The Firefighters’ Compensation Scheme and Pension Scheme (Amendment) (Scotland) Order 2015

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends Schedule 1 to the Firefighters’ Compensation Scheme (Scotland) Order 2006 (S.S.I. 2006/338) which provides for a compensation scheme for firefighters and dependants of firefighters in Scotland (“the Compensation Scheme”). The amendments to the Compensation Scheme set out in Part 2 of this Order are consequential on the coming into force of the Firefighter’s Pension Scheme 2015 (“the 2015 Scheme”) set out in the Firefighters’ Pension Scheme (Scotland) Regulations 2015 (S.S.I. 2015/19) for firefighters employed by the Scottish Fire and Rescue Authority (“the authority”).

This Order also amends Schedule 1 to the Firefighters’ Pension Scheme (Scotland) Order 2007 (S.S.I. 2007/199) which sets out the New Firefighters’ Pension Scheme (Scotland) (“the 2006 Scheme”).

The main effects of the amendments to the Compensation Scheme made by Part 2 of this Order are the insertion of references to relevant provisions of the 2015 Scheme to ensure that the provisions of the Compensation Scheme apply to members of the 2015 Scheme, the 2006 Scheme and the Firefighters’ Pension Scheme (set out in Schedule 2 to S.I. 1992/129).

The main effects of the amendments to the 2006 Scheme made by Part 3 of this Order are to:

(a) update provisions and terminology as a consequence of the coming into force of the 2015 Pension Scheme;

(b) introduce provisions dealing with same sex marriage;

(c) make minor amendments to clarify references in the definitions of special deferred member, special eligibility criteria, special firefighter member, and special pensioner member;

(d) clarify provisions relating to the payment of interest;

(e) extend the time available to the authority to complete the options exercise for the ‘modified scheme’ up to a maximum of 6 months. The 2006 Scheme was amended in April 2014 to introduce provisions enabling individuals employed as retained firefighters during the period 1st July 2000 and 5th April 2006, to purchase pension benefits in respect of this employment (“the Modified Scheme”). The authority had until 31st March 2015 to undertake and conclude an options exercise to identify all those former and current employees with an entitlement to join the Modified Scheme. The provisions extend this time period by 6 months;

(f) amend the commutation factors table set out in Annex ZA to reflect the commutation factors as on 31st March 2014;

(g) uprate the contribution bands by 1% per annum each year until 1st April 2018. Annex A1 of the 2006 Scheme sets out the contribution rates payable by members which are determined by reference to the applicable pensionable pay band. Annex AB1 sets out the contribution rates for special members. This Order amends both tables to provide an annual one per cent uplift in the pay bands until 2018.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private sector or voluntary sectors is foreseen and the impact on the public sector is minimal.