) and (6), by deduction from the person’s pensionable pay of periodical contributions of such percentage of that pay as shall be determined by the Scheme Actuary.

(5) An authority may permit a part-time regular firefighter to purchase additional service by periodical contributions at a rate that bears to the percentage determined by the Scheme Actuary the same proportion as the part-time regular firefighter’s pensionable pay bears to the pensionable pay of a full-time regular firefighter in the same role.

(6) An authority may permit a retained or volunteer firefighter to purchase additional service by periodical contributions; and in such a case they shall calculate the amount of the contributions by applying the rate determined by the Scheme Actuary to the firefighter’s reference pay.

Election to purchase additional service

6

(1) An election to pay a lump sum–

(a) must be made by written notice given to the authority not later than 12 months after the date on which the person last became employed by the authority as a firefighter; and

(b) if the sum is not paid within three months after the date on which notice was given, shall be treated as not having been made.

(2) An election to pay periodical contributions must be made by notice in writing given to the authority at least two years before the person’s normal retirement age, but no such election may be made where the person and the authority have agreed that the person will leave the scheme with an entitlement under any of rules 1, 2, 3, 5 and 6 of Part 3.

(3) Unless paragraph (1)(b) applies, an election under this rule–

(a) takes effect on the day on which the written notice is received by the authority; and

(b) is irrevocable once the lump sum has been paid or, as the case may be, the first contribution has been deducted.

Duration of periodical contributions and premature cessation

7

(1) Subject to paragraph (2), where a person has elected under rule 6 of this Part to pay periodical contributions, they are payable from his or her next birthday and continue to be payable until normal retirement age.

(2) Paragraph (1) ceases to apply to a person who leaves their employment before normal retirement age–

(a) where the person is entitled to a pension under rule 3 of Part 3 (deferred pension), on the person’s last day of service;

(b) where the person becomes entitled to a second pension under rule 7 of that Part (entitlement to two pensions), on the person’s last day of service in the second period of employment;

(d) on the date on which any contributions election takes effect.

(3) Where a sub-paragraph of paragraph (2) applies, the period of additional service purchased up to the date referred to in that sub-paragraph shall be treated as if it were the period ascertained in accordance with the formula–

$$A×BC,$ where– A is the number of 60ths of additional service which the person elected to purchase; B is the period in respect of which contributions have been made; and C is the period in respect of which contributions would, but for the cessation of the person’s employment, have been made in accordance with the election.$

(4) The period of additional service calculated in accordance with paragraph (3) shall be treated–

(a) Where the person qualifies for an ordinary pension (rule 1 of Part 3), as part of the pensionable service on which the ordinary pension is calculated;

(b) where the person qualifies for a deferred pension (rule 3 of Part 3), as part of the pensionable service on which the deferred pension is calculated;

(c) where the person takes member-initiated early retirement (rule 5 of Part 3), as part of the award to which the actuarial reduction is applied;

(d) where the person takes authority-initiated early retirement (rule 6 of Part 3), as part of the person’s pensionable service; or

(e) where, on commencing a second period of employment with the same authority, the person becomes entitled to two pensions (rule 7 of Part 3)–

(i) to the extent that it is attributable to the first period of employment, as part of the service on which the first pension is calculated; and

(ii) to the extent that it is attributable to the second period of employment, as part of the service on which the second pension is calculated.

(5) The period of additional service calculated in accordance with paragraph (3) shall not be treated as part of the pensionable service on which–

(a) the amount of any higher tier ill-health pension is calculated under rule 2 of Part 3; or

(b) the notional ill-health pension calculated where a survivor’s pension is awarded on the person’s death in service is calculated (rule 2(1) of Part 4).

(6) Additional service purchased by the payment of periodical contributions shall accrue annually in accordance with the contributions paid.

Discontinuance and resumption of periodical contributions

8

(1) An authority may–

(a) at the request of a firefighter member who has elected to purchase additional service by the payment of periodical contributions; and

(b) solely on the grounds of his or her financial circumstances,

agree to discontinue the making of deductions from his or her pay by way of such contributions.

(2) Where the firefighter member and the authority agree that deductions should be discontinued for a period not exceeding six months (“the discontinuance period”), the authority shall resume the making of deductions as soon as reasonably practicable after the end of that period or, at the request of the firefighter member, at such time before the end of that period as may be agreed.

(3) Where the firefighter member and the authority agree that deductions should be discontinued for a period of six months or more, the member’s election under rule 6 of this Part shall be treated as cancelled with effect from the date of the agreement.

(4) The period of additional service purchased up to the date on which the last contribution was deducted shall be treated as if it were the period ascertained in accordance with the formula–

$$A×BC,$ where– A is the number of 60ths of additional service which the firefighter member elected to purchase; B is the period in respect of which contributions have been made; and C is the period in respect of which contributions would have been made in accordance with the election (disregarding for this purpose any deemed cancellation under paragraph (3)).$

(5) Subject to paragraph (6), where–

(a) deductions were discontinued under paragraph (2); and

(b) the firefighter member wishes to purchase additional service referable to the discontinuance period,

a deduction of an amount equal to the aggregate of the contributions that would otherwise have been made in respect of that period shall be made on the same occasion as the first resumed deduction is made.

(6) Where the firefighter member’s rate of pay at the end of the discontinuance period is less than at the beginning of that period, deductions in respect of the discontinuance period shall be made at the rate that would have applied if deductions had been made from the firefighter member’s salary during that period.

Periodical contributions in respect of periods of unpaid service or absence

9

(1) A firefighter member who–

(a) has elected to purchase additional service in respect of a period of unpaid service or unpaid leave which falls within the period in respect of which contributions are payable in accordance with rule 7(1) of this Part; and

(b) complies with the requirements of paragraph (2),

is entitled to require the authority to treat that period of unpaid service or unpaid leave as a period of pensionable service.

(2) The requirements of this paragraph are that the firefighter member must, not later than one month after the end of the period of unpaid service or leave (as the case may be), require the authority to deduct from the firefighter member’s pay an amount equal to the aggregate of the contributions that would have been made in respect of that period if it had been a period of paid service.

(3) In paragraphs (1) and (2) “unpaid leave” means adoption leave, additional adoption leave, additional maternity leave or ordinary maternity leave or other absence without pay (including absence while participating in a strike).

(4) Contributions payable under paragraph (2) may be paid–

(a) during the unpaid leave period;

(b) within six months of returning to duty after the end of that period; or

Effect of purchasing additional service by lump sum payment

10

(1) Subject to paragraph (2), where a period of additional service has been purchased by way of a lump sum payment, the firefighter member’s pensionable service shall be increased by that period as regards any award payable to the firefighter member under this Scheme.

(2) A period of additional service purchased by way of a lump sum payment shall not be treated as part of the pensionable service on which the amount of any higher tier ill-health pension is calculated under rule 2 of Part 3.

(3) If the firefighter member takes member-initiated early retirement the period of additional service shall be part of the total to which the actuarial reduction is applied under rule 5 of Part 3.

(4) If the firefighter member takes authority-initiated early retirement the period of additional service shall be part of the pensionable service on which the pension is calculated under rule 6 of Part 3.

PART 12 — TRANSFERS INTO AND OUT OF THE SCHEME

CHAPTER 1 — INTERPRETATION OF PART 12 AND ENTITLEMENT TO TRANSFER VALUE PAYMENT

Interpretation of Part 12

1

In this Part–

“guaranteed cash equivalent transfer value payment” means a payment of the description mentioned in rule 4(2) of this Part; and

“public sector transfer arrangements” means arrangements approved by the Secretary of State as providing reciprocal arrangements for the payment and receipt of transfer values between this Scheme and other occupational pension schemes.

Entitlement to transfer value payment

2

(1) This Part supplements the rights conferred by Chapter IV of Part IV of the 1993 Act (transfer values) (“Chapter IV”).

(2) A firefighter member or deferred member–

(a) to whom Chapter IV applies[^f00034]; and

(b) who is not a pension credit member or pensioner member of this Scheme,

is entitled to require the payment of a transfer value in respect of the rights to benefit that have accrued to or in respect of the firefighter member or deferred member under this Scheme.

(3) Subject to the provisions of this Part, any former firefighter member, other than a pensioner member, is entitled to require such a payment as if such rights had accrued to or in respect of the former firefighter member by reference to the pensionable service the former firefighter member is entitled to count under this Scheme (and references in this Part to the former firefighter member’s accrued rights or benefits are to be read accordingly).

(4) Paragraph (3) does not apply if the contributions the former member has paid during the period of service ending with the former member’s ceasing to be a firefighter member are refunded under rule 8 of Part 3 and, where applicable, in accordance with Chapter V of Part IV of the 1993 Act.

(5) Paragraphs (2) and (3) do not apply to rights that are directly attributable to a pension credit.

CHAPTER 2 — TRANSFERS OUT OF THE SCHEME

Applications for statements of entitlement

3

(1) A member who requires a transfer value payment to be made must apply in writing to the authority for a statement of the amount of the cash equivalent of the member’s accrued benefits under the Scheme at the guarantee date (“a statement of entitlement”).

(2) In this Chapter, “the guarantee date” means any date that–

(a) falls within the required period;

(b) is chosen by the authority;

(d) is within the period of ten days ending with the date on which the member is provided with the statement of entitlement.

(3) In counting the period of ten days referred to in paragraph (2)(d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(4) In paragraph (2) “the required period” means–

(a) the period of three months beginning with the date of the member’s application for a statement of entitlement; or

(b) such longer period (not exceeding six months beginning with that date) as may reasonably be required if, for reasons beyond the control of the authority, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(5) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided.

(6) Where, in any period of twelve consecutive months, a member–

(a) has made, and not withdrawn, two applications for a statement of entitlement; and

(b) makes a third (or subsequent) application,

the authority shall not be required to entertain the application if it is not accompanied by a payment of such amount as the authority may reasonably require.

Applications for transfer value payments

4

(1) A member who has applied for and received a statement of entitlement under rule 3 of this Part may apply in writing to the authority for a transfer value payment to be made.

(2) On making such an application a member becomes entitled to payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of paragraph (9)).

(3) An application under paragraph (1) must be made before the end of the period of three months beginning with the guarantee date, and the payment must be made no later than–

(a) six months after that date; or

(b) if it is earlier, the date on which the member reaches normal benefit age.

(4) The application must specify the pension scheme or other arrangement to which the payment or payments should be applied.

(5) Subject to paragraph (6), an application by a person who is entitled to apply for a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only be made before–

(a) the beginning of the period of one year ending with the date on which the member reaches normal benefit age; or

(b) the end of the period of six months beginning with the day after that on which the member’s pensionable service ends, provided that service ends at least one year before normal benefit age,

whichever is the later.

(6) An application for a transfer value payment to be made under public sector transfer arrangements may only be made–

(a) before the first anniversary of the day on which the member becomes eligible to be a firefighter member of the scheme to which the transfer is to be made; and

(b) before the member reaches normal benefit age.

(7) An application by a person who is not entitled to apply for a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only be made–

(a) on or before the first anniversary of the day on which the applicant ceases to be a firefighter member of this Scheme; and

(b) before the member reaches normal benefit age.

(8) An application under this rule may be withdrawn by notice in writing, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given.

(9) If the payment is made later than six months after the guarantee date, the amount of the payment to which the member is entitled must be increased by–

(a) the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made; or

(b) if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of one per cent above base rate.

(10) In this rule–

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in descending sequence of seven, is fourth in the sequence; and

“the reference banks” means the seven largest persons for the time being who– have permission under Part IV of the Financial Services and Markets Act 2000 (permission to carry on regulated activities)[^f00035] to accept deposits; are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and quote a base rate in sterling, and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985 (“subsidiary”, “holding company” and “wholly owned subsidiary”))[^f00036], as shown in the audited end-of-year accounts last published before that time.

Ways in which transfer value payments may be applied

5

(1) A member who is entitled to a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only require the authority to apply the cash equivalent transfer value payment in one or more of the ways permitted under section 95 of that Act.

(2) A member who is not entitled to a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only require the authority to apply the guaranteed cash equivalent transfer value payment in one of the ways permitted under section 95 of that Act.

(3) The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (4) applies.

(4) The benefits attributable to–

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

may be excluded from the guaranteed cash equivalent transfer value payment if section 96(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights).

(5) A transfer payment may only be made to–

(a) a pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004; or

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part (see section 169(2) of that Act).

Calculating amounts of transfer value payments

6

(1) Subject to paragraph (3), the amount of the guaranteed cash equivalent transfer value payment is to be calculated in accordance with guidance and tables provided by the Scheme Actuary for use at the guarantee date.

(2) In preparing those tables the Scheme Actuary must use such factors as the Scheme Actuary considers appropriate, having regard to section 97 of the 1993 Act and regulations under that Act (whether or not the payment is in respect of a person entitled to a guaranteed cash equivalent transfer value payment under that Act).

(3) If the amount calculated in accordance with paragraph (1) is less than the minimum transfer value, the amount of the guaranteed cash equivalent transfer value payment is to be equal to that value instead.

(4) In paragraph (3) “the minimum transfer value”, in relation to any person, means the sum of–

(a) any transfer value payments that have been made to the Scheme in respect of the person; and

(b) any contributions paid by the person under rule 3 of Part 11.

(5) If the transfer value payment is made under public sector transfer arrangements, the amount of the transfer value payment shall be calculated–

(a) in accordance with those arrangements rather than paragraphs (1) to (3); and

(b) by reference to the guidance and tables provided by the Scheme Actuary for the purposes of this paragraph that are in use on the date used for the calculation.

Effect of transfers-out

7

Where a transfer value payment is made under this Chapter in respect of a person’s rights under this Scheme, those rights are extinguished.

CHAPTER 3 — TRANSFERS INTO THE SCHEME

Applications for acceptance of transfer value payment from another scheme

8

(1) Subject to the provisions of this Part, a firefighter member may apply for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of the firefighter member under–

(a) another occupational pension scheme registered under Chapter 2 of Part 4 of the Finance Act 2004; or

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part[^f00037]; or

to be accepted by the authority for the purposes of this Scheme.

(2) Paragraph (1) does not apply to rights that are directly referable to a pension credit.

(3) Paragraph (1) does not apply if the member is on unpaid leave that does not count as pensionable service.

Procedure for applications under rule 8

9

(1) An application under rule 8 of this Part–

(a) must be made in writing;

(b) must specify the scheme or arrangement from which the transfer value payment is to be made and the anticipated amount of the payment; and

(i) before the beginning of the period of one year ending with the date on which the member reaches normal retirement age; and

(ii) in the case of a transfer value payment from a non-occupational pension scheme, during the period of one year beginning with the day on which the member becomes eligible to be a firefighter member, or such longer period as the authority may allow.

(2) In the case of a transfer value payment to be made under public sector transfer arrangements, the application under rule 8 of this Part–

(a) must be made during the period of one year beginning with the day on which the member becomes eligible to be a firefighter member, or such longer period as the authority may allow; and

(b) must be received by the authority before the applicant reaches the age which is the normal pension age under the scheme by which the transfer value payment is to be made.

Acceptance of transfer value payments

10

(1) Subject to paragraph (3) below and paragraphs (2) and (3) of rule 2 of Part 10 (reckoning of pensionable service), where an application is duly made by a member under rule 8 of this Part, the authority may accept the transfer value payment.

(2) If the authority accept the payment, the member is entitled to count the period calculated in accordance with rule 11 of this Part as pensionable service for the purposes of this Scheme.

(3) The authority may not accept a transfer value payment if–

(a) it would be paid otherwise than under public sector transfer arrangements;

(b) it would be applied in whole or in part in respect of the member’s or the member’s spouse’s or civil partner’s entitlement to a guaranteed minimum pension; and

(c) it is less than the amount required for that purpose, as calculated in accordance with guidance and tables prepared by the Scheme Actuary for the purposes of this paragraph.

Calculation of transferred-in pensionable service

11

(1) Subject to paragraph (3), the period of pensionable service that a member is entitled to count under rule 10(2) of this Part shall be calculated as at the date on which the transfer value payment is received by the authority and in accordance with guidance and tables provided by the Scheme Actuary for the purpose.

(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–

(a) two months after the application under rule 8 of this Part is received; or

(b) the date on which the transfer value payment is received,

whichever is the later; and, in a case where the transfer value payment is received earlier than two months after that application is received, any necessary adjustment shall be made to that calculation to reflect any change in the amount of those earnings.

(3) If the transfer payment is accepted under public sector transfer arrangements, the period that the member is entitled to count shall be calculated–

(a) subject to paragraph (4), in accordance with those arrangements; and

(b) by reference to the guidance and tables provided by the Scheme Actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.

(4) If the period that the member would be entitled to count would be greater if the transfer value payment were accepted otherwise than under public sector transfer arrangements–

(a) those arrangements shall not apply; and

(b) paragraph (1) of this rule shall apply instead.

CHAPTER 4 — TRANSFERS BETWEEN FIRE AUTHORITIES

Transfer of payments and pension history between fire authorities

12

(1) Subject to both the calculation of a transfer payment under Chapter 2 and to paragraph (7) of this rule, where a firefighter member–

(a) leaves the employment of an authority (the “former authority”);

(b) without a break of service, takes up employment as a firefighter with another authority (the “new authority”); and

the former authority shall in addition to providing a cash transfer value calculated under Chapter 2 of this Part, not later than six months after the firefighter member left their employment, supply the new authority with a certificate showing the pensionable service the firefighter member was entitled to reckon as at the date on which the firefighter member left the former authority’s employment (“the material date”).

(2) At the same time as the former authority supply a certificate under paragraph (1), they shall send a copy of it to the person concerned, together with a statement of its effects on completion of the transfer.

(3) Subject to paragraph (7), if the person concerned is dissatisfied with the information specified in a certificate under paragraph (1), the person may, within three months after being supplied with a copy of it, ask the former authority to determine the accuracy of the information contained in it.

(4) A person who makes a request under paragraph (3) shall send a copy of it to the person’s new authority.

(5) A request under paragraph (3) shall be considered by means of the arrangements for the resolution of disagreements implemented by the authority pursuant to the requirements of section 50 of the Pensions Act 1995[^f00038] (resolution of disputes) and the Occupational Pension Schemes (Internal Dispute Resolution Procedures) Regulations 1996[^f00039]; and the authority shall either confirm the certificate or issue a new certificate.

(6) If the person concerned does not make a request under paragraph (3), the certificate as supplied, and if the person does make such a request, the certificate as confirmed or the new certificate issued (as the case may be), is conclusive as to the pensionable service the person was entitled to reckon at the material date.

(7) If, after the material date but before a certificate has been supplied under paragraph (1), the person concerned–

(a) claims a pension or lump sum under this Scheme;

(b) claims a pension or lump sum under the Compensation Scheme; or

that paragraph ceases to apply.

(8) If an event mentioned in any sub paragraphs (a) to (c) of paragraph (7) occurs before the certificate in question has become conclusive, the certificate ceases to have effect and paragraph (3) ceases to apply.

(9) As soon as reasonably practicable after a certificate has become conclusive, the new authority shall give effect to it by crediting the person concerned with the pensionable service shown in the certificate.

(10) For the purposes of this rule, at least the former authority or the new authority must be a Scottish fire authority.

CHAPTER 5 — MIS-SOLD PENSIONS AND RESTITUTION PAYMENTS

Interpretation of Chapter 5

13

(1) In this Chapter–

“calculated amount” means the amount which, in accordance with rule 15 of this Part, an authority calculate would need to be made as a restitution payment in respect of the firefighter concerned;

“relevant methods and assumptions” means the methods and assumptions notified by the Scheme Actuary for the calculation of cash equivalent values for occupational pension schemes; and

“relevant period”, in relation to a firefighter, means the total of any periods of opted out and, where appropriate, transferred-out service.

(2) For the purposes of this Chapter–

(a) a person shall be taken to have opted out if the person had made a contributions election and for any period during which the person was a firefighter the person instead made contributions to a personal pension scheme; and

(b) a person shall be taken to have transferred out if an authority have made a transfer value payment in respect of the person under Chapter 2 of this Part to the administrator of a personal pension scheme.

Mis-sold pensions

14

(1) This rule applies to a firefighter who–

(a) has opted out or transferred out, or both; and

(b) has suffered actionable loss as a result of a contravention which is actionable under section 150 of the Financial Services and Markets Act 2000[^f00040] (actions for damages).

(2) A firefighter to whom this rule applies who has given notice–

(a) under rule 6 of Part 2 cancelling his or her contributions election; or

(b) under rule G3(5) of the 1992 Scheme (cancellation of election not to pay contributions),

may give written notice to the authority that the firefighter wishes them to accept a transfer value payment in order to create or restore the firefighter’s pensionable service.

(3) Paragraph (4) or (5) applies where, within twelve months of the date of a notice given under paragraph (2) or such longer period as the authority may allow, the authority have accepted a transfer value payment in relation to the firefighter who gave the notice (whether or not the firefighter has ceased to be a firefighter after the date of the notice) not exceeding the calculated amount.

(4) Where the amount of the transfer value payment is equal to the calculated amount–

(a) the whole of the relevant period shall be treated as pensionable service; and

(b) for the purposes of calculating any award under this Scheme, the firefighter who gave the notice shall be treated as having made pension contributions throughout that period.

(5) Where the amount of the transfer value payment is less than the calculated amount–

(a) the authority shall, in accordance with the relevant methods and assumptions, calculate the period of pensionable service that the transfer value payment represents, and treat that period as pensionable service;

(b) for the purposes of calculating any award under this Scheme, the firefighter who gave the notice shall be treated as having made pension contributions throughout that period; and

(c) that period shall be treated as a continuous period with the same final date as the final date of the relevant period.

(6) Where a firefighter who is being credited under paragraph (4) or (5) with a period of pensionable service has previously been credited, in respect of the relevant period, with–

(a) an additional period of pensionable service calculated in accordance with this Part; or

(b) an additional period of reckonable service calculated in accordance with Part 4 of Schedule 6 to the 1992 Scheme (amount of transfer value),

the authority may adjust the amount of the transfer value payment that they accept under this rule to ensure that no part of the additional period of pensionable or reckonable service that was previously credited is included in the period of pensionable service credited under paragraph (4) or (5).

Calculation of amount of restitution payment

15

(1) An authority shall, in accordance with paragraph (2), calculate the restitution payment that would need to be made to them in respect of a person to whom rule 14 of this Part applies to create or restore the person’s position to what it would have been if the person had not opted-out or, where relevant, transferred-out.

(2) The restitution payment is an amount equal to the sum of–

(a) the capitalised value at the material date, determined in accordance with the relevant methods and assumptions, which would produce a service credit equal to the person’s total period of opted out service, including the capitalised value of any rights under the Pensions (Increase) Act 1971 and the Pensions (Increase) Act 1974[^f00041]; and

(b) in the case of a firefighter who also transferred out, the greater of–

(i) any transfer value paid by an authority to the administrator of a personal pension scheme in respect of the firefighter’s transferred-out service under Chapter 2 of this Part, increased by interest calculated at a rate approved by the Scheme Actuary over the period from the date of payment of that transfer value to the assumed calculation date; and

(ii) the cash equivalent transfer value that would be payable by the authority in respect of that transferred-out service if they were to pay a cash equivalent transfer value in respect of that service determined in accordance with the relevant methods and assumptions applicable immediately after the assumed calculation date.

(3) In this rule–

“assumed calculation date” means the date on which it is assumed, for the purpose of calculating a restitution payment, that a transfer value will be paid to the authority; and

“material date” means the date on which the authority receive a notice under rule 14 of this Part.

PART 13 — PAYMENT OF AWARDS

Authorities responsible for payment of awards

1

(1) An award payable to or in respect of a person by reason of the person having been employed as a regular firefighter is payable by the authority by whom the person was last so employed.

(2) An award payable under Part 6 (pension sharing on divorce) to or in respect of a pension credit member, and any sum paid in commutation of such an award, is payable by the authority which employed the pension debit member from whose rights the pension credit member’s award is derived when the pension sharing order took effect.

Deduction of tax and lifetime allowance charges

2

Where any payment that an authority are required to make under this Scheme is chargeable to tax or subject to a recovery charge under the Finance Act 2004[^f00042], they shall deduct the amount of tax charged or to be recovered from the payment.

Payment of awards

3

(1) Subject to paragraph (2), while an award is payable under this Scheme it shall be paid monthly in arrears.

(2) The authority may–

(a) delay payment, in whole or part, to the extent necessary for determining any question as to their liability; and

(b) where they are of the opinion that, by reason of the amount of the award, its payment monthly in arrears would be impracticable, discharge their liability in respect of it by making payments at such reasonable intervals as they think fit.

(3) Lump sums under Part 5 and, subject to paragraphs (4) and (5), pensions under Part 4 are payable from the day after the date of the death.

(4) A pension under Part 4 in respect of a posthumous child is payable from the date of the child’s birth.

(5) Where–

(a) the authority are not informed of the death of a pensioner; and

(b) a pension to which the pensioner was entitled has continued in payment,

the authority may recover all or part of the overpayment, as they think fit; and may recover it by set-off against any other award payable under this Scheme in respect of the deceased.

(6) Where a person is entitled under rule 8 of Part 3 to the repayment of the person’s aggregate pension contributions, the authority are not obliged to make payment–

(a) until the expiration of a year from the date of the person’s retirement; or

(b) until the person requests payment,

whichever is the earlier.

Pensions under more than one contract of employment

4

Where a person is a member of this Scheme in respect of more than one contract of employment (whether with the same or different authorities), each employment shall be treated separately for pension purposes.

Payments for minors and persons incapable of managing their affairs

5

(1) Any sum payable to a minor in respect of an award may, if the authority think fit, be paid to such other person as they may determine, who shall, in accordance with any directions given by the authority, apply it for the minor’s benefit.

(2) If it appears to the authority that a person entitled to payment of an award is, by reason of mental disorder or otherwise, incapable of managing their affairs–

(a) they may pay the award or any part of it to a person having the care of the person entitled, or such other person as they may determine; and

(b) insofar as they do not pay the award in that manner, they may apply it in such manner as they think fit for the benefit of the person entitled or the person’s dependants.

Payment of awards: further supplementary provision

6

(1) On the death of a person to whom there was due, in respect of an award, a sum not exceeding the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965[^f00043], the authority may, without requiring the production of probate or any other proof of entitlement–

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