The Firefighters’ Pension Scheme (Scotland) Amendment (No. 2) Order 2014

Made: 22nd April 2014

Laid before the Scottish Parliament: 24th April 2014

Coming into force: 23rd May 2014

In accordance with section 34(5) of that Act, they have consulted with such persons as they considered appropriate.

Citation and commencement

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This Order may be cited as the Firefighters’ Pension Scheme (Scotland) Amendment (No. 2) Order 2014 and comes into force on 23rd May 2014.

Amendment of the Firefighters’ Pension Scheme (Scotland) Order 2007

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Schedule 1 to the Firefighters’ Pension Scheme (Scotland) Order 2007[^f00002] is amended in accordance with the Schedule to this Order.

SCHEDULE — Amendment of Schedule 1 to the Firefighters’ Pension Scheme (Scotland) Order 2007

Amendment of Part 1 (citation and interpretation)

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In Part 1—

• (a) in rule 2 (interpretation), in paragraph (1)—

• (i) after the definition of “the 1999 Act”, insert—

• “the 2004 Act” means the Finance Act 2004[^f00003];
• “Actuary” means a fellow of the Institute and Faculty of Actuaries;

• (ii) in the definition of “child”, for “or a pensioner member” substitute “a pensioner member or a special member”;

• (iii) after the definition of “child”, insert—

• “child’s pension” means a pension under rule 6 (child’s pension) of Part 4 (survivors’ pensions);

• (iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (v) after that definition of “injury”, insert—

• “IQMP means an independent qualified medical practitioner;
• “limited period” means the period beginning on 1st July 2000 or if later, the date falling before 6th April 2006, on which the person was first employed as a retained firefighter and ending on the earlier of—the date on which that person joined this Scheme as a special member or as a standard member in respect of service which he or she could otherwise reckon as special pensionable service, andthe date, if applicable, on which that person ceased to be employed as a retained or regular firefighter;

• (vi) after “lower tier ill-health pension”, insert—

• “lump sum contribution” means the lump sum payable under paragraphs (1) to (13) of rule 6A of Part 11;
• “mandatory special period” means that part of a person’s service during the limited period beginning on the date selected by that person before 6th April 2006 and ending on the earlier of—the date on which that person joined this Scheme as a special member or as a standard member in respect of service which he or she could otherwise reckon as special pensionable service, andthe date, if applicable, on which that person was dismissed or retired from employment as a regular or retained firefighter;
• “mandatory special period pension contributions” means the special pension contribution payable in respect of a special member’s service during the mandatory special period under rule 6A of Part 11 together with any interest payable in respect of that contribution in accordance with rule 6A(13);

• (vii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (viii) after the definition of “normal retirement age”, insert—

• “ordinary pension”, in relation to a standard member, means a pension referred to in rule 1 of Part 3 (personal awards);

• (ix) in the definition of “pensioner”, after “pensioner member” insert “or “special pensioner member””;

• (x) for the definition of “retained firefighter” and “volunteer firefighter”, substitute—

• “retained firefighter” means a person employed by an authority—as a retained firefighter, but not as a regular firefighter or as a volunteer firefighter;on terms under which that person is, or may be, required to engage in firefighting or, without a break in continuity of such employment, may be required to perform other duties appropriate to the person’s role as a firefighter (whether instead of, or in addition to, engaging in firefighting);otherwise than in a temporary capacity; andwho is obliged to attend at such times as the officer in charge considers necessary, and in accordance with the orders that he or she receives;

• (xi) after the definition of “role”, insert—

• “Scheme Actuary” means the actuary appointed by the Scottish Ministers to provide actuarial advice and to carry out any statutory functions set out in the Scheme;
• “scheme chargeable payment” has the meaning given in section 241 of the 2004 Act;
• “special deferred member” has the meaning given by rule 1A(5) to (8) of Part 2;
• “special eligibility conditions” has the meaning given in rule 2A of Part 2;
• “special firefighter member” has the meaning given in rule 1A(1) to (4) of Part 2;
• “special membership” means membership of this Scheme as a special firefighter member, special deferred member or special pensioner member as the case may be;
• “special member” means a special firefighter member, a special deferred member or a special pensioner member;
• “special member’s ordinary pension” means a pension of the description referred to in rule 1A of Part 3;
• “special pension contribution” means the pension contribution set out in rule 3(1A) of Part 11;
• “special pensionable retained service”, in relation to a retained firefighter who is a special member and any period of special pensionable service, means the same proportion of whole-time service as that which actual pensionable pay for that period bears to the person’s reference pay for that period;
• “special pensionable service” is to be construed in accordance with rules 2A to 5 of Part 10;
• “special pensioner member” has the meaning given by rule 1A(9) to (13) of Part 2;
• “standard member” means a member of this Scheme other than a special member;
• “standard membership” means membership of this Scheme as a standard member.

• (xii) after the definition of “transfer value payment”, insert—

• “volunteer firefighter” means a person employed by an authority—as a volunteer firefighter but not as a regular firefighter or as a retained firefighter;on terms under which that person is, or may be required to, engage in firefighting (whether instead of, or in addition to, engaging in firefighting);otherwise than in a temporary capacity; andwho is obliged to attend at such times as the officer in charge considers necessary, and in accordance with the orders that he or she receives.

• (b) in rule 2, after paragraph (2) insert—

(3) References in this Scheme to a firefighter member, a deferred member or a pensioner member include references to a special firefighter member, a special deferred member or a special pensioner member, respectively, unless the contrary intention is shown.

Amendment of Part 2 (scheme membership, cessation and retirement)

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In Part 2—

• (a) in paragraph (4) of rule 1 (scheme membership), after “pensionable service” insert “or special pensionable service”;

• (b) after rule 1, insert—

(1A) (1) Subject to paragraphs (2) to (5) and (15), a firefighter member of any of the following descriptions is also a special firefighter member of this Scheme— (a) a person who— (i) having taken up employment as a retained firefighter before 6th April 2006; (ii) having continued in such employment until the date of that person’s election; and (iii) having elected[^f00004], within the period required by rule 6B(1), or 6B(12) as the case may be, of Part 11 to pay the mandatory special period pension contributions; (b) a person who— (i) having taken up employment as a retained firefighter before 6th April 2006; (ii) having continued in such employment until a date on or after 6th April 2006; (iii) having, immediately after the termination of such employment, taken up employment as a regular firefighter and continued in that employment until the date of his or her election; and (iv) having elected, within the period required by rule 6B(1), or 6B (12) as the case may be, of Part 11 to pay the mandatory special period pension contributions. (2) Where a special firefighter member makes a contributions election in respect of his or her special membership and ceases to be a special member, he or she may again become a firefighter member (but not a special member) by virtue of rule 6 of this Part, which shall apply to him or her with the omission of the word “again”. (3) A special firefighter member who is treated as having ceased to make mandatory special period pension contributions in accordance with rule 6B(5)(C) of Part 11 ceases to be a special firefighter member and becomes a special deferred member. (4) A special firefighter member who is entitled to reckon a period as special pensionable service pursuant to rule 5 of Part 10 and resumes service immediately after that period remains a special firefighter member. (5) A special firefighter member who would be entitled to reckon a period as special pensionable service pursuant to rule 4 of Part 10 (reckoning of unpaid period of absence) if that person had elected to purchase additional service during that period under rule 4(1) of that Part and subsequently paid the special pension contribution in respect of that period, but does not so elect or pay that special pension contribution, remains a special firefighter member if he or she resumes service immediately after that period. (6) Subject to paragraph (15), a person who satisfies the conditions in paragraph (7) is a special deferred member of this Scheme. (7) The conditions are that the person— (a) took up employment as a retained firefighter before 6th April 2006; (b) was employed as a retained firefighter on or after 1st July 2000; (c) resigned or was dismissed from that employment before the date that his or her election under rule 6A of Part 11 to pay the mandatory special period pension contributions took effect; (d) was younger than 55 years on the date of the resignation or dismissal; (e) is not entitled to an ill-health award under rule 2 or 2A of Part 3; and (f) has elected, within the period required by rule 6B(1), or 6B(12) as the case may be, of Part 11 to pay the mandatory special period pension contributions. (8) Subject to paragraph (15) a person who— (a) satisfies the requirements of paragraph (1)(a); (b) has joined this Scheme as a standard member in respect of service which that person would otherwise be entitled to treat as special pensionable service before electing to join this Scheme as a special member; and (c) does not elect to convert his or her standard membership to special membership is a special deferred member of this Scheme. (9) A person who was a special firefighter member of this Scheme immediately before paragraph (1) of rule 3 of Part 3 applied to him or her is then a special deferred member of this Scheme. (10) Subject to paragraph 15, a person who satisfies all of the conditions in paragraph (11) and who satisfies at least one of the conditions in paragraph (12) is a special pensioner member of this Scheme. (11) The conditions are that the person— (a) took up employment as a retained firefighter before 6th April 2006; (b) was employed as a retained firefighter on or after 1st July 2000; (c) retired from that employment before the date that his or her election under rule 6A of Part 11 to pay the mandatory special period pension contributions took effect; (d) has elected, within the period required by rule 6B(1), or 6B(12) as the case may be, of Part 11 to pay the mandatory special period pension contributions. (12) The conditions are that the person— (a) retired having attained the age of 55 ; (b) was dismissed or retired by reason of permanent disability and the conditions of rule 2A of Part 3 (retrospective award on ill-health retirement) are capable of being satisfied; or (c) has attained the age of 60. (13) Subject to paragraph (15), a person of any of the following descriptions is also a special pensioner member of this Scheme— (a) a person who was a special firefighter member of this Scheme immediately before retirement and to whom rule 1A of Part 3 applies; (b) a person who was a special deferred member of this Scheme immediately before retirement and who satisfies the requirements of paragraph (4) of rule 3 of Part 3; (c) a person who was a special firefighter member of this Scheme immediately before leaving employment by reason of permanent disablement and is entitled under rule 2 (award on ill-health retirement) of Part 3 (personal awards) to a lower tier ill-health pension or a higher tier ill-health pension. (14) A person who was a special deferred member of this Scheme immediately before his or her 60th birthday is a special pensioner member after that date. (15) Aperson who was employed as a retained firefighter and to whom paragraph (1) of rule 2 of Part 8 of the Compensation Scheme applies (award to or in relation to a retained firefighter) may not be a special member of this Scheme.

• (c) after rule 2 (eligibility conditions), insert—

(2A) (1) A special firefighter member is eligible for a special member’s ordinary pension or a pension under rule 2 (award on ill-health retirement) or rule 3 (deferred pension) of Part 3 as a special member under this Scheme if— (a) that person pays the special pension contribution; and (b) an eligibility condition is satisfied. (2) A special deferred member or a special pensioner member is eligible for a special member’s ordinary pension or a pension under rule 2 (award on ill-health retirement) or a rule 2A (retrospective award on ill-health retirement) if an eligibility condition is satisfied. (3) A special deferred member who was a special firefighter member immediately before satisfying the requirements of paragraph (1) of rule 3 of Part 3 and in respect of whom an eligibility condition is satisfied is entitled to a special member’s ordinary pension.

• (d) in paragraphs (1) and (2) of rule 3 (normal retirement age and normal benefit age), after “members” in each place where it occurs insert “who are not special firefighter members”;

• (e) after paragraph (2) of rule 3 (normal retirement age and normal benefit age), insert—

(3) The normal retirement age of special firefighter members, or for persons who joined this scheme as special pensioner members, is 55. (4) The normal benefit age of special firefighter members, or of special deferred members, is 60

Amendment of Part 3 (personal awards)

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In Part 3—

• (a) in rule 1 (ordinary pension), for paragraph (2) substitute—

(2) This rule does not apply to— (a) a firefighter member whose notice of retirement states that the person is retiring forthe purpose of taking up employment with another authority; or (b) subject to rule 18 of Part 12, a special firefighter member in respect of special pensionable service.

• (b) after rule 1, insert—

(1A) that person is entitled to a special member’s ordinary pension. (1) Subject to paragraph (2), this rule applies to a member of this Scheme who is a special member and who satisfies one of the special eligibility conditions and retires or has retired. (2) This rule does not apply to a special firefighter member whose notice of retirement states that the member is retiring for the purpose of taking up employment as a firefighter with another authority. (3) Where a special member to whom this rule applies— (a) is not entitled to an ill health award under rule 2 or 2A; (b) attains or has attained the age of 55; and (c) retires, (4) A special member who is not entitled to a special member’s ordinary pension under paragraph (3) or an ill health award under rule 2 or 2A is entitled to a deferred pension. (5) Where a special member to whom this rule applies becomes entitled to a special member’s ordinary pension in respect of service as a retained firefighter, his or her special member’s ordinary pension shall be calculated by multiplying final pensionable pay by special pensionable retained service and dividing the resultant amount by 45. (6) Where a special member to whom this rule applies has special pensionable service as a regular firefighter accrued whilst that person was a special member, he or she becomes entitled on retiring to a special member’s ordinary pension calculated by multiplying that part of that person’s special pensionable service which is attributable to service as a regular firefighter by final pensionable pay and dividing the resultant amount by 45. (7) Where paragraph (6) applies, the amount calculated under that paragraph shall be added to the amount calculated under paragraph (5). (8) Where a person joins this Scheme as a special pensioner member and is entitled to a pension under this rule, the authority shall pay to that person a lump sum equal to the value, together with interest, of the pension payments (“the past pension payments”) he or she would have received up to the date of payment of the lump sum if at the date of retirement he or she had been a member of this Scheme who had made contributions equivalent to contributions under rules 6A and 6B of Part 11 and shall thereafter pay that person a special member’s ordinary pension. (9) The interest payable in accordance with paragraph (8) is payable as follows— (a) for the purposes of calculating interest under this paragraph, it shall be assumed that the past pension payments were payable from the date that the member reached normal retirement age; (b) interest starts to accrue from the date that the first past pension payment would have been made in accordance with sub-paragraph (a) and ceases to accrue on the date of payment of the lump sum in accordance with paragraph (8); (c) interest shall be calculated by applying the past interest rate to the past pension payment compounded monthly between the month each past pension payment would have been made in accordance with sub-paragraph (a) until the date of payment of the lump sum, and for the purposes of this rule “past interest rate” is a rate equivalent to the interest available on the most recent issue of five-year fixed interest savings certificates from National Savings and Investments available of the 15th day of each month which would have been applicable to the period when the past pension payment in question would have been made in accordance with sub-paragraph (a).

• (c) in rule 2 (award on ill-health retirement), for paragraph (2) substitute—