2016 No. 1136 (W. 274)

Fire And Rescue Services, Wales
Pensions, Wales

The Firefighters’ Pension (Wales) Scheme (Amendment and Transitional Provisions) Order 2016

Made

Laid before the National Assembly for Wales

Coming into force

The Welsh Ministers, in exercise of the powers conferred upon the Secretary of State by section 26(1) to (5) of the Fire Services Act 19471and section 12 of the Superannuation Act 19722as applied by section 16(3)3 of that Act, and now vested in them4, make the following Order.

Title and commencement1

1

The title of this Order is the Firefighters’ Pension (Wales) Scheme (Amendment and Transitional Provisions) Order 2016.

2

This Order comes into force on 31 December 2016 but article 2(2) has effect from 1 December 20065.

Amendment of the Firemen’s Pension Scheme Order 19922

1

Schedule 2 to the Firemen’s Pension Scheme Order 19926 (in which is set out the Firefighters’ Pension (Wales) Scheme) is amended as follows.

2

In rule G2 (pension contributions)7—

a

in paragraph (1) for “A regular firefighter shall” substitute “Subject to paragraph (1B), a regular firefighter shall”; and

b

before paragraph (2) insert—

1B

Paragraph (1) does not apply to a firefighter below the age of 50 who has reckoned 30 years or more pensionable service.

3

In rule LA1(3) (establishment, maintenance and operation of Firefighters’ Pension Fund, etc.)8—

a

at the end of sub-paragraph (d) for “.” substitute “; and”; and

b

after sub-paragraph (d) insert—

e

sums payable under article 3 of the Firefighters’ Pension (Wales) Scheme (Amendment and Transitional Provisions) Order 2016.

Transitional provision3

1

A fire and rescue authority must pay the required amount as described in paragraph (3) to a firefighter who falls within paragraph (2).

2

A firefighter falls within this paragraph if in the period beginning on 1 December 2006 and ending on 31 December 2016 the firefighter paid pensions contributions pursuant to rule G2(1) of the Firefighters’ Pension (Wales) Scheme which as a consequence of article 2(2) of this Order did not fall to be payable.

3

The required amount is a lump sum equal to (A+B)×Cmath, where—

  • A is the total value of each contribution paid net of any tax that would have been payable by the firefighter had the contribution not been paid;

  • B is the interest on A calculated in accordance with paragraph (4); and

  • C is 100/60.

4

Interest must be—

a

calculated separately in relation to each contribution paid; and

b

applied on a compound basis at the past interest rate on a day to day basis for the period specified in paragraph (5).

5

The period specified for the purposes of paragraph (4)(b) begins on the first day of the month in which each contribution was paid and ends on the last day of the month before the month in which the payment of the required amount is made.

6

Where a payment is required to be made under paragraph (1) in respect of a firefighter who died before 31 December 2016 or who dies on or after that date but before the payment is made, the fire and rescue authority must pay the sum due to the firefighter’s personal representatives.

7

For the purposes of this article—

  • “Bank of England base rate” (“cyfradd sylfaenol Banc Lloegr”) means—

    1. a

      the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets; or

    2. b

      where an order under section 19 (reserve powers) of the Bank of England Act 19989 is in force, any equivalent rate determined by the Treasury under that section;

  • “fire and rescue authority” (“awdurdod tân ac achub”) has the same meaning as in the Fire and Rescue Services Act 200410; and

  • “past interest rate” (“cyfradd log flaenorol”) is a rate equivalent to the Bank of England base rate applicable on each day of the period specified in paragraph (5).

Carl SargeantCabinet Secretary for Communities and Children, one of the Welsh Ministers
EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Firefighters’ Pension (Wales) Scheme (set out in Schedule 2 to the Firemen’s Pension Scheme Order 1992 as it has effect in Wales) (“the Scheme”).

Article 2(2) removes the obligation on firefighters to pay contributions for the period after they have reckoned the maximum permissible pension entitlement until they reach age 50, the minimum age to draw benefits. The change takes effect from 1 December 2006. Section 12 of the Superannuation Act 1972 permits provisions to have retrospective effect.

Articles 2(3) and 3 make provision for the repayment of any such contributions paid between 1 December 2006 and the date this Order comes into force. The formula set out in article 3 takes account of both interest and an uplift reflecting the tax charge that will be payable under the Finance Act 2004. Under article 2(3), payments will be made from the relevant Firefighters’ Pension Fund which each fire and rescue authority is required to establish and maintain for the purposes of the Scheme.

The Welsh Ministers’ Regulatory Impact Assessment Code for Subordinate Legislation has been considered in relation to this Order. As a result, it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with this Order.