The Firemen’s Pension Scheme (Pension Sharing) Order 2001

Explanatory Note

(This note is not part of the Regulations)

This Order amends the Firemen’s Pension Scheme, as set out in Schedule 2 to the Firemen’s Pension Scheme Order 1992, as it applies in England and Wales. The amendments make provision for the implementation of pension sharing on divorce and nullity in accordance with the Welfare and Pensions Reform Act 1999 and subordinate legislation made under that Act. In particular, they implement the overriding reduction of benefits made by section 31 of that Act. The amendments are set out in the Schedule to this Order.

Paragraph 1 of the Schedule amends rule A3 of the Scheme to enable the Scheme to provide benefits for pension credit members (the ex-spouses in whose favour pension sharing orders have been made).

Paragraph 2 amends rule B8 so that any pension a person is entitled to as a pension credit member is taken into account in determining whether a pension the person is entitled to under Part B is commuted.

Paragraph 3 inserts a new rule, B12, providing for the awards of pension debit members (firemen subject to pension sharing orders) to be calculated by reference to the rights they have after the reduction in consequence of the pension sharing order has been made. Paragraph 4 makes similar provision about awards to the surviving spouses of such members and other awards on death. But paragraph 5 provides for that reduction to be disregarded for the purposes of calculating children’s benefits.

Paragraph 6 amends rule E4 so that the actuarial value of the pension credit member’s pension is taken into account in determining whether there is a balance of contributions to pay to the member’s estate.

Paragraph 7 amends rule E9 so that, if a deceased member is a pension debit member, the flat rate awards for surviving spouses are reduced in the same proportion as the member’s pension.

Paragraphs 8 to 10 prevent transfer values being paid or accepted in respect of pension credit rights.

Paragraphs 11 and 12 make provision preventing a pension debit member from purchasing rights to replace those debited by a pension sharing order, except in the circumstances allowed under regulations made under paragraph 18(10) or (11) of Schedule 10 to the Income and Corporation Taxes Act 1988.

Paragraph 13 inserts a new Part, Part IA, in the Scheme making special provision for pension credit members. The new rules provide for the pension to which such members are entitled at their normal benefit age or, if later, the date when the pension sharing order takes effect, for the commutation of the pension and for a death grant to be payable if the member dies before the pension is payable. Rule IA4 disapplies most rules of the Scheme for these members, except the rules mentioned in the new rule IA4(2).

Paragraph 14 makes provision about which fire authorities exercise functions under the Scheme in relation to pension credit members' awards.

Paragraph 15 excludes pension credit members' pensions under Part IA from the rules in rule L4 preventing the payment of duplicate pensions.

Paragraph 16 adds various expressions relating to pension sharing to the glossary in Part I of Schedule 1.

Paragraphs 17 to 19 contain various consequential amendments of the provisions in the Schedules to the Scheme concerning calculations of awards and transfer values.