Citation, application and commencement

1.-(1) This Order may be cited as the Firefighters' Pension Scheme (Amendment and Transitional Provisions) (England) Order 2016.

(2) This Order applies in relation to England only(3).

(3) This Order comes into force on 30th September 2016 but article 2(2) has effect from 1st December 2006.

Amendment of the Firemen's Pension Scheme Order 1992

2.-(1) Schedule 2 to the Firemen's Pension Scheme Order 1992(4) is amended as follows.

(2) In rule G2 (pension contributions)(5)-

(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 paragraph (3) of rule LA1 (establishment, maintenance and operation of firefighters' pension fund etc)(6) after sub-paragraph (e) insert-

"; and

(f)sums payable under article 3 of the Firefighters' Pension Scheme (Amendment and Transitional Provisions) (England) Order 2016.".

Transitional provision

3.-(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 with 1st December 2006 and ending with 30th September 2016, the firefighter paid pensions contributions pursuant to rule G2(1) of the Firefighters' Pension 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

(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 with the first day of the month in which each contribution was paid and ends with 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 person who died before 30th September 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 person's personal representatives.

(7) For the purposes of this article-

"Bank of England base rate" means-

"fire and rescue authority" has the same meaning as in the Fire and Rescue Services Act 2004(8); and

"past interest rate" is a rate equivalent to the Bank of England base rate applicable on each day of the period specified in paragraph (5).

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Firefighters' Pension Scheme 1992 (set out in Schedule 2 to the Firemen's Pension Scheme Order 1992 S.I. 1992/129, "the Scheme"), as it has effect in England.

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 1st 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 that have been paid between 1st 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 (c. 12). Under article 2(3), payments will be made from the Firefighters' Pension Fund which each fire and rescue authority is required to establish and maintain for the purposes of the Scheme.

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