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

13.  After Part I the following Part shall be inserted—

“PART IA PENSION CREDIT MEMBERS

Pension credit member’s entitlement to pension

IA1.— (1) Subject to rule IA2, a pension credit member is entitled to a pension for life which becomes payable—

(a) when he attains normal benefit age, or

(b) if it is later, when the pension sharing order under which he is entitled to the pension credit takes effect.

(2) The pension must be of such an amount that its actuarial value is equal to the member’s pension credit, as calculated from tables prepared by the Government Actuary and in accordance with regulations made under paragraph 5(b) of Schedule 5 to the 1999 Act.

Commutation of the pension credit benefits

IA2.— (1) In the circumstances described in regulation 3(2)(b) of the Pension Sharing (Pension Credit Benefit) Regulations 2000(1) (commutation of pension credit benefit: small pensions), the relevant fire authority may commute for a lump sum the whole of the pension to which a pension credit member is entitled under rule IA1.

(2) A person entitled or prospectively entitled to such a pension may commute for a lump sum a portion of the pension (“the commuted portion”).

(3) But paragraph (2) does not apply if the pension debit member from whose rights the pension credit member’s pension credit is derived has received a lump sum under rule B7 before the date on which the pension sharing order takes effect.

(4) The lump sum under paragraph (2) is the actuarial equivalent of the commuted portion at the normal benefit age, calculated from tables prepared by the Government Actuary.

(5) But the lump sum under paragraph (2) may not exceed the annual rate of the pension for the first year it is payable (disregarding any reduction under this rule or any other rule of the Scheme), multiplied by 2.25.

(6) A person who wishes to commute a portion of a pension under paragraph (2) must not later than 6 months after—

(a) the date on which the person attains normal benefit age, or

(b) the date on which the pension sharing order takes effect,

whichever is the later, give the relevant fire authority written notice of commutation, specifying the portion to be commuted.

(7) Notice of commutation takes effect on the later of—

(a) the date on which the pension under rule IA1 becomes payable, and

(b) the date on which it is received by the fire authority.

(8) When a person’s notice of commutation takes effect, the relevant fire authority shall—

(a) reduce the pension, as from the effective date, by the commuted portion, and

(b) pay him the lump sum, reduced where the effective date is the date of receipt of the notice, by the difference between the aggregate payments made in respect of the pension and the aggregate payments that would have been made in respect of it if it had been reduced from—

(i) the date on which the person attains normal benefit age, or

(ii) the date on which the pension sharing order takes effect,

whichever is the later.

Death grants where pension credit member dies before pension credit benefits payable

IA3.    If a pension credit member dies before any benefits deriving from the member’s pension credit have become payable to him under this Scheme, a lump sum death grant is to be paid to the personal representatives of an amount equal to the annual rate of the pension to which the member would have been entitled under rule IA1 if he had attained normal benefit age on the date of his death (as calculated from tables prepared by the Government Actuary) multiplied by 2.25.

Application of general rules

IA4.— (1) The provisions of this Scheme specified in paragraph (2) apply to pension credit members and awards payable to or in respect of them, but apart from where provision is made by this Part or a contrary intention is otherwise indicated—

(a) this Scheme shall not apply to pension credit members and benefits payable to or in respect of them, except if and to the extent that they are also members of another description or dependants of a member, and

(b) the benefits payable to or in respect of pension credit members are not aggregated for any purpose with benefits payable to or in respect of those persons in any other capacity or as pension credit members deriving their pension credit benefits from any other pension debit member.

(2) Those provisions are—

• rule H1 (determination by fire authority),

• rule H3 (appeal to Crown Court or Sheriff),

• rule K5 (withdrawal of pension on conviction of certain offences),

• rule L2 (expenses and receipts of fire authorities),

• rule L3 (payment of awards), and

• rule L5(1) to (5) and (10) (payments of awards-supplementary).

14.   In rule L1 (authorities responsible for payment of awards) after paragraph (2) there shall be inserted—

“(3) An award payable to or in respect of a pension credit member under Part IA, and any sum paid in commutation of such an award, is payable by the relevant fire authority.

(4) In this Scheme “the relevant fire authority”, in relation to a pension credit member, means—

(a) the fire authority who employ the pension debit member from whose rights the pension credit member’s pension credit is derived at the time when the pension sharing order takes effect, or

(b) if he is not then employed by a fire authority, the fire authority by whom he was last employed.”.

15.   In rule L4 (prevention of duplication) after paragraph (2)(d) there shall be inserted—

“(e) under rule IA1 (pension credit member’s entitlement to pension),”.

16.   In Part I of Schedule 1 (interpretation: glossary of expressions) there shall be inserted in the appropriate places in alphabetical order the following definitions—

“The 1993 Act”	The Pension Schemes Act 1993.(2)
“The 1999 Act”	The Welfare Reform and Pensions Act 1999.(3)
“Normal benefit age”	The age of 60.
“Pension credit”	A credit under section 29(1)(b) of the 1999 Act, including a credit under corresponding Northern Ireland legislation.
“Pension credit benefit”	Construe in accordance with section 101B of the 1993 Act.(4)
“Pension credit member”	Construe in accordance with section 124(1) of the Pensions Act 1995.(5)
“Pension credit rights”	Construe in accordance with section 101B of the 1993 Act.
“Pension debit”	A debit under section 29(1)(a) of the 1999 Act.
“Pension debit member”	A person whose benefits or future benefits under this Scheme have been reduced under section 31 of the 1999 Act.
“Pension sharing order”	An order or provision mentioned in section 28(1) of the 1999 Act.
“Relevant fire authority”	Construe in accordance with rule L1(4).”.

(1)

S.I. 2000/1054, as amended by S.I. 2000/2691.

(2)

1993 c. 48.

(3)

1999 c. 30.

(4)

Section 101B is inserted by section 37 of the Welfare Reform and Pensions Act 1999.

(5)

1995 c. 26. The definition of “pension credit member” is inserted by paragraph 61(3) of Schedule 12 to the Welfare Reform and Pensions Act 1999.