The New Firefighters’ Pension Scheme (Amendment) Order (Northern Ireland) 2015

Amendment of Part 11 (pensionable pay, pension contributions and purchase of additional service)

9.—(1) Part 11 is amended as follows.

(2) In article 62 (final pensionable pay) after paragraph (8) add—

“(9) In the case of a special member, paragraph (2)(b) applies with the substitution of “special pensionable service” for “pensionable service”.

(10) In the case of a person who joined this Scheme as a special deferred member or a special pensioner member, his final pensionable pay shall be the amount determined by the Board and set out in the notice given by the Board under article 65A(13) of this Part.”.

(3) In article 63 (pension contributions)—

(a) in paragraph (1), for “A firefighter member” substitute “Subject to paragraph (1A), a firefighter member”;

(b) after paragraph (1) insert—

“(1A) A firefighter member who is a special member shall pay pension contributions to the Board at the rate of 11% of his pensionable pay in respect of a period ending on 31st March 2012 and in respect of any period commencing on or after 1st April 2012, at the percentage rate of his pensionable pay for the period in question specified in the Table in Schedule AB1.”;

(c) in paragraph (2), after “paragraph (1)” insert “or (1A)”.

(4) In article 64 (optional pension contributions during maternity and adoption leave)—

(a) in paragraph (1)(a) for “article 62” substitute “article 56, or as special pensionable service under article 56A”;

(b) in paragraph (5) after “pensionable service” insert “or as special pensionable service”.

(5) In article 65 (purchase of additional service) after paragraph (6) add—

“(7) In the case of a special firefighter member—

(a) this article applies—

(i) in paragraph (2)(c) with the substitution of “30 years special pensionable service” for “40 years’ pensionable service”;

(ii) in paragraph (3) with the substitution of “special pensionable service” for “pensionable service” and“30 years” for “40 years”;

(b) in relation to paragraph (4)(a) the Scheme Actuary shall provide different tables for special members and in paragraph (4)(b) the determination by the Scheme Actuary shall take account of the purchase being made by a special member.”.

(6) After article 65 insert—

“Purchase of service during the limited period

65A.— (1) A person member who satisfies the conditions specified in paragraph (2) may, in accordance with the following provisions of this Chapter, elect to pay pension contributions in respect of his service during the limited period.

(2) The conditions are that—

(a) the person is entitled to join this Scheme as a special member;

(b) the service is—

(i) as a retained firefighter; or

(ii) as a regular firefighter where he took up employment after 5th April 2006 as a regular firefighter immediately after the termination of his employment as a retained firefighter; or

(iii) with the agreement of the Board, as a regular firefighter, but not as a retained firefighter, where he had been employed by the Board as a retained firefighter and then required by the Board after 5th April 2006 to remain in employment as a retained firefighter whilst taking up employment as a regular firefighter.

(3) Where paragraph (1) applies—

(a) subject to article 66A(11) of this Part, mandatory special period pension contributions shall be paid in respect of the person’s service during the mandatory special period; and

(b) mandatory special period pension contributions shall be paid for the period required by article 66A(12) of this Part, where a person has elected to transfer his accrued rights in the Firefighters’ Pension Scheme to his special membership,

but the period of service referred to in sub-paragraph (a) or (b) does not, subject to articles 81A or 84C of Part 12, include any period of service in respect of which he paid pension contributions under the Firefighters’ Pension Scheme or under this Scheme as a standard member.

(4) Within two months of 20 June 2014, the Board shall use reasonable endeavours to notify all those existing employees and former employees who may be entitled to join this Scheme as a special member that they may be so entitled.

(5) Within two months of receiving the notification in paragraph (4), or if no notification has been received, within three months of 20 June 2014, a person may apply to the Board falling within paragraph (2) for a statement of the service in respect of which he may become entitled to pay contributions under this article and the mandatory special period pension contributions which he would be required to pay in respect of it.

(6) An application under paragraph (5) shall be in writing and shall state—

(a) the date on which the applicant took up employment as a retained firefighter;

(b) where he has left that employment, the date on which he left;

(c) where he took up employment as a regular firefighter, the date on which he took up that employment;

(d) if he joined this Scheme as a standard member or joined the Firefighters’ Pension Scheme, the date on which he joined the Scheme and, if it was the case, the date on which he made an election not to pay pension contributions under article 8 of this Scheme or under article 59 of the Firefighters’ Pension Scheme (as the case may be).

(7) The Board shall determine the period of the person’s service during the limited period from their records.

(8) Where the Board is not able to determine the period of the person’s service during the limited period from its records, the person may provide the Board with documents to assist it to determine the person’s period of service during the limited period and the Board shall determine the period of the person’s service from those documents.

(9) Where the Board is not able to determine the period of the person’s service during the limited period and the Board does not hold records of that person’s pay for that period, and the person cannot provide the Board with the necessary documents, the Board may estimate the person’s pensionable pay for that period from the records which it holds and may in particular estimate this on the basis of the average of recent pay data for retained firefighters at the same station or stations as that at which the person was based for the relevant period.

(10) Where the Board has estimated the pay of a person in accordance with paragraph (9), the Board shall determine that person’s period of pensionable service during the limited period.

(11) Where the service is as a retained firefighter, the Board shall determine the person’s retained pensionable service during the limited period by calculating the same proportion of whole-time service as that which his actual pensionable pay or, as the case may be, his pensionable pay as estimated by the Board under paragraph (9), bears to his reference pay for each year of service during that period.

(12) The Board shall calculate the amount of the special pension contributions payable in respect of special pensionable service during the limited period by applying a rate determined by the Scheme Actuary having regard to the rate required by paragraph (1A) of article 63 (pension contributions) for the appropriate period for the person’s pensionable pay.

(13) Within three months of receiving an application under paragraph (5), the Board shall give the applicant a notice setting out the period of service during the limited period which he may purchase, the amount of special pension contributions payable in respect of the mandatory special period, the amount of special pension contribution payable in respect of the remainder of his service during the limited period, the pensionable pay and in appropriate cases the final pensionable pay which the Board has determined was paid during the limited period.

(14) Where it is not reasonably practicable to comply with any requirement set out in this article within the period specified, the Board or applicant as the case may be shall comply with that requirement as soon as reasonably practicable after the end of that period”.

(7) In article 66(1) (election to purchase additional service) for “An election” substitute “Subject to article 66A, an election”.

(8) After article 66 insert—

“Election to purchase service during the limited period

66A.— (1) A person who intends to join this Scheme as a special pensioner member shall elect to pay mandatory special period pension contributions in respect of his service during the mandatory special period.

(2) A special pensioner member shall pay the mandatory special period pension contributions by way of a lump sum contribution which the special pensioner member may request the Board to deduct from any lump sum which he is entitled under this Scheme—

(a) pursuant to a notice to commute a portion of his pension under article 19 (commutation: general) of Part 3;

(b) under paragraph (8) of article 11A (special member’s ordinary pension) or under paragraph (10) of article 12A (retrospective award on ill-health retirement) of Part 3.

(3) A person who intends to join this Scheme as a special deferred member shall elect to pay mandatory special period pension contributions in respect of his service during the mandatory special period.

(4) The mandatory special period pension contributions may be paid by periodic contributions which shall be calculated in accordance with tables provided by the Scheme Actuary so as to discharge his liability over a period of 10 years or may be paid by way of a lump sum contribution.

(5) A special deferred member shall cease to pay periodic contributions referred to in paragraph (4) on the date on which his special deferred pension becomes payable, and he may then pay within three months of that date a lump sum of an amount equivalent to the contributions which would otherwise be paid calculated in accordance with tables provided by the Scheme Actuary.

(6) Where paragraph (5) applies, a special deferred member may pay all or part of the lump sum required by that paragraph by deduction from any lump sum which he may be entitled to receive pursuant to a notice to commute a portion of his pension under article 19 (commutation: general) or article 20 (commutation: small pensions) of Part 3.

(7) Subject to paragraphs (11) and (12), a person who intends to join this Scheme as a special firefighter member shall elect to pay mandatory special period pension contributions in respect of his service during the mandatory special period.

(8) The mandatory special period pension contributions may be paid by periodic contributions which shall be calculated in accordance with tables provided by the Scheme Actuary so as to discharge his liability over a period of 10 years or may be paid by way of a lump sum contribution.

(9) If a special firefighter member makes a contributions election, or retires, he shall cease to pay periodic contributions and he may then pay within three months of the date of the contributions election a lump sum of an amount equivalent to the contributions which would otherwise be paid calculated in accordance with tables provided by the Scheme Actuary.

(10) Where paragraph (9) applies so that a lump sum may be payable as a result of his retirement, the member may pay all or part of the lump sum required by that paragraph by deduction from any lump sum which he may be entitled to receive pursuant to a notice to commute a portion of his pension under article 19 (commutation: general) or article 20 (commutation: small pensions) of Part 3.

(11) A special firefighter member who elects under paragraph (5) of article 81A of Part 12 to transfer his accrued rights in the Firefighters’ Pension Scheme to his special membership of this Scheme shall pay mandatory special period pension contributions for the period of his service during the mandatory special period from the later of the date on which his pensionable service under the Firefighters’ Pension Scheme ended and 1st July 2000.

(12) A special firefighter member who elects under paragraph (5) of article 84A of Part 12 to convert his accrued rights as a special firefighter member to standard membership, shall pay mandatory special period pension contributions for the period of his service during the mandatory special period before 6th April 2006 and from that date shall pay pension contributions as if he had been a standard member until the date on which he joined this Scheme as a standard member.

(13) Interest is payable in respect of the special pension contribution required to be paid in respect of a special member’s service during the mandatory special period as follows—

(a) for the purposes of calculating interest under this paragraph it shall be assumed that in respect of the mandatory special period, pension contributions were payable by monthly periodic contributions from the first pay date following the start of the mandatory special period;

(b) interest starts to accrue from the date that the first monthly contribution would have been paid in accordance with sub-paragraph (a) and ceases to accrue on the date that the lump sum contribution or final periodic contribution is paid in accordance with paragraphs (2), (4), (5), (8);

(c) in relation to mandatory special period pension contributions which are paid by lump sum contribution, interest shall be calculated by applying the past interest rate to the contribution payable in accordance with article 63(1A) of Part 11 compounded monthly between the month each contribution would have been made in accordance with sub-paragraph (a) until the calculation date;

(d) in relation to mandatory special period pension contributions which are paid by periodic contribution—

(i) interest shall be calculated as for a lump sum contribution under sub-paragraph (c);

(ii) the amount of interest payable shall then be adjusted in accordance with tables provided by the Scheme Actuary so as to allow for interest at the future interest rate in relation to the period from the calculation date to the date that the contribution is paid, so as to discharge liability over a period of ten years;

(e) for the purpose of this article—

“calculation date” means—

(i)

in the case of a lump sum contribution, the date when the lump sum is paid; and

(ii)

in the case of payment of the mandatory special period pension contribution by periodic contribution, the date when the member joined this Scheme as a special member;

“future interest rate” is a rate equivalent to 1.5% plus the FTSE Actuaries UK Gilt 10 years yield index less the average of the FTSE Actuaries UK Index-linked Gilt 5 to 15 years index with assumed inflation rates of 0% and 5%

“past interest rate” is a rate equivalent to the interest available on the most recent issue of five-year fixed interest savings certificates from National Savings and Investments available on the 15th day of each month which would have been applicable to the period in question.

Election to purchase service during the limited period: supplemental provision

66B.— (1) Subject to paragraph (12), an election under article 66A shall be made by giving written notice to the Board during the period of three months beginning with the date on which the Board gave notice under article 65A(13).

(2) In preparing the tables required by paragraphs (5) and (9) of article 66A the Scheme Actuary must have regard to the rate of contribution referable to the period in respect of which the contribution relates and must use such other factors as he considers appropriate.

(3) The period of a person’s service referred to in paragraphs (1), (3) or (7) of article 66A shall be that part of the service set out in the Board’s notice to him under article 65A(13) in respect of which he elects to pay mandatory special period pension contributions from a date selected by him before 6th April 2006, or which applies under article 66A(11), and ending on the earlier of the date on which he joined this Scheme as a special member or a standard member and the date, if applicable, on which he was dismissed or retired from employment as a regular or retained firefighter.

(4) Where a person is required under paragraph (2), or has chosen under paragraph (4) or (8) of article 66A, to pay a lump sum contribution and this sum has not been paid within six months of his election under paragraph (1), (4) or (8), or such longer period as the Board may notify in writing to the person, the election under paragraph (1), (4) or (8) as the case may be shall be treated as not having been made.

(5) Where a person has chosen under paragraph (4) or (8) of article 66A to pay periodic contributions—

(a) where the first contribution has not been paid within three months of his election under paragraph (4) or (8), or such longer period as the Board may notify in writing to the person, the election shall be treated as not having been made;

(b) where three or more consecutive periodic contributions have not been paid and the amount remains outstanding, the Board shall require, by written notice, the special member to pay the outstanding periodic contributions within a period of 28 days beginning with the date the notice is served on the special member, and to resume the periodical contributions;

(c) if payment of the outstanding amount is not made within that period, or if a subsequent periodic contribution is not made within 28 days of it being due, the special member shall be treated as having ceased to pay mandatory special period contributions from the date that the last contribution was received and may not resume payment of such contributions.

(6) Subject to paragraphs (8) and (11), where paragraph (5) or (9) of article 66A applies, and the special deferred member or special firefighter member, as the case may be, does not pay the lump sum within the period specified in that paragraph, the period of service purchased shall be treated as if it were the period ascertained in accordance with the formula—

where—

A is the number of 45ths of special pensionable service which he elected to purchase,

B is the period in respect of which mandatory special period pension contributions have been made in accordance with his election, and

C is the period in respect of which mandatory special period pension contributions would have been made in accordance with his election.

(7) In the case of a firefighter to whom paragraph (11) of article 66A applies—

(a) his pension contribution as a standard member during the limited period shall be calculated as though these were mandatory special period pension contributions under paragraph (8) of article 66A;

(b) where paragraph (9) of article 66A applies, and the special firefighter member does not pay the lump sum within the period specified in that sub-paragraph, the period of service purchased as a standard member shall be treated as if it were the period ascertained in accordance with the formula—

where—

A is the number of 60ths of pensionable service as a standard member which he elected to purchase,

B is the period in respect of which pension contributions as a standard member have been paid during the limited period, and

C is the period in respect of which mandatory special period pension contributions would have been made in accordance with his election.

(8) Where periodic contributions cease as mentioned in paragraph (5) or (9) of article 66A when a pension becomes payable, the pension shall not be paid until the earlier of the date on which the lump sum mentioned in that paragraph has been paid or the special member has given notice that he will not pay the lump sum or the period mentioned in that paragraph has expired.

(9) Where service is purchased by the payment of periodic contributions under paragraph (4) or (8) of article 66A, the service shall accrue at the end of each year in accordance with the contributions paid.

(10) An election under article 66A—

(a) takes effect on the day on which the notice of the election is received by the Board; and

(b) is irrevocable once the lump sum has been paid or, as the case may be, the first periodical contribution has been paid.

(11) Where the special member dies before the mandatory special period pension contributions due in accordance with article 66A have been paid, those contributions shall be treated as paid and service during the mandatory special period shall be special pensionable service.

(12) Where it is not reasonably practicable to comply with the requirement in paragraph (1) within the period specified, the election shall be given by written notice as soon as reasonably practicable after the end of that period but in any event may not take effect after 31st March 2015.”.

(9) In article 67 (duration of periodical contributions and premature cessation)—

(a) in paragraph (3) after “Where a sub-paragraph of paragraph (2) applies” insert “and the additional service is not special pensionable service”;

(b) after paragraph (3) insert—

“(3A) Where a sub-paragraph of paragraph (2) applies and the additional service is special pensionable service, paragraph (3) applies with the substitution of the definition of “A” with—

““A” is the number of 45ths of additional special pensionable service which the special member elected to purchase.””

(c) in paragraph (4)—

(i) after sub-paragraph (a) insert—

“(aa) where he qualifies for a special member’s ordinary pension, as part of the special pensionable service on which the special member’s ordinary pension is calculated;”

(ii) in sub-paragraph (b) after “pensionable service” insert “or special pensionable service,”;

(d) in paragraph (5) after “pensionable service” insert “or special pensionable service”.

(10) In article 68 (discontinuance and resumption of periodical contributions)—

(a) in paragraph (4) for “The period of additional service” substitute “Subject to paragraph (4A), the period of additional service”;

(b) after paragraph (4), insert —

“(4A) Where the firefighter member is a special member, in paragraph (4) “A” is the number of 45ths of additional special pensionable service which the special member elected to purchase.”.

(11) In article 69(1) (periodical contributions in respect of periods of unpaid service or absence) after “pensionable service” insert “or special pensionable service”.

(12) In article 70 (effect of purchasing additional service by lump sum payment) in paragraphs (1) and (2) after “pensionable service” insert “or special pensionable service”.