The Firefighters’ Pension Scheme (Wales) (Transitional and Consequential Provisions) Regulations 2015

Made: 31 March 2015

Laid before the National Assembly for Wales: 31 March 2015

Coming into force: 1 April 2015

In accordance with section 21 of that Act, the Welsh Ministers have consulted the representatives of such persons as appear to the Welsh Ministers likely to be affected by these Regulations.

Title and commencement

1

• (1) The title of these Regulations is the Firefighters’ Pension Scheme (Wales) (Transitional and Consequential Provisions) Regulations 2015.

• (2) These Regulations come into force on 1 April 2015.

Amendment of the Firefighters’ Pension Scheme (Wales) Regulations 2015

2

The Firefighters’ Pension Scheme (Wales) Regulations 2015[^f00003] which establish the Firefighters’ Pension Scheme (Wales) 2015 are amended in accordance with Schedule 1 to these Regulations.

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

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Schedule 1 to the Firefighters’ Pension Scheme (Wales) Order 2007[^f00004] (in which the New Firefighters’ Pension Scheme (Wales) is set out) is amended in accordance with Schedule 2 to these Regulations.

Amendment of the Firemen’s Pension Scheme Order 1992

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Schedule 2 to the Firemen’s Pension Scheme Order 1992[^f00005] (in which is set out the Firefighters’ Pension (Wales) Scheme), as it has effect in Wales, is amended in accordance with Schedule 3 to these Regulations.

SCHEDULE 1 — Amendments to the Firefighters’ Pension Scheme (Wales) Regulations 2015

1

In Part 1 (preliminary), in regulation 3 (interpretation)—

• (a) in the appropriate places insert—

• “adjusted lower tier ill-health pension” (“pensiwn addasedig afiechyd haen isaf”) has the meaning given in regulation 75(4) (annual rate of ill-health awards);

• “connected member of the NFPS” (“aelod cysylltiedig o CPNDT”) has the meaning given in rule 1C of Part 2 of the NFPS;

• “connected special member of the NFPS” (“aelod arbennig cysylltiedig o CPNDT”) has the meaning given in rule 1D of Part 2 of the NFPS;

• “continued pension” (“pensiwn parhaus”) means— in relation to a member of the NFPS, the entitlement to a pension under rule 1B of Part 3 of the NFPS, in relation to a member of the 1992 Scheme, the entitlement to a pension under rule B2A of the 1992 Scheme;

• “deferred member of the 1992 Scheme” (“aelod gohiriedig o Gynllun 1992”) means a person who is entitled to a deferred pension under rule B5 of the 1992 Scheme;

• “deferred member of the NFPS” (“aelod gohiriedig o CPNDT”) has the meaning given in rule 2(1) of Part 1 of the NFPS;

• “equivalent amount to the 1992 Scheme lower tier ill-health pension” (“swm cyfwerth â’r pensiwn afiechyd haen isaf Cynllun 1992”) has the meaning given in regulation 74(5) (entitlement to lower tier ill-health pension and higher tier ill-health pension);

• “equivalent amount to the NFPS lower tier ill-health pension” (“swm cyfwerth â’r pensiwn afiechyd haen isaf CPNDT”) has the meaning given in regulation 74(5)(a) (entitlement to lower tier ill-health pension and to higher tier ill-health pension);

• “initial period” (“cyfnod dechreuol”) has the meaning given in regulation 86 (meaning of “initial period”);

• “pensionable service in the 2015 Scheme” (“gwasanaeth pensiynadwy yng Nghynllun 2015”) means any continuous pensionable service in relation to the active member’s account in this scheme to which pensionable service in the 1992 Scheme was added for the purposes of regulation 66 (qualifying service) of these Regulations for the period whilst paragraph (7) of rule A3 of the 1992 Scheme continues to apply to that person;

• (b) in the definition of “retirement pension”, after paragraph (b) insert—

(c) an ill-health award and the payment of any equivalent amount to the 1992 Scheme lower tier ill-health pension (if any) and the payment of any equivalent amount to the NFPS lower tier ill-health pension (if any);

2

In Part 2 (governance), at the end of paragraph (2) of regulation 4 (scheme manager) insert “in relation to each of the member’s pension accounts”.

3

In Part 3 (scheme membership) in Chapter 1 (eligibility for active membership), in regulation 15 (scheme employment), for paragraph (3) substitute—

(3) A person who is a member of the 1992 Scheme or the NFPS satisfies the requirement in this paragraph.

4

In Part 4 (pension accounts), in Chapter 8 (retirement account), in regulation 60 (account to specify amount of retirement pension (active members))—

• (a) after paragraph (3) insert—

(3A) Where the active member is entitled to an equivalent amount to the 1992 Scheme lower tier ill-health pension or to an equivalent amount to the NFPS lower tier ill-health pension, the retirement account must specify that amount.

• (b) after paragraph (4) insert—

(4A) For an equivalent amount to the 1992 Scheme lower tier ill-health pension or an equivalent amount to the NFPS lower tier ill-health pension, the retirement account must specify any commutation amount.

5

In Part 5 (retirement benefits), in Chapter 2—

• (a) in regulation 68 (annual rate of retirement pension (active members))—

• (i) in paragraph (2), for “sub-paragraphs (a), (b) and (c)” substitute “sub-paragraphs (a), (b), (ba) and (c)”;

• (ii) after paragraph (2)(b) insert—

(ba) the sum of — (i) the equivalent amount to the NFPS lower tier ill-health pension (if any) or the equivalent amount to the 1992 Scheme lower tier ill-health pension (if any) specified in the member’s retirement account, (ii) subtracting the commutation amount (if any) specified in that account in relation to that amount; and

• (b) in regulation 71 (employer initiated retirement), after paragraph (2) insert—

(3) Where an employer is considering making the determination in paragraph (2) in respect of an active member who is a connected member of the NFPS, or a connected special member of the NFPS, in relation to that active member’s pension account, the employer must also consider making a determination under rule 6 (pension on authority initiated early retirement) of Part 3 of the NFPS.

• (c) in regulation 74 (entitlement to lower tier ill-health pension and to higher tier ill-health pension), after paragraph (3) insert—

(4) Where an active member (A) is entitled to a lower tier ill-health pension and paragraph 22 (transition member who has not reached normal pension age under the NFPS) or paragraph 24 (transition member who has not reached normal pension age under the 1992 Scheme) of Schedule 2 to these Regulations applies in relation to A— (a) if paragraph 22 applies in relation to A, A is also entitled to an amount equivalent to the annual amount of a lower tier ill-health pension that would, if the member were entitled to payment of a lower tier ill-health pension under rule 2(2) of the NFPS, be payable to the member under the NFPS; (b) if paragraph 24 applies in relation to A, A is also entitled to an amount equivalent to the annual amount of a lower tier ill-health pension that would, if the member were entitled to payment of a lower tier ill-health pension under rule B3 (ill-health awards) of the 1992 Scheme, be payable to the member under the 1992 Scheme. (5) In these Regulations— (a) the amount equivalent to the annual amount of a lower tier ill-health pension in sub-paragraph (a) of paragraph (4) is referred to as the “equivalent amount to the NFPS lower tier ill-health pension” (“swm cyfwerth â’r pensiwn afiechyd haen isaf CPNDT”); (b) the amount equivalent to the annual amount of a lower tier ill-health pension in sub-paragraph (b) of paragraph (4) is referred to as the “equivalent amount to the 1992 Scheme lower tier ill-health pension” (“swm cyfwerth â’r pensiwn afiechyd haen isaf Cynllun 1992”).

• (d) in regulation 75 (annual rate of ill-health awards)—

• (i) after paragraph (3) insert—

(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.

• (ii) in paragraph (4), at the appropriate place insert—

• “the adjusted equivalent amount” (“y swm cyfwerth addasedig”) 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, and without the deduction of any commuted portion; and 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;

• (e) in regulation 78 (consequences of review), after paragraph (6) insert—

(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.

• (f) after regulation 80 (option to commute part of pension) insert—

(80A) (1) A member who becomes entitled to the immediate payment of 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 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 equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the 1992 Scheme lower tier ill-health pension is made. (3) Where the person is entitled to the immediate payment of an equivalent amount to the NFPS lower tier ill-health pension and exercises the option to commute under this regulation, the lump sum is calculated— (a) in the case of a person who is a connected member of the NFPS, in accordance with paragraphs (2) and (4) of rule 9 (commutation: general) of Part 3 of the NFPS, and (b) in the case of a person who is a connected special member of the NFPS, in accordance with paragraphs (2A), (4) and (4A) of rule 9 of Part 3 of that scheme.

6

In Part 6 (death benefits)—

• (a) in Chapter 1 (interpretation), in regulation 86 (meaning of “initial period”), for “For the purposes of this Part” substitute “For the purposes of these Regulations”;

• (b) in Chapter 2 (pensions for surviving partners)—

• (i) in paragraph (3) of regulation 87 (surviving partner’s pension payable on death of active member) for “Subject to regulation 91 (reduction in pensions in cases of wide age disparity)” substitute “Subject to paragraph (4) and regulation 91 (reduction of pensions in cases of wide age disparity)”;

• (ii) after paragraph (3) of regulation 87 insert—

(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).

• (iii) at the beginning of paragraph (2) of regulation 95 (eligible child’s pension on death of active member) insert “Subject to paragraph (3)”, and after that paragraph insert—

(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).

• (c) in Chapter 4 (lump sum death benefits), after paragraph (4) in regulation 102 (meaning of “final pay”) insert—

(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.

• (d) after paragraph (3) of regulation 105 (lump sum payable on death of active member) insert—

(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.

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Schedule 2 (transitional provisions) is amended as follows—

• (a) in Part 1, in paragraph 3(2) for “Subject to sub-paragraph (3)” substitute “Subject to sub-paragraphs (3) and (4)” and after sub-paragraph (3) insert—

(4) In the case of a tapered protection member of the NFPS who is a special member of the NFPS, the tapered protection closing date is the date found by applying the relevant date in column 3 of the 1992 Scheme table in Part 4 of this Schedule to the birthday referred to in column 1 and column 2.

• (b) in Part 2, in paragraph 9, after sub-paragraph (2) insert—

(2A) Where P was a full protection member of the 1992 Scheme and, after retiring from pensionable service in this scheme, became entitled to a continuous service pension under rule B1A, to an ordinary pension under rule B1, to a short service award under rule B2 or to a continued pension under rule B2A of that scheme, P ceases to be eligible to be a full protection member of the NFPS.

• (c) in Part 3, in paragraph 15, after sub-paragraph (1) insert—

(1A) Where P was a full protection member of the 1992 Scheme and, after retiring from pensionable service in this scheme, became entitled to a continuous service pension under rule B1A, to an ordinary pension under rule B1, to a short service award under rule B2 or to a continued pension under rule B2A of that scheme, P ceases to be eligible to be a tapered protection member of the NFPS.

• (d) after Part 3 insert—