The Firemen’s Pension Scheme Order (Northern Ireland) 2006

Article 62(5)

PART II SERVICE RECKONABLE ON RECEIPT OF TRANSFER VALUE

1.—(1) If the previous scheme is a club scheme, the period reckonable as pensionable service is one equal to the period that would enable the Authority to pay a transfer value, calculated on the cash equivalent basis, of the same amount as the sum received.

(2) A transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under section 93(1) of the Pension Schemes (Northern Ireland) Act 1993(1) for the calculation of cash equivalents.

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

2.—(1) Subject to paragraph 3, if the previous scheme is not a club scheme the period reckonable as pensionable service is that specified in sub-paragraph (2).

(2) The period is—

where—

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

• B is any amount in respect of graduated National Insurance modification notified by the scheme managers of the previous scheme,

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

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

• E is 1/90th of the rate of his annual pensionable pay at the material date multiplied by the surviving spouse’s or civil partner’s pension factor.

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

(a) the person’s age at the material date; and

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

(4) The amount in respect of the person’s guaranteed minimum is

F + G,

where—

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

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

(5) The material date—

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

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

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

3.  If—

(a) the previous scheme is not a club scheme; and

(b) the person became a regular fireman before lst January 1986,

the period reckonable as pensionable service is one calculated as if paragraphs 1 to 4 of Part II of Schedule 7 to the 1973 Scheme and Part III of that Schedule, as in operation on 31st March 2006, had continued in operation.

4.  In this Part—

(a) annual pensionable pay, in the case of a part-time member of the fire brigade, is the pay the person would have received had he been a whole-time member; and

(b) periods of reckonable pensionable service shall be treated as periods of whole-time service.

(1)

1993 c. 49