The Firefighters’ Pension Scheme (England) Regulations 2014

• (3A) In the case of a member who is entitled to an equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the 1992 Scheme lower tier ill-health pension, the adjusted lower tier ill-health pension includes the adjusted equivalent amount.

• (4) In this regulation—

• “the adjusted lower tier ill-health pension” means the lower tier ill-health pension payable under paragraph (2) calculated—excluding an amount equal to the amount of any added pension which had been included in the calculation of the lower tier ill-health pension, andwithout the deduction for any commuted portion of the pension;

• “the adjusted equivalent amount” means—in the case of a member who is entitled to an equivalent amount to the NFPS lower tier ill-health pension, that amount calculated—excluding from the calculation the amount of any additional period of service purchased under Part 11 of the NFPS, andwithout the deduction of any commuted portion;in the case of a member who is entitled to the equivalent amount to the 1992 Scheme lower tier ill-health pension, that amount calculated without the deduction of any commuted portion.

• “the member’s assumed period of pensionable service” means the period expressed in years—beginning with the day after the member’s continuous period of pensionable service ceased, andending with the day before the day on which the member would reach normal pension age.

Early payment of retirement pension to deferred member

67

A deferred member who has not reached deferred pension age is entitled to immediate payment of a retirement pension calculated under regulation 60 (annual rate of retirement pension (deferred members)) without subtracting the early payment reduction if the following conditions are satisfied—

• (a) the member has given written notice requesting payment of the pension before deferred pension age to the scheme manager;

• (b) in the opinion of the IQMP the member is incapable of undertaking regular employment because of infirmity of mind or body and this incapacity will continue until deferred pension age; and

• (c) the scheme manager has determined that the member is entitled to the early payment of the retirement pension.

Review of ill-health award or early payment of retirement pension

68

• (1) Where a member (P) has been in receipt of an ill-health award under regulation 65 (entitlement to lower tier ill-health pension and higher tier ill-health pension) for less than 10 years, and is under deferred pension age, the scheme manager must consider, at such intervals as it considers appropriate, whether P has become capable—

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

• (b) of undertaking regular employment.

• (2) The scheme manager must consider, at such intervals as it considers appropriate before the member reaches deferred pension age, in relation to a pensioner member who was a deferred member and whose pension is being paid early by virtue of regulation 67 (early payment of retirement pension to a deferred member), whether the member has become capable of undertaking regular employment.

Consequences of review

69

• (1) If, on such consideration as is mentioned in regulation 68(1) (review of ill-health award or early payment of retirement pension), the scheme manager determines[^f00044] that a member (H) who is in receipt of a higher tier ill-health pension has become capable of undertaking regular employment, H’s entitlement to that pension must cease with immediate effect.

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

• (3) If—

• (a) on such consideration as is mentioned in regulation 68(1) (review of ill-health award or early payment of retirement pension), the scheme manager determines that a member (L) who is in receipt of a lower tier ill-health pension has become capable of performing the duties appropriate to the role from which L retired on grounds of ill-health; and

• (b) the employer makes L an offer of employment in that role (“a paragraph (3)(b) offer”),

L’s entitlement to a lower tier ill-health pension must cease whether L accepts or declines the offer.

• (4) The employer must by written notice when making a paragraph (3)(b) offer specify a date by which, if the member has not accepted the offer, the member will be taken to have declined it.

• (5) A lower tier ill-health pension ceases to be payable on the earlier of the following dates—

• (a) the date on which a member re-enters scheme employment pursuant to a paragraph (3)(b) offer; or

• (b) such date after the paragraph (3)(b) offer is made as the employer specifies by notice under paragraph (4).

• (6) Where a member declines a paragraph (3)(b) offer, a deferred member’s account must be established under regulation 48 (account established after ill-health award ceases to be payable) from the date on which that member’s ill-health award ceases to be payable in accordance with paragraph (5).

• (6A) Where L is entitled to an equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the 1992 Scheme lower tier ill-health pension, paragraphs (3) and (5) apply as if the reference to “lower tier ill-health pension” included an equivalent amount to the NFPS lower tier ill-health pension or an equivalent amount to the 1992 Scheme lower tier ill-health pension, as the case may be.

• (7) If, on such consideration as is mentioned in regulation 68(2) (review of ill-health award or early payment of retirement pension), the scheme manager has obtained the IQMP’s opinion which states that a deferred member (P) whose deferred pension is being paid early has become capable of undertaking regular employment, P’s entitlement to early payment of the pension must cease with immediate effect and P’s deferred member’s account must be adjusted under regulation 47 (adjustment of account after early payment of deferred pension ceases).

CHAPTER 5 — Payment of retirement benefits

Commencement of pensions

70

• (1) The first period for which any retirement pension is payable immediately on a member leaving scheme employment, begins with the day after the date on which the employment ends where the member has made a claim for payment of that pension before that date.

• (2) Where an active member has not claimed payment of the retirement pension before the date on which that member retires, the pension will be payable from a date after the claim is made as notified to the member by the scheme manager.

• (3) Where the employer of an active member has determined to pay that member a retirement pension before the member reaches normal pension age in exercise of the powers in regulation 62 (employer initiated retirement), the first period for which the pension is payable begins on the day after the member’s scheme employment ends.

• (4) In the case of an active member who exercises the partial retirement option, the first period for which any retirement pension is payable begins on the day after the date on which the partial retirement option is exercised.

• (5) In the case of a deferred member, the first period for which payment of a retirement pension is to be payable begins on the date on which the member attains deferred pension age where a deferred member has claimed payment of a retirement pension unless that member gives written notice to the scheme manager before the member reaches deferred pension age—

• (a) requesting to defer payment by notice given to the scheme manager more than three months before the member reaches deferred pension age and any such deferral must not extend beyond the day before the member’s 75th birthday;

• (b) requesting payment of the retirement pension before deferred pension age after the deduction of the early payment reduction; or

• (c) requesting the early payment of the retirement pension under regulation 67 (early payment of retirement pension to deferred member) on grounds of incapacity to undertake regular employment.

• (6) Where an active member is entitled to a lower tier ill-health pension or a higher tier ill-health pension under regulation 65 (entitlement to lower tier ill-health pension and higher tier ill-health pension) the first period for which a retirement pension is payable is the day after the date on which the member’s scheme employment is terminated.

• (7) Where a deferred member has made a request referred to in paragraph (5)(c) and is entitled to the early payment of a retirement pension, the first period for which the pension is payable begins on the date on which the deferred member became incapable of undertaking regular employment because of infirmity of body or mind, or if that date cannot be ascertained, from the date of the member’s request to the scheme manager for early payment.

• (8) Where a deferred member has made a request referred to in paragraph (5)(a) or (b), the pension will be payable from a date after the claim for it is made which is notified to the member by the scheme manager.

Option to commute part of pension

71

• (1) A member who becomes entitled to the immediate payment of a retirement pension may opt under this regulation to exchange part of the pension for a lump sum.

• (2) The option may only be exercised—

• (a) by written notice to the scheme manager which sets out the amount to be commuted; and

• (b) before the first payment of the pension is made.

• (3) If a member exercises the option, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

• (4) A member may not exchange for a lump sum more than the lesser of—

• (a) 25% of the pension ... under this regulation; or

• (b) the proportion of the pension to the extent that it would result in a scheme chargeable payment[^f00045] for the purposes of Part 4 of FA 2004.

• (5) This regulation does not apply to a pension derived from pension credit rights if the pension debit member from whose rights the pension is derived has received a lump sum under this regulation before the date on which the pension sharing order takes effect.

• (6) This regulation does not apply to a higher tier ill-health pension.

CHAPTER 6 — Allocation of part of pension

Allocation election

72

• (1) This regulation applies in relation to a retirement earned pension payable in respect of a member’s pensionable service under this scheme.

• (2) An active member or deferred member may elect to allocate up to a third of the amount of the annual rate of any of the member’s retirement pensions under this scheme to a beneficiary (“allocation election”).

• (3) The beneficiary of an allocation election must be a person who, when the allocation election is made is—

• (a) the spouse, civil partner or cohabiting partner of the active member or the deferred member; or

• (b) with the consent of the scheme manager, any other person who is substantially dependent on the active member or deferred member and would have been a dependant of the member for the purposes of paragraph 15(2) or (3) of Schedule 28 to FA 2004 if the member had died when the election was made.

• (4) The scheme manager may withhold consent under paragraph (3)(b) if the scheme manager is not satisfied that the person is substantially dependent on the active member or deferred member.

• (5) If a member wishes to allocate pension to more than one beneficiary, a separate election must be made in respect of each beneficiary.

• (6) Where more than one portion of a particular pension is allocated, the total of the allocated portions of that pension must not exceed the portion of that pension retained by the active or deferred member.

• (7) If paragraph (8) applies, the member may elect to allocate only so much of the pension (after subtracting the commutation amount, if any) that exceeds the guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the scheme manager having regard to actuarial guidance.

• (8) This paragraph applies if the member has a guaranteed minimum under section 14 (earner’s guaranteed minimum) of PSA 1993 in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer payment from another pension scheme in respect of which the member had such a guaranteed minimum.

Making an allocation election

73

• (1) When an active or deferred member intends to make an allocation election, that member must—

• (a) satisfy the scheme manager that that member is in good health and has a normal life expectancy; and

• (b) give the scheme manager written notice of an allocation election specifying—

• (i) the portion,

• (ii) the name and address of the beneficiary,

• (iii) the sex of the beneficiary, and

• (iv) the date of birth of the beneficiary.

• (2) The notice of allocation, which may be sent by post, must be given not earlier than two months before the pension comes into payment.

• (3) Where the requirements in paragraphs (1) and (2) have been satisfied, the scheme manager must notify the member that it has accepted the allocation election.

• (4) An election has no effect if the member or the beneficiary dies before the notice of allocation takes effect.

Effect of allocation

74

• (1) If an allocation election takes effect, the member’s retirement pension is reduced accordingly.

• (2) If a notice of allocation takes effect, it does so on the day on which the retirement pension comes into payment.

• (3) Where a notice of allocation has taken effect, and the beneficiary survives the pensioner, the scheme manager must, from the date of the pensioner’s death, pay the beneficiary a pension for life (“allocated pension”) of an amount determined by the scheme manager in accordance with actuarial guidance in force when the notice of allocation takes effect, having regard to—

• (a) the amount of retirement pension allocated under the election; and

• (b) the age of the pensioner and beneficiary at the date when the notice of allocation was given.

• (4) Where more than one portion of a member’s retirement pension has been allocated, a separate calculation must be made under paragraph (3) in respect of each allocation.

• (5) Where—

• (a) a notice of allocation has taken effect; and

• (b) the beneficiary pre-deceases the pensioner,

the scheme manager must pay to the pensioner (distinguishing it from any other pension payable to that pensioner) the portion of pension that had been allocated (“the failed allocation pension”).

• (6) Where paragraph (5) applies, the pensioner is not entitled to recover from the scheme manager the amount of any deduction made in respect of the failed allocation pension.

• (7) An allocation ceases to have effect for the purposes of this regulation if it would result in a pension being paid under this regulation to a beneficiary who is neither—

• (a) the member’s spouse or civil partner or cohabiting partner on—

• (i) the date on which the member becomes entitled to the pension, or

• (ii) when the member dies; nor

• (b) a dependant of the member for the purposes of paragraph 15(2) or (3) of Schedule 28 to FA 2004 when the member dies.

Adjustment of allocated benefit

75

• (1) The amount of allocated pension payable to the beneficiary of an allocation election may be adjusted in a manner determined by the scheme manager if—

• (a) the member who made the allocation election dies after reaching the age of 75; and

• (b) on the death of the member, the amount of allocated pension payable to the beneficiary does not qualify as a dependants’ scheme pension under section 167 (the pension death benefit rules) of FA 2004[^f00046].

• (2) In this regulation, “allocated pension” has the same meaning as that given in regulation 74(3) (effect of allocation).

PART 6 — Death benefits

CHAPTER 1 — Interpretation

Meaning of “surviving partner”

76

• (1) For the purposes of these Regulations, a person is a surviving partner in relation to a member if, at the date of the member’s death, that person is—

• (a) the spouse or civil partner of the member;

• (b) cohabiting with the member and—

• (i) is not married or in a civil partnership with that member, and

• (ii) is not the spouse or civil partner of any other person, and

• (iii) could enter into a marriage or civil partnership under the law of England and Wales with the member but has not done so,

• (iv) is financially dependent on the scheme member, or is, with the scheme member, in a state of mutual financial dependency, and

• (v) is in a long-term relationship with the scheme member.

• (2) In paragraph (1) “long–term relationship” means a relationship that has continued for a period of at least two years ending with the date on which the question of the person’s status in relation to the member falls to be considered, or such shorter period as the scheme manager may in any particular case think fit.

• (3) In these Regulations, “cohabiting partner” means a person who satisfies the requirements in paragraph (1)(b).

Meaning of “initial period”

77

For the purposes of these Regulations, the “initial period” is the period of 13 weeks commencing on the day after the death of the member during which a bereavement pension may be payable to any surviving partner or eligible child.

CHAPTER 2 — Pensions for surviving partners

Surviving partner’s pension payable on death of active member

78

• (1) This regulation applies in relation to the surviving partner of a member who dies if, at the date of death, the member is an active member and has qualifying service of at least three months.

• (2) A surviving partner to whom this regulation applies is entitled to a surviving partner’s pension.

• (3) Subject to paragraph (4) and regulation 82 (reduction of pensions in cases of wide age disparity), the annual rate of the surviving partner’s pension is an amount equal to half the pension which the member would have been entitled to draw if the member had retired on the grounds of ill-health with the award of a higher tier ill-health pension on the date of the member’s death.

• (4) Where the member referred to in paragraph (1) was a transition member who had additional pension benefit under rule 7A or 7B of Part 3 of the NFPS or additional pension benefit under rule B5B or B5C of the 1992 Scheme, half the amount of additional pension benefit is added to the amount of the annual rate of the surviving partner’s pension referred to in paragraph (3).

Surviving partner’s pension payable on death of deferred member

79

• (1) This regulation applies in relation to the surviving partner of a member who at the date of death is a deferred member.

• (2) A surviving partner to whom this regulation applies is entitled to a surviving partner’s pension.

• (3) Subject to regulation 82 (reduction in pensions in cases of wide age disparity), the annual rate of surviving partner’s pension is an amount equal to half of the sum of the provisional amount of deferred pension specified in the deferred member’s account and the amount of the added pension (if any) specified in the added pension account.

Surviving partner’s pension payable on death of pensioner member

80

• (1) This regulation applies in relation to the surviving partner of a member (P) who at the date of death is a pensioner member.

• (2) A surviving partner to whom this regulation applies is entitled to a surviving partner’s pension.

• (3) Subject to regulation 82 (reduction in pensions in cases of wide age disparity), the annual rate of the surviving partner’s pension is equal to half the amount of the annual rate of the retirement pension payable to P immediately before P’s death.

• (4) Where an early payment reduction had been made on P’s retirement, the amount in paragraph (2) is half of the amount of retirement pension that would have been payable to P if that reduction had not been made.

Bereavement pension: surviving partner

81

• (1) Subject to paragraph (2), the surviving partner of an active member, or a pensioner member, is entitled to a bereavement pension for the initial period.

• (2) The surviving partner of an active member is only entitled to a bereavement pension if the active member had at least three months qualifying service.

• (3) If the member was an active member at the date of the member’s death, the weekly amount of the bereavement pension payable under paragraph (1) is equal to the difference between the weekly amount of pensionable pay which the member was paid at the date of the member’s death or, where the member was treated as receiving assumed pensionable pay, the weekly amount of assumed pensionable pay, and the weekly amount of the surviving partner’s pension.

• (4) If the member was a pensioner member at the date of the member’s death, the weekly amount of the bereavement pension payable under paragraph (1) is equal to the difference between the weekly amount of the pension to which the member was entitled at the date of the member’s death, and the weekly amount of the surviving partner’s pension.

Reduction in pensions in cases of wide age disparity

82

• (1) This regulation applies if on the death of a member of this scheme, a surviving partner’s pension is payable to a person who is more than 12 years younger than the member.

• (2) The annual rate of that pension is reduced by the lower of—

• (a) 50% of the amount of the annual rate of the pension so calculated; or

• (b) $2.5×(N−12)%$ of that amount,

where N is the number of whole years by which the surviving partner is younger than the member.

Survivor’s guaranteed minimum pensions

83

• (1) If a person who is the surviving spouse or civil partner of a deceased active, deferred or pensioner member has a guaranteed minimum under section 17[^f00047] of PSA 1993 in relation to benefits in respect of the deceased member under this scheme—

• (a) nothing in these regulations permits or requires anything that would cause requirements made by or under that Act in relation to such a person and such a person’s rights under a scheme not to be met in the case of the person;

• (b) nothing in these regulations prevents anything from being done which is necessary or expedient for the purposes of meeting such requirements in the case of the person.

• (2) Paragraphs (3) and (4) are without prejudice to the generality of paragraph 1.

• (3) This paragraph applies if apart from this regulation—

• (a) no pension would be payable to the surviving partner under this Part; or

• (b) the weekly rate of the pensions payable would be less than the guaranteed minimum.

• (4) If paragraph (3) applies—

• (a) a pension the weekly rate of which is equal to the guaranteed minimum is payable to the surviving partner for life or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable; or

• (b) if paragraph (3)(b) applies, the pensions payable are increased to the amount specified in paragraph (a).

• (5) Paragraph (4) does not apply to a pension—

• (a) that is forfeited—

• (i) as a result of a conviction for treason, or

• (ii) in a case where the relevant offence under regulation 171 (forfeiture: offences committed by members, surviving partners or eligible children) falls under paragraph (b) of the definition in that regulation of “relevant offence” (Official Secrets Acts offences); or

• (b) where that pension is commuted under regulation 167 (commutation of small pensions) where the conditions in regulation 60 of the Occupational Pension Schemes (Contracting-out) Regulations 1996[^f00048] are met.

CHAPTER 3 — Pensions for eligible children

Eligible child’s pension

84

• (1) If a member, who has three months qualifying service, dies leaving an eligible child, an eligible child’s pension and, depending on the deceased member’s circumstances, a bereavement pension is payable in respect of the child.

• (2) An eligible child’s pension is not payable in respect of any period before a child’s birth.

• (3) If the person ceases to be an eligible child after the date of the member’s death, the pension ceases to be payable unless and until the child becomes an eligible child again, but, if the child does not cease to be an eligible child, the pension is payable for life.

Meaning of “eligible child”

85

• (1) In these Regulations, “child”, in relation to a deceased member, means—

• (a) a natural child, step-child or adopted child of the member; or

• (b) the natural child, step-child or adopted child of the member’s spouse, civil partner or cohabiting partner; or

• (c) any natural child of the member who was born after the member’s death and with whom the child’s mother was pregnant at the date of the member’s death.

• (2) A child of the deceased member is an “eligible child” if—

• (a) the child was at the date of the deceased member’s death financially dependent on the deceased member;

• (b) the child is not married or in a civil partnership; and

• (c) the child satisfies any of the conditions A to C.

• (3) Condition A is that the person is under the age of 18.

• (4) Condition B is that the person is in full-time education or on a course of at least one year’s duration and has not reached the age of 23.

• (5) Condition C is that the person is dependent on the member at the date of the deceased’s death by reason of permanent incapacity of mind or body.

Eligible child’s pension on death of active member

86

• (1) This regulation applies in relation to an eligible child of a member who dies if, at the date of death, the member is an active member and has qualifying service of more than three months.

• (2) Subject to paragraph (3), the annual rate of an eligible child’s pension to which this regulation applies is an amount equal to the specified proportion of the pension which the member would have been entitled to draw if the member had retired on the grounds of ill-health with the award of a higher tier ill-health pension on the date of the member’s death.

• (3) Where the member referred to in paragraph (1) was a transition member who had additional pension benefit under rule 7A or 7B of Part 3 of the NFPS or additional pension benefit under rule B5B or B5C of the 1992 Scheme, the amount of the additional pension benefit is added to the amount of the higher tier ill-health pension referred to in paragraph (2).

Eligible child’s pension payable on death of deferred member

87

• (1) This regulation applies in relation to an eligible child of a member who dies if, at the date of death, the member is a deferred member.

• (2) The annual rate of an eligible child’s pension is an amount equal to the specified proportion of the sum of the provisional amount of deferred pension specified in the deferred member’s account and the amount of the added pension (if any) specified in the added pension account.

Eligible child’s pension payable on death of pensioner member

88

• (1) This regulation applies in relation to an eligible child of a member who dies if, at the date of death, the member is a pensioner member (P).

• (2) Subject to paragraph (3), the annual rate of an eligible child’s pension is an amount equal to the specified proportion of the amount of retirement pension payable to P immediately before P’s death.

• (3) Where an early payment reduction had been made on P’s retirement, the amount in paragraph (2) is the specified proportion of the amount of retirement pension that would have been payable if that reduction had not been made.

Specified proportion

89

• (1) The specified proportion is one quarter where there is one eligible child at the date of the member’s death.

• (2) If there is more than one eligible child at the date of the member’s death the specified proportion is half of the pension mentioned in regulations 86 (eligible child’s pension on death of active member), 87 (eligible child’s pension payable on death of deferred member) and 88 (eligible child’s pension payable on death of pensioner member) divided by the number of eligible children so that each eligible child receives an equal share.

• (3) If a person ceases to be an eligible child, that person’s pension will cease to be paid and where there is still more than one eligible child, the amount of that pension must be distributed between the remaining eligible children (if any).

Increase in eligible child’s pension where there is no surviving partner

90

• (1) This regulation applies if at the date of the member’s death there was no person who was entitled to a surviving partner’s pension.

• (2) If this regulation applies and there is an eligible child, that child is also entitled to the amount of pension in accordance with paragraphs (3) or (4) which the surviving partner would have received—

• (a) under regulation 78 (surviving partner’s pension payable on death of active member) if the member (P) was an active member at the date of P’s death;

• (b) under regulation 79 (surviving partner’s pension payable on death of deferred member) if P was a deferred member at the date of P’s death;

• (c) under regulation 80 (surviving partner’s pension payable on death of pensioner member) if P was a pensioner member at the date of P’s death.

• (3) If there is only one eligible child, that child receives an additional amount equal to the amount ascertained in accordance with paragraph (2).

• (4) If there is more than one eligible child at the date of P’s death, the amount ascertained in accordance with paragraph (2) is divided between the number of eligible children so that each eligible child receives an equal share.

• (5) If a person ceases to be an eligible child, that person’s share of the amount ascertained in accordance with paragraph (2) will cease to be paid and the share must be distributed between the remaining eligible children (if any).

Increase in eligible child’s pension where member was pension debit member

91

If the member’s benefits were at the date of death subject to a reduction under section 31 of the WRPA, any eligible child’s pension must be calculated as though that reduction had not been made.

Bereavement pension: eligible child

92

• (1) If a surviving partner’s pension is not payable on the death of the member, a bereavement pension is payable to an eligible child who is entitled to an eligible child’s pension on the death of an active member or a pensioner member.

• (2) If the surviving partner dies before the end of the initial period and a bereavement pension was payable to the surviving partner, a bereavement pension is payable to any eligible child for the remaining part of the initial period or until the child ceases to be eligible for an eligible child’s pension if that is earlier.

• (3) If the member was an active member at the date of the member’s death, the weekly amount of the bereavement pension payable under paragraphs (1) or (2) is equal to the difference between the weekly amount of pensionable pay which the member was paid at the date of the member’s death or, where the member was treated as receiving assumed pensionable pay, the weekly amount of assumed pensionable pay, and the weekly amount of the eligible child’s pension.

• (4) If the member was a pensioner member, the weekly amount of the bereavement pension payable under paragraphs (1) or (2) is equal to the difference between the weekly amount of the pension to which the member was entitled at the date of the member’s death, and the weekly amount of the eligible child’s pension.

• (5) If there is more than one eligible child, the weekly amount of the bereavement pension payable under paragraphs (1) or (2) is divided by the number of eligible children so that each receives an equal share.

• (6) If a person ceases to be an eligible child before the end of the initial period, that person’s share of the bereavement pension will cease to be paid and the share will be distributed between the remaining eligible children (if any).

CHAPTER 4 — Lump sum death benefits

Meaning of “final pay”

93

• (1) In this Chapter, “final pay” means the greater of the following amounts—

• (a) the amount of the member’s pensionable pay during the member’s continuous period of pensionable service in the period of 365 days ending with the last day of pensionable service; and

• (b) the amount of the member’s pensionable pay during the member’s continuous period of pensionable service in the period of three years ending with the last day of pensionable service, divided by three.

• (2) If the member’s continuous period of pensionable service was less than 365 days, the amount in paragraph (1)(a) is an amount equal to the member’s annualised final pay.

• (3) For the purpose of determining which of the amounts mentioned in paragraph (1) is the greater—

• (a) if the member’s continuous period of pensionable service was less than three years the amount in paragraph (1)(b) is the total pensionable pay received for that service divided by the number of years in pensionable service calculated in accordance with regulation 182 (calculation of periods of membership and service); and

• (b) if a member is treated as receiving assumed pensionable pay for any period included in paragraph (1)(a) or (1)(b), pensionable pay in this regulation includes that assumed pensionable pay.

• (4) But if the continuous period of pensionable service includes the day 29th February, paragraphs (1)(a) and (2) have effect with the substitution for “365” of “366”.

• (5) Where the member referred to in paragraph (1) is a transition member and was in pensionable service under the 1992 Scheme or the NFPS, as the case may be, during the period referred to in paragraph (1)(a) or (1)(b) and service from that scheme is included in the qualifying service for the pension account in respect of which the lump sum death benefit is paid—

• (a) pensionable pay in paragraph (1)(a) or (1)(b) includes average pensionable pay construed in accordance with rule G1 where the person was a member of the 1992 Scheme or pensionable pay under rule 1 or rule 2 of Part 11 of the NFPS where the person was a firefighter or special firefighter member of the NFPS, and

• (b) pensionable service includes pensionable service construed in accordance with rule F1, where the person was a member of the 1992 Scheme or pensionable service construed in accordance with rules 2 to 5 of Part 10 of the NFPS.

Meaning of “annualised final pay”

94

• (1) For the purpose of this Chapter, a member’s annualised final pay is FP x 365/N where—

• (a) FP is the member’s pensionable pay during the member’s continuous period of pensionable service; and

• (b) N is the number of days in that period.

• (2) But if the continuous period of pensionable service includes the day 29th February, paragraph (1) has effect with the substitution for “365” of “366”.

Person to whom lump sum death benefit payable

95

The scheme manager may, at its absolute discretion, pay any lump sum death benefit payable under this Chapter to or for the benefit of the member’s nominee, personal representatives or any person appearing to the scheme manager to have been a relative or dependent of the member.

Lump sum payable on death of active member

96

• (1) If an active member dies, the scheme manager must pay a lump sum death benefit.

• (2) The amount of the lump sum death benefit is an amount equal to three times the amount of the member’s final pay.

• (3) Where an active member has more than one active member’s account, a lump sum death benefit is payable in respect of each of those accounts.

• (4) Where the active member’s account in respect of which the lump sum death benefit will be paid included pensionable service reckonable under rule F1 of the 1992 Scheme as qualifying service and a dependent relative’s gratuity has been paid under rule E3 of the 1992 Scheme or the payment of the balance of contributions to estate has been paid under rule E4 of the 1992 Scheme those amounts must be deducted from the amount of lump sum death benefit payable under this regulation.

Lump sum payable on death of pensioner member

97

• (1) This regulation applies if a pensioner member dies within five years of the pension coming into payment.

• (2) If this regulation applies, the scheme manager must pay a lump sum death benefit.

• (3) The amount of the lump sum death benefit is equal to—

• (a) the total annual amount of the member’s pensions, multiplied by five; less

• (b) the total amount of any pension payments made to the member under this scheme.

• (4) In paragraph (3)(a), “total annual amount of the member’s pensions” means the total of the annual rate of the retirement pension shown in the member’s pension accounts calculated as if the beginning date for that pension were the date of the member’s death.

• (5) For the purpose of this regulation any amounts paid or payable to or in respect of the member in the capacity of a pension credit member are disregarded.

Lump sum payable on death in certain cases

98

Where a person (P) at the time of P’s death was a pensioner member of this scheme and an active member of this scheme, the amount of the lump sum death benefit payable is the greater of the amount of lump sum death benefit payable under regulation 96 (lump sum payable on the death of active member) and the amount of the lump sum death benefit payable under regulation 97 (lump sum payable on the death of a pensioner member).

Lump sum payable on death of pension credit member

99

• (1) If a pension credit member dies before any benefits derived from a pension credit have become payable to the member, the scheme manager must pay a lump sum death benefit in accordance with paragraph (2).

• (2) The amount of the lump sum death benefit that is payable under paragraph (1) is equal to the product of 2.25 and the annual rate of the pension credit member’s pension to which that member would have been entitled if that member had been entitled to the immediate payment of the pension at the date of death.

• (3) If a pension credit member dies within five years of the pension credit member’s pension becoming payable, and before attaining the age of 75, the scheme manager must pay a lump sum death benefit in accordance with paragraph (4).

• (4) The amount of the lump sum death benefit that is payable under paragraph (3) is the difference between—

• (a) the amount that is five times the amount of the pension credit member’s pension; and

• (b) the instalments of pension that have been paid.

• (5) In paragraph (4), “amount of the pension credit member’s pension” means the annual amount of that pension at the date the pension credit member’s pension came into payment.

• (6) If the deceased member was a pension credit member entitled to two or more pension credits, the lump sum death benefits under this scheme are payable in respect of the member as if the member were two or more members, each being entitled to one of the pension credits.

CHAPTER 5 — Payment of death benefits

Payment of pensions under this Part

100

• (1) A surviving partner’s pension or eligible child’s pension is payable from the day after the date of the member’s death.

• (2) An eligible child’s pension payable in respect of an eligible child aged under 18 must be paid to such other person as the scheme manager determines and the scheme manager must require the person to apply it for the eligible child’s benefit in accordance with the scheme manager’s directions.

Surviving partner’s pensions and eligible child’s pensions: suspension and recovery

101

• (1) This regulation applies if—

• (a) on a member’s death a pension has been awarded and paid under this Part; and

• (b) it later appears to the scheme manager that the member or the person to whom the pension has been paid made a false declaration or deliberately suppressed a material fact in connection with the award.

• (2) The scheme manager may—

• (a) cease paying the pension; and

• (b) recover any payment made under the award.

• (3) Paragraph (2) does not affect the scheme manager’s right to recover a payment or overpayment under any other provision where the scheme manager considers it appropriate to do so.

Provisional awards of eligible child’s pensions: later adjustments

102

• (1) This regulation applies where after the death of an active member, deferred member or pensioner member—

• (a) a pension is paid in respect of one or more persons under this Part on the basis that they were eligible children as at the date of the member’s death and that there were then no other eligible children; and

• (b) subsequently it appears—

• (i) that a person in respect of whom such a pension has been paid was not an eligible child on the date of death,

• (ii) that a further person was an eligible child, or

• (iii) that a child who was born after the member’s death is an eligible child.

• (2) The scheme manager may make such adjustments in the amount of the pensions payable in respect of the children in question as are required in view of the facts as they subsequently appear and these adjustments may apply retrospectively.

• (3) Paragraph (2) does not affect the scheme manager’s right to recover a payment or overpayment in any case where the scheme manager considers it appropriate to do so.

Adjustment of eligible child’s awards consequent on re-instatement of pension benefits

103

• (1) This regulation applies where a person (P) who would be eligible to receive benefits as a surviving partner or eligible child following the death of an active member, deferred member or pensioner member, has been convicted of the murder or manslaughter of that member and that conviction has subsequently been quashed on appeal.

• (2) If P is then eligible to receive a surviving partner’s pension, any increase in an eligible child’s pension under regulation 90 (increase in eligible child’s pension where there is no surviving partner) ceases to be payable from the date on which the conviction is quashed.

• (3) If P is then eligible to receive an eligible child’s pension, and if more than one person is receiving an eligible child’s pension on the day before the conviction is quashed, the amount of each eligible child’s pension is reduced from the date on which the conviction is quashed to an amount of the eligible child’s pension determined according to the specified proportion which would have applied to that number of eligible children.

Adjustment of benefits to comply with FA 2004 where members die over 75

104

• (1) This regulation applies if—

• (a) a member dies after reaching the age of 75; and

• (b) apart from this regulation, any part of a pension to which any person becomes entitled under this Part on the death would not qualify as a dependants’ scheme pension for the purposes of section 167 of FA 2004 (the pension death benefit rules).

• (2) The benefit payable to the person may be adjusted in such manner as is determined by the scheme manager so that it qualifies as a dependants’ scheme pension for the purposes of section 167 of FA 2004.

PART 7 — Benefits for pension credit members

Entitlement to pension credit members’ pension

105

• (1) A pension credit member (P) of this scheme is entitled to the immediate payment of a pension credit member’s pension under this scheme if—

• (a) P has reached deferred pension age;

• (b) the pension sharing order under which P is entitled to the pension credit has taken effect; and

• (c) P has claimed payment of the pension.

• (2) If P is entitled to two or more pension credits, P is entitled to a pension credit member’s pension in respect of each pension credit.

Annual rate of pension credit member’s pension

106

The annual rate of a pension credit member’s pension is calculated by—

• (a) taking the amount of credited pension specified in the pension credit member’s account; and

• (b) subtracting the commutation amount (if any) specified in that account in relation to that amount.

Reduction in pension debit member’s benefits

107

The benefits to which a pension debit member is entitled under these Regulations are subject to the reduction of the relevant amount calculated in accordance with regulation 54 (establishment of pension credit member’s account).

Pension credit member’s rights

108

Benefits that are attributable (directly or indirectly) to a pension credit may not be aggregated with any other benefit to which the pension credit member is entitled under this scheme.

Commutation of part of pension

109

• (1) A pension credit member who becomes entitled to payment of a pension credit member’s pension under this scheme may opt to exchange part of the pension for a lump sum.

• (2) The option may only be exercised by notice —

• (a) to the scheme manager not earlier than four months before the later of—

• (i) the date on which the pension sharing order comes into effect, or

• (ii) the date on which the person attains deferred pension age;

• (b) in such form as the scheme manager requires; and

• (c) before the first payment of the pension is made.

• (3) If a pension credit member exercises the option under this regulation, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member is to be paid a lump sum of £12.

• (4) The commuted portion must not exceed one quarter of the amount of the pension credit member’s pension.

• (5) A pension credit member may not exchange pension for a lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension scheme etc.) of FA 2004 (see section 241 of that Act).

• (6) This regulation does not apply if the pension debit member from whose rights the pension is derived received a lump sum under Part 5 (retirement benefits) before the date on which the pension sharing order takes effect.

PART 8 — Contributions

CHAPTER 1 — Member contributions

Member contributions

110

• (1) Subject to regulations 111 to 113 (contributions during absences), an active member of this scheme must pay contributions to the scheme in respect of a scheme employment at the contribution rate applicable to the annual pensionable pay that member is receiving in the pay period in which 1st April falls for that employment (or in the case of an active member whose membership commences after 1st April in any year, on the annual pensionable pay the member receives at the commencement of that membership).

• (2) The contribution rate applicable to a scheme employment is as specified in the following table, with the contribution rate specified in the appropriate column for the year to be considered applicable to the band of pensionable pay specified in the first column into which the active member’s annual pensionable pay, rounded down to the nearest whole pound, falls:

Pensionable pay range for an employment	Contribution rate 1st April 2015-31st March 2016
Up to £27,000	10.0%
£27,001 to £50,000	12.2%
£50,001 to £142,500	13.5%
£142,501 or more	14.5%
Pensionable pay range for an employment	Contribution rate 1st April 2016 – 31st March 2017
---	---
Up to £27,270	10.0%
£27,271 to £50,500	12.5%
£50,501 to £142,500	13.5%
£142,501 or more	14.5%
Pensionable pay range for an employment	Contribution rate 1st April 2017 – 31st March 2018
---	---
Up to £27,543	10.5%
£27,544 to £51,005	12.7%
£51,006 to £142,500	13.5%
£142,501 or more	14.5%
Pensionable pay range for an employment	Contribution rate from 1st April 2018
---	---
Up to £27,818	11.0%
£27,819 to £51,515	12.9%
£51,516 to £142,500	13.5%
£142,501 or more	14.5%

• (3) The amount of pensionable pay of a retained or volunteer firefighter for the purpose of the first column of the table must be that firefighter’s reference pay.

• (4) The amount of pensionable pay of a part-time regular firefighter for the purpose of the first column of the table must be the amount of pensionable pay of a whole-time regular firefighter of equivalent role and length of service.

• (5) Where there is a change in scheme employment, or a material change which affects the member’s pensionable pay in the course of a financial year and the revised amount of the pensionable pay falls into a different contribution rate band the scheme manager must determine that this rate should be applied and the scheme manager must inform the member of the contribution rate applicable and the date from which it is to be applied.

• (6) Where the scheme manager has determined under paragraph (5) that a different contribution rate applies, the member must pay contributions at that rate on the pensionable pay that member is receiving at that time.

• (7) For the purposes of identifying which is the applicable contribution rate under this regulation, any reduction in pensionable pay which arises as a consequence of any of the following circumstances is to be disregarded—

• (a) the actual or assumed enjoyment by the member of any statutory entitlement during any period away from work;

• (b) child-related leave;

• (c) leave of absence with permission;

• (d) sick leave;

• (e) leave due to injury;

• (f) reserve forces service leave;

• (g) absence due to a trade dispute; or

• (h) circumstances specified by the scheme manager in a particular case.

• (8) In these Regulations, “member contributions” means contributions which an active member may pay under this regulation, and regulations 111 to 113 (contributions during absences from work).

Contributions during absence from work due to illness, injury, trade dispute or authorised absence

111

• (1) An active member away from scheme employment by reason of illness or injury must pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the amount of any pensionable pay received, including statutory pay.

• (2) If an active member is absent from scheme employment by reason of illness or injury and is not entitled to receive pensionable pay (including statutory pay) for any period that member may elect to pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the amount of pay received immediately before the cessation of pay and if required by the scheme employer, pay the amount of employer contribution which the scheme employer would otherwise be required to pay by regulation 117(3) (employer contributions).

• (3) If an active member is absent on a trade dispute, the member may elect to pay the contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the assumed pensionable pay that member is treated as receiving and if required by the scheme employer, pay the amount of employer contribution which the scheme employer would otherwise be required to pay by regulation 117(3) (employer contributions).

• (4) If an active member is away from work during a period of authorised unpaid absence, the member may elect to pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the assumed pensionable pay that member is treated as receiving and if required by the scheme employer, pay the amount of employer contributions which the scheme employer would otherwise be required to pay by regulation 117(3) (employer contributions).

• (5) Where paragraph (2), (3) or (4) applies, the contributions must be paid before the end of the period of six months starting with the date on which the member is treated as receiving assumed pensionable pay.

Contributions during absence from work on reserve forces service leave

112

• (1) An active member (P), who is on reserve forces service leave and who is treated as receiving assumed pensionable pay, must pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions).

• (2) The amount of the contributions paid is calculated by multiplying the contribution rate by the lesser of the following amounts—

• (a) assumed pensionable pay;

• (b) the total of the actual pay received and any additional payment made by the scheme employer.

Contributions during child-related leave

113

• (1) An active member on child-related leave must pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by any pensionable pay received, including statutory pay but that pay does not include any amount that reduces the member’s actual pensionable pay on account of possible entitlement to statutory pay.

• (2) If an active member is on ordinary maternity leave, paternity leave or ordinary adoption leave and is not entitled to receive pensionable pay (including statutory pay) for any of that period, that member is treated for the purposes of these Regulations as if that member had paid contributions for that unpaid period under paragraph (1).

• (3) An active member on additional maternity leave, ... additional adoption leave , shared parental leave or parental leave who is not entitled to receive any pensionable pay (including statutory pay) for any of the period of child-related leave, may elect to pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the assumed pensionable pay that member is treated as receiving.

• (4) An election to pay contributions may only be made before the end of the period of 30 days starting with the date on which that member returns to work after the period of child-related leave, or if the member does not return to work, the day on which the member ceases to be employed by the employer.

Deduction and payment of contributions

114

• (1) The contributions required to be paid under regulation 110 (member contributions) may be deducted by the scheme employer from each instalment of pensionable pay as it becomes due unless another method of payment has been agreed between the scheme manager and the member.

• (2) Contributions required to be paid under regulation 112(1) (contributions during absence from work on reserve forces service leave) may be deducted from any payment made under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951[^f00049], to the extent that they are payable in respect of the same period.

• (3) Contributions which the member has elected to pay, or is required to pay, under regulations 111 (contributions during absence from work due to illness, injury, trade dispute or authorised absence) and 113 (contributions during child-related leave) may be paid by a lump sum or by deduction from instalments of pensionable pay as agreed between the scheme manager and the member.

Schedule 1 (payments for added pension)

115

Schedule 1 has effect (including as to the deduction of payments for added pension).

CHAPTER 2 — Refund of member contributions

Refund of all member contributions and payments for extra pension made by member

116

• (1) This regulation applies in relation to a continuous period of pensionable service under the scheme.

• (2) All member contributions and payments resulting from the election to make additional pension contributions under Schedule 1 are refundable if—

• (a) regulation 15 (opting out before the end of the first three months) applies; or

• (b) the member ceases to be in pensionable service under this scheme and—

• (i) the member has less than three months qualifying service,

• (ii) if a transfer payment has been received by this scheme in relation to the member it was from another occupational pension scheme, and

• (iii) the member has not reached GMP age under this scheme.

• (3) If paragraph (2)(b) applies, the member is entitled to be paid an amount equal to the sum of any member contributions and payments for added pension made by the member, less an amount equal to the income tax payable under section 205 of FA 2004 (short service refund lump sum charge) as a result of a refund of those contributions and payments.

• (4) If all member contributions and payments for added pension made by the member are refunded under this regulation, the member’s rights under this scheme in relation to the period of pensionable service are extinguished.

CHAPTER 3 — Employer contributions

Employer contributions

117

• (1) The Secretary of State must determine after consultation with the scheme actuary the employer contribution rate.

• (2) The employer of an active member of this scheme must pay contributions at the employer contribution rate on that member’s pensionable earnings.

• (3) The employer of an active member who is treated under regulation 18 (meaning of “assumed pensionable pay”) as receiving assumed pensionable pay must pay contributions at the employer contribution rate of the assumed pensionable pay that the member is treated as receiving.

• (4) The Secretary of State must notify the scheme manager of the employer contribution rate and the date from which this will take effect.

• (5) In these Regulations, “employer contribution” means the contributions payable under paragraph (2) or (3) of this regulation.

Employer additional contribution: ill-health award

118

• (1) Where a member (H) has retired with an entitlement to the immediate payment of a higher tier ill-health pension and a lower tier ill-health pension under regulation 65(2) (entitlement to lower tier ill-health pension and higher tier ill-health pension), H’s employer must pay a higher tier ill-health additional contribution.

• (2) The amount of the higher tier ill-health additional contribution is the amount determined and notified to H’s employer by the Secretary of State.

• (3) Where a member (L) has retired with an entitlement to the immediate payment of a lower tier ill-health pension and without any entitlement to a higher tier ill-health pension, L’s employer must pay a lower tier ill-health additional contribution.

• (4) The amount of the lower tier ill-health additional contribution is the amount determined and notified to L’s employer by the Secretary of State.

• (5) The employer must pay the higher tier ill health additional contribution or the lower tier ill health additional contribution, as the case may be, in equal instalments due on:

• (a) the date on which the member retires;

• (b) 1st April of the financial year following the financial year in which the first instalment was paid;

• (c) 1st April of the financial year following the financial year in which the second instalment was paid.

Refund of employer additional contribution for ill health award following review

119

• (1) Subject to paragraph (2), where the scheme manager has considered the entitlement of a member (P) to an ill-health award under regulation 68 (review of ill-health award or early payment of retirement pension) and as a consequence of that review the entitlement of P to either a higher tier ill-health pension or a lower tier ill-health pension has ceased, or the entitlement of P to both pensions has ceased, the scheme manager must pay the amount in paragraph (3) or (5), as the case may be, to the employer.

• (2) Where the employer has paid all the instalments of higher tier ill-health additional contributions required by regulation 118 (employer additional contribution: ill-health award), the scheme manager is not required to pay the employer the amount mentioned in paragraph (3).

• (3) Where P, as a result of a review under regulation 68 (review of ill-health award or early payment of retirement pension), ceases to be entitled to a higher tier ill-health pension and remains entitled to a lower tier ill-health pension, the scheme manager must pay an amount equal to the difference between the instalments of higher tier ill-health additional contribution which have been paid under regulation 118(1) (employer additional contribution: ill-health award) and the instalments of the lower tier ill-health additional contribution which would have been required to be paid under regulation 118(3) (employer additional contribution: ill-health award) if only the lower tier ill-health pension had been payable (“the notional payment”).

• (4) The scheme manager must determine the amount of the notional payment payable under paragraph (3).

• (5) Where P, as a result of a review under regulation 68 (review of ill-health award or early payment of retirement pension), ceases to be entitled to a higher tier ill health pension and to a lower tier ill-health pension or to a lower tier ill-health pension as the case may be and the employer has not paid all the instalments of higher tier ill-health additional contribution or lower tier ill-health additional contribution as required by regulation 118 (employer additional contribution ill-health award), the scheme manager must repay to the employer any instalments of higher tier ill-health additional contribution or lower tier ill-health additional contribution as the case may be, which have been paid in respect of P from the date that the entitlement ceased and no further instalments will be due in respect of P.

Employer additional contribution: employer initiated retirement

120

• (1) Where an employer has made a determination under regulation 62 (employer initiated retirement) to pay an active member who has not attained normal pension age a pension calculated in accordance with regulation 59 (annual rate of retirement pension (active members)) without making the early payment reduction, the employer must pay the employer initiated retirement additional contribution.

• (2) The amount of the employer initiated retirement additional contribution is calculated in accordance with actuarial guidance and that actuarial guidance must have regard to the difference between the pension that is payable under regulation 62 (employer initiated retirement) and the pension payable under regulation 59 (annual rate of retirement pension (active members)) reduced in accordance with regulation 61(3) (early payment reduction).

PART 9 — Firefighters’ Pension Fund

Interpretation of Part

121

In this Part—

• “FPF” has the meaning given in regulation 122 (establishment of Firefighters’ Pension Fund);

• “estimate” means the information referred to in regulation 125(1)(a) and (b) (information to be provided to the Secretary of State);

• “relevant financial year” means a financial year ending on or after 31st March 2016 in respect of which the scheme manager is required by regulation 125(1) to provide information to the Secretary of State;

• “revised estimate” means the revised information referred to in regulation 125(4);

• “the audited information” means—the audited accounts referred to in regulation 125(1)(d),any report by the auditor in relation to those accounts, andif the scheme manager revises the information referred to in regulation 125(1)(e) and (f), that revised information;

• “the un-audited information” means the information referred to in regulation 125(1)(c), (e) and (f).

Establishment of Firefighters’ Pension Fund

122

The Firefighters’ Pension Fund (“FPF”) established and maintained by the scheme manager for the purposes of the 1992 Scheme, and used by the scheme manager for payments and receipts required or authorised to be made under the NFPS, must also be used for the purpose of payments and receipts required or authorised to be made under these Regulations.

Payments into the Firefighters’ Pension Fund

123

The scheme manager must pay into the FPF—

• (a) any employer contribution paid by the employer which is required by regulation 117 (employer contributions);

• (b) any employer additional contribution by the employer in respect of a higher tier ill health pension which is required by regulation 118(1) (employer additional contribution: ill-health award);

• (c) any employer additional contribution paid by the employer in respect of a lower tier ill health pension which is required by regulation 118(3) (employer additional contribution: ill-health award);

• (d) any employer additional contribution paid by the employer in respect of an employer initiated retirement which is required by regulation 120(1) (employer additional contribution: employer initiated retirement);

• (e) any member contributions paid under regulation 110 (member contributions), regulation 111 (contributions during absence from work due to illness, injury, trade dispute or authorised absence), regulation 112 (contributions during absence from work on reserve forces service leave), or regulation 113 (contributions during child-related leave);

• (f) any member contributions for added pension paid under Schedule 1 (payments for added pension);

• (g) any club transfer value payment received; and

• (h) any transfer value payment received.

Payments to be made from the Firefighters’ Pension Fund

124

The scheme manager must make payments out of the FPF in respect of the following—

• (a) any repayment of a member’s contributions and payments required by regulation 116 (refund of all member contributions and payments for extra pension made by member);

• (b) any refund of the amount of the employer additional contribution for an ill-health award under regulation 119 (refund of employer additional contribution for ill-health award following review);

• (c) any pension or award payable under this scheme;

• (d) any club transfer value payment to be paid in respect of a member’s accrued benefits in this scheme; and

• (e) any transfer value payment required to be paid in respect of a member’s accrued benefits in this scheme.

Information to be provided to the Secretary of State

125

• (1) The scheme manager must for each financial year ending on or after 31st March 2016 (“relevant financial year”) send the following information in writing to the Secretary of State—

• (a) the total amount that the scheme manager estimates will be payable out of the FPF in that financial year;

• (b) the total amount that the scheme manager estimates will be credited to the FPF in that financial year;

• (c) the un-audited accounts relating to the FPF for that financial year;

• (d) the audited accounts relating to the FPF for that financial year;

• (e) the total amount paid out of the FPF in that financial year; and

• (f) the total amount paid into the FPF in that financial year.

• (2) The information in paragraph (1) must be sent in the form specified in writing by the Secretary of State.

• (3) Subject to paragraph (7), the scheme manager must send the estimate for each relevant financial year to the Secretary of State by such date before the start of the relevant financial year as the Secretary of State, may, in writing, specify.

• (4) If the scheme manager revises any of the information sent in the estimate, the scheme manager may send the revised information (“the revised estimate”) to the Secretary of State by such date during the relevant financial year as the Secretary of State may, in writing, specify.

• (5) The scheme manager must send the un-audited information to the Secretary of State by such date after the end of the relevant financial year as the Secretary of State may, in writing, specify.

• (6) The scheme manager must send the audited information to the Secretary of State by such date after the end of the financial year as the Secretary of State may, in writing, specify.

• (7) In relation to the relevant financial year ending on 31st March 2016 the scheme manager must send the estimate to the Secretary of State as soon as practicable after the start of that financial year.

Estimated deficits

126

• (1) Where, having taken into account the estimate, and any other relevant information, it appears to the Secretary of State that the total amount likely to be payable out of the FPF in the relevant financial year will exceed the total amount likely to be payable into that FPF in that year, the Secretary of State must pay an amount to the scheme manager equal to 80% of the likely deficit.

• (2) Where, having taken into account any revised estimate and any other relevant information, it appears to the Secretary of State that—

• (a) the total amount likely to be payable out of the FPF in the relevant financial year will exceed the total amount likely to be paid into the FPF in that year; and

• (b) 80% of the likely deficit is more than—

• (i) the amount paid or payable by the Secretary of State to the scheme manager under paragraph (1) of this regulation in relation to the relevant financial year, or

• (ii) where no such amount was paid or payable by the Secretary of State, zero,

the Secretary of State may pay to the scheme manager such amount as the Secretary of State thinks fit.

• (3) Where the Secretary of State has paid an amount to a scheme manager under paragraphs (1) and (2), the total of these amounts must not exceed 80% of the likely deficit of the FPF for that year.

• (4) Where the Secretary of State pays an amount to a scheme manager under paragraph (2), any amount paid or payable by that scheme manager to the Secretary of State in relation to the relevant financial year under regulation 127(1) (estimated surpluses) must not be paid, or if paid, the Secretary of State must repay it.

• (5) The Secretary of State must make the payment to the scheme manager under paragraph (1) before the end of July of the relevant financial year or as soon as practicable thereafter.

• (6) Where the Secretary of State makes a payment under paragraph (2) or a repayment under paragraph (4), the payment or repayment must be made before the end of the relevant financial year or as soon as reasonably practicable thereafter.

Estimated surpluses

127

• (1) Where, having taken into account the estimate, and any other relevant information, it appears to the Secretary of State that the total amount likely to be paid into the FPF in the relevant financial year will exceed the total amount likely to be payable out of the FPF in that year, the Secretary of State must require the scheme manager to pay to the Secretary of State an amount equal to 80% of the likely surplus.

• (2) Where, having taken into account any revised estimate and any other relevant information available, it appears to the Secretary of State that—

• (a) the total amount likely to be paid into the FPF in the relevant financial year will exceed the total amount likely to be payable out of the FPF in that year; and

• (b) 80% of the likely surplus is more than—

• (i) the amount paid or payable by the scheme manager to the Secretary of State under paragraph (1) in relation to the relevant financial year, or

• (ii) where no such amount was paid or payable by the scheme manager, zero,

the Secretary of State may require the scheme manager to pay to the Secretary of State such amount as the Secretary of State may by notice in writing specify.

• (3) Where the scheme manager has paid an amount to the Secretary of State under paragraphs (1) and (2), the total of these amounts must not exceed 80% of the likely surplus of the FPF for that year.

• (4) Where the Secretary of State requires the scheme manager to pay an amount under paragraph (2), any amount paid or payable by the Secretary of State to the scheme manager in relation to the relevant financial year under regulation 126(1) (estimated deficits) must not be paid, or if paid, the scheme manager must repay it.

• (5) The Secretary of State must give to the scheme manager, on or before 3rd March of the relevant financial year, written notice of the amount of any payment or repayment that the Secretary of State requires the scheme manager to make under paragraph (1), (2) or (4).

• (6) Where the scheme manager is required to make a payment under paragraphs (1) or (2) or to make a repayment under paragraph (4), the payment must be made before the end of the relevant financial year or as soon as reasonably practicable thereafter.

Actual deficits

128

• (1) Where, having taken into account the un-audited information, and any other relevant information available, it appears to the Secretary of State that the total amount likely to be payable out of the FPF in the relevant financial year exceeds the total amount likely to be paid or payable to the FPF in that year—

• (a) where the likely deficit (“the un-audited deficit”) exceeds the total of any amount paid or payable to the scheme manager in relation to that year under regulation 126(1) or (2) (estimated deficits) (“the regulation 126 total”), the Secretary of State must pay to the scheme manager the amount of the un-audited deficit less the regulation 126 total;

• (b) where the un-audited deficit is less than the regulation 126 total, the amount of the regulation 126 total less the un-audited deficit is not payable under regulation 126(1) or (2) and, if already paid, the scheme manager must repay that amount to the Secretary of State;

• (c) where no amount was paid or payable by the Secretary of State to the scheme manager in relation to the relevant financial year under regulation 126(1) or (2), the Secretary of State must pay to the scheme manager the amount of the un-audited deficit; and

• (d) any amount paid or payable to the Secretary of State in relation to that year under regulation 127(1) or (2), is not payable and, if already paid, the Secretary of State must repay it to the scheme manager.

• (2) Where, having taken into account the audited information and any other relevant information available, it appears to the Secretary of State that the total amount paid or payable out of the FPF in the relevant year exceeds the total amount paid or payable into the FPF in that year—

• (a) where the difference between those total amounts (“the audited deficit”) exceeds the total of any amounts paid (but not repaid or repayable) or payable to the scheme manager in relation to that year under paragraph (1)(a) or (c) or regulation 126(1) or (2) (“the un-audited total”), the Secretary of State must pay to the scheme manager the amount of the audited deficit less the un-audited total;

• (b) where the audited deficit is less than the un-audited total, the amount of the un-audited total less the audited deficit is not payable under paragraphs (1)(a) or (c) or regulation 126(1) or (2) (estimated deficits) and, if already paid, the scheme manager must repay it to the Secretary of State;

• (c) where no amount was paid or payable by the Secretary of State to the scheme manager in relation to the relevant financial year under paragraphs (1)(a) or (c) or regulation 126(1) or (2), the Secretary of State must pay to the scheme manager the amount of the audited deficit; and

• (d) any amount paid or payable to the Secretary of State in relation to the relevant financial year under regulation 127(1) or (2) or regulation 129(1)(a) or (c), is not payable and, if already paid, the Secretary of State must repay it to the scheme manager.

• (3) Where the Secretary of State, or the scheme manager, as the case maybe, is required to make a payment or repayment under paragraph (1), it must be made before the end of July in the financial year following the relevant financial year (“the second year”) or as soon as reasonably practicable thereafter.

• (4) Where the Secretary of State or the scheme manager, as the case maybe, is required to make a payment or repayment under paragraph (2), it must be made before the end of July in the financial year following the second year or as soon as reasonably practicable thereafter.

Actual surpluses

129

• (1) Where, having taken into account the un-audited information, and any other relevant information available, it appears to the Secretary of State that the total amount paid into the FPF in the relevant financial year exceeds the total amount paid out of that FPF in that year—

• (a) where the difference between those total amounts (“the un-audited surplus”) exceeds the total of any amounts paid or payable to the Secretary of State by the scheme manager in relation to that year under regulation 127(1) or (2) (“the regulation 127 total”), the Secretary of State must require the scheme manager to pay to the Secretary of State the amount of the un-audited surplus less the regulation 127 total;

• (b) where the un-audited surplus is less than the regulation 127 total, the amount of the regulation 127 total less the un-audited surplus is not payable under regulation 127(1) or (2) and, if already paid, the Secretary of State must repay it to the scheme manager;

• (c) where no amount was paid or payable to the Secretary of State by the scheme manager in relation to the relevant financial year under regulation 127(1) or (2), the Secretary of State must require the scheme manager to pay to the Secretary of State the amount of the un-audited surplus; and

• (d) any amount paid or payable by the Secretary of State to the scheme manager in relation to that year under regulation 126(1) or (2), is not payable and, if already paid, the scheme manager must repay it to the Secretary of State.

• (2) Where, having taken into account the audited information and any other relevant information available, it appears to the Secretary of State that the total amount paid into the FPF in the relevant financial year exceeds the total amount payable out of that FPF in that year—

• (a) where the difference between those total amounts (“the audited surplus”) exceeds the total of any amounts paid (but not repaid or repayable) or payable to the Secretary of State by the scheme manager in relation to that year under paragraph (1)(a) or (c) or regulation 127(1) or (2) (estimated surpluses) (“the un-audited regulation 127 total”), the Secretary of State must require the scheme manager to pay to the Secretary of State out of the FPF the amount of the audited surplus less the un-audited regulation 127 total;

• (b) where the audited surplus is less than the un-audited regulation 127 total, the amount of the un-audited regulation 127 total less the audited surplus is not payable under paragraphs (1)(a) or (c) or regulation 127(1) or (2) and, if already paid, the Secretary of State must repay it to the scheme manager;

• (c) where no amount was paid or payable to the Secretary of State by the scheme manager in relation to the relevant financial year under paragraphs (1)(a) or (c) or regulation 127(1) or (2), the Secretary of State must require the scheme manager to pay to the Secretary of State the amount of the audited surplus; and

• (d) any amount paid or payable by the Secretary of State to the scheme manager in relation to that year under regulation 126(1) or (2) (estimated deficits) or regulation 128(1)(a) or (c) (actual deficits) is not payable and, if already paid, the scheme manager must repay it to the Secretary of State.

• (3) The Secretary of State must give to the scheme manager, on or before 3rd July in the financial year after the relevant financial year (“the second year”), written notice of the amount of the payment that the Secretary of State requires the scheme manager to make under paragraph (1)(a) or (c).

• (4) Where the Secretary of State or the scheme manager, as the case maybe, is required to make a payment or repayment under paragraph (1), it must be made before the end of July in the second year or as soon as reasonably practicable thereafter.

• (5) The Secretary of State must give to the scheme manager, on or before 3rd July in the financial year that is the second financial year after the relevant financial year (“the third year”), written notice of the amount of any payment that the Secretary of State requires the scheme manager to make under paragraph (2)(a) or (c).

• (6) Where the Secretary of State or the scheme manager, as the case maybe, is required to make a payment or repayment under paragraph (2) of this regulation, it must be made before the end of July in the third year or as soon as reasonably practicable thereafter.

Duty to provide information

130

• (1) The scheme manager must provide the Secretary of State with such information relevant to the exercise of the Secretary of State’s functions under this Part as the Secretary of State may, by written notice, require.

• (2) The scheme manager must provide the information required within the period of time specified by the Secretary of State in that notice or within such additional period as may be allowed by the Secretary of State.

PART 10 — Transfers

CHAPTER 1 — Preliminary

Application of Part

131

This Part—

• (a) supplements the rights conferred by or under Chapter 4 of Part 4 of PSA 1993 (transfer values) and is without prejudice to that Chapter; and

• (b) supplements the rights conferred by or under Chapter 5 of that Part (early leavers: cash transfer sums and contribution refunds)[^f00050] and is without prejudice to that Chapter.

Interpretation in relation to Part

132

In this Part—

• “cash equivalent” means an amount calculated in accordance with regulations made under section 97 of PSA 1993;

• “club transfer value” means, in relation to an amount of accrued earned pension under this scheme or under another club scheme, an amount calculated by the scheme manager—in accordance with the club transfer arrangements, andby reference to the guidance and tables provided by the Government Actuary for this purpose that are in use on the date used for the calculation;

• “guarantee date” has the meaning given in regulation 135 (statement of entitlement);

• “guaranteed cash equivalent” means, in relation to calculating the transfer value of accrued rights to benefits under this scheme, the cash equivalent of those benefits as at the guarantee date, as specified in a statement of entitlement;

• “statement of entitlement”, in relation to an active or deferred member’s accrued rights to benefits under this scheme, means a statement by the scheme manager of the cash equivalent or club transfer value of those benefits as at the guarantee date;

• “transfer value” means, for accrued rights to benefits other than accrued earned pension which is the subject of a club transfer—for accrued rights to benefits under this scheme, an amount equal to—the guaranteed cash equivalent of those benefits, orthe guaranteed cash equivalent together with any increase payable under regulation 137 (calculating amount of a transfer value or club transfer value), andfor accrued rights to benefits under another pension scheme, an amount—determined by the scheme actuary of that scheme, andspecified in a statement of accrued rights provided by the scheme manager of that scheme.

CHAPTER 2 — Transfers out

Transfer payments made to other schemes or pension arrangements

133

• (1) A transfer payment may only be made in respect of the accrued rights to benefits of an active or deferred member of this scheme.

• (2) A transfer payment may only be made to—

• (a) a registered pension scheme that is not a connected scheme; or

• (b) a pension arrangement that is a qualifying recognised overseas pension scheme for the purposes of Part 4 of FA 2004 (see section 169(2) of that Act).

• (3) A transfer payment may not be made in respect of rights that are attributable (directly or indirectly) to a pension credit.

• (4) A member may only require the scheme manager to use a transfer payment in a way specified in section 95(2) of PSA 1993.

• (5) A member may only require the scheme manager to make a club transfer value payment during the period of 12 months beginning with the day on which the member becomes eligible to be an active member of the scheme to which the payment is to be made.

• (6) The whole of the transfer payment must be made in accordance with the provisions of this regulation.

• (7) If section 96(2) of PSA 1993 (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) applies, benefits attributable to the following may be excluded from the transfer payment—

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