The New Firefighters’ Pension Scheme Order (Northern Ireland) 2007 No. 215

ANNEX N.I. THE NEW FIREFIGHTERS’ PENSION SCHEME (NORTHERN IRELAND)

PART 12 N.I. TRANSFERS INTO AND OUT OF THE SCHEME

CHAPTER 1 N.I. INTERPRETATION OF PART 12 AND ENTITLEMENT TO TRANSFER VALUE PAYMENT

Interpretation of Part 12 N.I.

71.  In this Part—

“guaranteed cash equivalent transfer value payment” means a payment of the description mentioned in article 74(2); and

“public sector transfer arrangements” means arrangements approved by HM Treasury as providing reciprocal arrangements for the payment and receipt of transfer values between this Scheme and other occupational pension schemes.

Commencement Information

I1 ANNEX Scheme art. 71 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Entitlement to transfer value payment N.I.

72.—(1) This Part supplements the rights conferred by Chapter IV of Part IV of the 1993 Act (transfer values) (“Chapter IV”).

(2) A firefighter member or deferred member—

(a) to whom Chapter IV applies(1); and

(b) who is not a pension credit member or pensioner member of this Scheme,

is entitled to require the payment of a transfer value in respect of the rights to benefit that have accrued to or in respect of him under this Scheme.

(3) Subject to the provisions of this Part, any former firefighter member, other than a pensioner member, is entitled to require such a payment as if such rights had accrued to or in respect of him by reference to the pensionable service he is entitled to count under this Scheme (and references in this Part to his accrued rights or benefits are to be read accordingly).

(4) Paragraph (3) does not apply if the contributions the former member has paid during the period of service ending with his ceasing to be a firefighter member are refunded under article 18 and, where applicable, in accordance with Chapter V of Part IV of the 1993 Act.

(5) Paragraphs (2) and (3) do not apply to rights that are directly attributable to a pension credit.

Commencement Information

I2 ANNEX Scheme art. 72 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

CHAPTER 2 N.I. TRANSFERS OUT OF THE SCHEME

Applications for statements of entitlement N.I.

73.—(1) A member who requires a transfer value payment to be made must apply in writing to the Board for a statement of the amount of the cash equivalent of the member’s accrued benefits under the Scheme at the guarantee date (“a statement of entitlement”).

(2) In this Chapter, “the guarantee date” means any date that—

(a) falls within the required period;

(b) is chosen by the Board;

(c) is specified in the statement of entitlement; and

(d) is within the period of thirty days ending with the date on which the member is provided with the statement of entitlement.

(3) In counting the period of thirty days referred to in paragraph (2)(d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(4) In paragraph (2) “the required period” means—

(a) the period of three months beginning with the date of the member’s application for a statement of entitlement; or

(b) such longer period (not exceeding six months beginning with that date) as may reasonably be required if, for reasons beyond the control of the Board, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(5) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided.

(6) Where, in any period of twelve consecutive months, a member—

(a) has made, and not withdrawn, two applications for a statement of entitlement; and

(b) makes a third (or subsequent) application;

the Board shall not be required to entertain the application if it is not accompanied by a payment of such amount as the Board may reasonably require.

Commencement Information

I3 ANNEX Scheme art. 73 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Applications for transfer value payments N.I.

74.—(1) A member who has applied for and received a statement of entitlement under article 73 may apply in writing to the Board for a transfer value payment to be made.

(2) On making such an application a member becomes entitled to payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of paragraph (9)).

(3) An application under paragraph (1) must be made before the end of the period of three months beginning with the guarantee date, and the payment must be made no later than—

(a) six months after that date; or

(b) if it is earlier, the date on which the member reaches normal benefit age.

(4) The application must specify the pension scheme or other arrangement to which the payment or payments should be applied.

(5) Subject to paragraph (6), an application by a person who is entitled to apply for a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only be made before—

(a) the beginning of the period of one year ending with the date on which the member reaches normal benefit age; or

(b) the end of the period of six months beginning with the day after that on which the member’s pensionable service ends, provided that service ends at least one year before normal benefit age,

whichever is the later.

(6) An application for a transfer value payment to be made under public sector transfer arrangements may only be made—

(a) before the first anniversary of the day on which the member becomes [F1 , or is entitled] to be an active member of the scheme to which the transfer is to be made; and

(b) before the member reaches normal benefit age.

(7) An application by a person who is not entitled to apply for a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only be made—

(a) on or before the first anniversary of the day on which the applicant ceases to be an active member of this Scheme; and

(b) before the member reaches normal benefit age.

(8) An application under this article may be withdrawn by notice in writing, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given.

(9) If the payment is made later than six months after the guarantee date, the amount of the payment to which the member is entitled must be increased by—

(a) the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made; or

(b) if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of one per cent above base rate.

(10) In this article—

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in descending order of sequence of seven, is fourth in the sequence; and

“the reference banks” means the seven largest persons for the time being who—

(a)

have permission under Part IV of the Financial Services and Markets Act 2000 (permission to carry on regulated activities)(2) to accept deposits;

(b)

are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and

(c)

quote a base rate in sterling,

and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in Article 4 of the Companies (Northern Ireland) Order 1986 (“subsidiary”, “holding company” and “wholly owned subsidiary”))(3), as shown in the audited end-of-year accounts last published before that time.

Textual Amendments

F1 Words in Annex Scheme Pt. 12 art. 74(6)(a) substituted (with effect in accordance with art. 1(3) of the amending Rule) by The New Firefighters’ Pension Scheme (Amendment) Order (Northern Ireland) 2008 (S.R. 2008/381), art. 1(3), Sch. para. 10(a)(i)

Commencement Information

I4 ANNEX Scheme art. 74 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Ways in which transfer value payments may be applied N.I.

75.—(1) A member who is entitled to a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only require the Board to apply the guaranteed cash equivalent transfer value payment in one or more of the ways permitted under section 91 of that Act.

(2) A member who is not entitled to a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only require the Board to apply the guaranteed cash equivalent transfer value payment in one of the ways permitted under section 91 of that Act.

(3) The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (3) applies.

(4) The benefits attributable to—

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

may be excluded from the guaranteed cash equivalent transfer value payment if section 92(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights).

(5) A transfer payment may only be made to—

(a) a pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004; or

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part(4).

Commencement Information

I5 ANNEX Scheme art. 75 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Calculating amounts of transfer value payments N.I.

76.—(1) Subject to paragraph (3), the amount of the guaranteed cash equivalent transfer value payment is to be calculated in accordance with guidance and tables provided by the Scheme Actuary for use at the guarantee date.

(2) In preparing those tables the Scheme Actuary must use such factors as he considers appropriate, having regard to section 93 of the 1993 Act and regulations under that Act (whether or not the payment is in respect of a person entitled to a guaranteed cash equivalent transfer value payment under that Act).

(3) If the amount calculated in accordance with paragraph (1) is less than the minimum transfer value, the amount of the guaranteed cash equivalent transfer value payment is to be equal to that value instead.

(4) In paragraph (3) “the minimum transfer value”, in relation to any person, means the sum of—

(a) any transfer value payments that have been made to the Scheme in respect of him; and

(b) any contributions paid by him under article 63.

(5) If the transfer value payment is made under public sector transfer arrangements, the amount of the transfer value payment is calculated—

(a) in accordance with those arrangements rather than paragraphs (1) to (3);and

(b) by reference to the guidance and tables provided by the Scheme Actuary for the purposes of this paragraph that are in use on the date used for the calculation.

Commencement Information

I6 ANNEX Scheme art. 76 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Effect of transfers-out N.I.

77.  Where a transfer value payment is made under this Chapter in respect of a person’s rights under this Scheme, those rights are extinguished.

Commencement Information

I7 ANNEX Scheme art. 77 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

CHAPTER 3 N.I. TRANSFERS INTO THE SCHEME

Applications for acceptance of transfer value payment from another scheme N.I.

78.—(1) Subject to the provisions of this Part, a firefighter member may apply for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of him under—

(a) another occupational pension scheme registered under Chapter 2 of Part 4 of the Finance Act 2004;

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part(5); or

(c) a personal pension scheme,

to be accepted by the Board for the purposes of this Scheme.

(2) Paragraph (1) does not apply to rights that are directly referable to a pension credit.

(3) Paragraph (1) does not apply if the member is on unpaid absence that does not count as pensionable service.

Commencement Information

I8 ANNEX Scheme art. 78 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Procedure for applications under article 78 N.I.

79.—(1) An application under article 78—

(a) must be made in writing;

(b) must specify the scheme or arrangement from which the transfer value payment is to be made and the anticipated amount of the payment; and

(c) subject to [F2 paragraphs (2) to (4)] , must be made—

(i) before the beginning of the period of one year ending with the date on which the member reaches normal retirement age; and

(ii) in the case of a transfer value payment from a non-occupational pension scheme, during the period of one year beginning with the day on which the member becomes eligible to be a firefighter member, or such longer period as the Board may allow.

(2) [F3 “Subject to paragraph (4), in the case] of a transfer value payment to be made under public sector transfer arrangements, the application under article 78—

(a) must be made during the period of one year beginning with the day on which the member becomes eligible to be a firefighter memberF4 ...; and

(b) must be received by the Board before the applicant reaches the age which is the normal pension age under the scheme by which the transfer value payment is to be made.

[F5 (3) Where the application under article 78 is made by a special firefighter member, who was not already a member of this Scheme when he elected to become a special firefighter member, sub-paragraph (c) of paragraph (1) and paragraph (2) shall not apply.

(4) In the case of a person referred to in paragraph (3) and in the case of a transfer value payment to be made under public sector transfer arrangements, the application under article 78 must be made by that person during the period of twelve months beginning with the day on which the Board gave the applicant the notice required by article 65A(13) of Part 11.]

Textual Amendments

F2 Words in Annex Scheme art. 79(1)(c) substituted (retrospective and with effect in accordance with art. 1(3)(d) of the amending Rule) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(3)(d), Sch. para. 10(6)(a)

F3 Words in Annex Scheme art. 79(2) substituted (retrospective and with effect in accordance with art. 1(3)(d) of the amending Rule) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(3)(d), Sch. para. 10(6)(b)

F4 Words in Annex Scheme Pt. 12 art. 79(2)(a) omitted (with effect in accordance with art. 1(3) of the amending Rule) by virtue of The New Firefighters’ Pension Scheme (Amendment) Order (Northern Ireland) 2008 (S.R. 2008/381), art. 1(3), Sch. para. 10(b)

F5 Annex Scheme art. 79(3)(4) added (retrospective and with effect in accordance with art. 1(3)(d) of the amending Rule) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(3)(d), Sch. para. 10(6)(c)

Commencement Information

I9 ANNEX Scheme art. 79 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Acceptance of transfer value payments N.I.

80.—(1) Subject to paragraph (3) and paragraphs (2) and (3) of article 56 (reckoning of pensionable service), where an application is duly made by a member under article 78, the Board may accept the transfer value payment.

(2) If the Board accepts the payment, the member is entitled to count the period calculated in accordance with article 81 as pensionable service for the purposes of this Scheme.

(3) The Board may not accept a transfer value payment if—

F6 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) it would be applied in whole or in part in respect of the member’s or the member’s spouse’s or civil partner’s entitlement to a guaranteed minimum pension; and

(c) it is less than the amount required for that purpose, as calculated in accordance with guidance and tables prepared by the Scheme Actuary for the purposes of this paragraph.

Textual Amendments

F6 Annex Scheme Pt. 12 art. 80(3)(a) omitted (with effect in accordance with art. 1(3) of the amending Rule) by virtue of The New Firefighters’ Pension Scheme (Amendment) Order (Northern Ireland) 2008 (S.R. 2008/381), art. 1(3), Sch. para. 10(c)

Commencement Information

I10 ANNEX Scheme art. 80 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Calculation of transferred-in pensionable service N.I.

81.—(1) Subject to paragraph (3), the period of pensionable service that a member is entitled to count under article 80(2) shall be calculated as at the date on which the transfer value payment is received by the Board and in accordance with guidance and tables provided by the Scheme Actuary for the purpose.

(2) For the purposes of that calculation, the member’s pensionable earnings are to be taken to be the amount of those earnings as at—

(a) two months after the application under article 78 is received; or

(b) the date on which the transfer value payment is received,

whichever is the later; and, in a case where the transfer value payment is received earlier than two months after that application is received, any necessary adjustment shall be made to that calculation to reflect any change in the amount of those earnings.

(3) If the transfer payment is accepted under public sector transfer arrangements, the period that the member is entitled to count shall be calculated—

(a) subject to paragraph (4), in accordance with those arrangements; and

(b) by reference to the guidance and tables provided by the Scheme Actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.

(4) If the period that the member would be entitled to count would be greater if the transfer value payment were accepted otherwise than under public sector transfer arrangements—

(a) those arrangements shall not apply to the extent that they provide for the calculation of the period, and

(b) paragraph (1) shall apply instead.

Commencement Information

I11 ANNEX Scheme art. 81 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

[F7 CHAPTER 3A N.I. TRANSFERS TO SPECIAL MEMBERSHIP

Textual Amendments

F7 Pt. 12 Ch. 3A inserted (retrospective and with effect in accordance with art. 1(3)(d) of the amending Rule) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(3)(d), Sch. para. 10(9)

Transfer of accrued rights under the Firefighters’ Pension Scheme to special membership of this Scheme N.I.

81A.— (1) A person who is a deferred member of the Firefighters’ Pension Scheme and took up employment as a retained firefighter immediately after the termination of his employment as a regular firefighter and who is entitled to join this Scheme as a special firefighter member, may apply in writing to the Board for a statement of the amount of service to be treated as accrued if he were to elect to transfer his accrued rights under the Firefighters’ Pension Scheme to his special membership of this Scheme.

(2) Where the application under paragraph (1) is made at the same time as an application under article 65A(5) (purchase of service during the limited period) of Part 11 the Board shall provide a statement of the amount of service to be treated as special pensionable service if the applicant were to elect to transfer his accrued rights under the Firefighters’ Pension Scheme to his special membership of this Scheme at the same time as the Board give the notice under article 65A(13) of Part 11.

(3) Where an application under paragraph (1) is not made at the time specified in paragraph (2), it shall be made during the period of 12 months beginning with the day on which the Board gave the applicant the notice required by article 65A(13).

(4) Where paragraph (3) applies to the application, the Board shall provide a statement of the amount of service to be treated as special pensionable service if the applicant were to elect to transfer his accrued rights under the Firefighters’ Pension Scheme to his special membership of this Scheme within three months of the date of his application.

(5) A person who receives a statement under paragraph (2) or (4) may elect to transfer his accrued rights under the Firefighters’ Pension Scheme to his special membership of this Scheme.

(6) Where the application is made within the time specified in paragraph (2) and the election to transfer his accrued rights in the Firefighters’ Pension Scheme is made at the same time as the election to pay mandatory special period pension contributions under article 66A of Part 11, the period of the applicant’s pensionable service accrued under the Firefighters’ Pension Scheme shall be treated as special pensionable service accrued in this Scheme.

(7) Where the application is made within the period specified in paragraph (3), a transfer value shall be accepted under the public sector transfer arrangements and the period of special pensionable service which the member shall be entitled to count shall be calculated in accordance with those arrangements.

(8) An election under paragraph (5) shall be made by giving written notice to the Board and shall take effect on the day on which the notice is received by the Board.]

CHAPTER 4 N.I. MIS-SOLD PENSIONS AND RESTITUTION PAYMENTS

Interpretation of Chapter 4 N.I.

82.—(1) In this Chapter—

“calculated amount” means the amount which, in accordance with article 84, the Board calculates would need to be made as a restitution payment in respect of the firefighter concerned;

“methods and assumptions” means the methods and assumptions notified by the Scheme Actuary for the calculation of cash equivalent values for occupational pension schemes; and

“relevant period”, in relation to a firefighter, means the total of any periods of opted-out and, where appropriate, transferred-out service.

(2) For the purposes of this Chapter—

(a) a person shall be taken to have opted out if he had made a contributions election and for any period during which he was a firefighter he instead made contributions to a personal pension scheme; and

(b) a person shall be taken to have transferred out if the Board has made a transfer value payment in respect of him under Chapter 2 of this Part to the administrator of a personal pension scheme.

Commencement Information

I12 ANNEX Scheme art. 82 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Mis-sold pensions N.I.

83.—(1) This article applies to a firefighter who—

(a) has opted out or transferred out, or both; and

(b) has suffered actionable loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986 or section 150 of the Financial Services and Markets Act 2000(6) (actions for damages in respect of contraventions of rules etc made under the Act).

(2) A firefighter to whom this article applies who has given notice—

(a) under article 9 cancelling his contributions election; or

(b) under article 59(7) of the 2007 Scheme (cancellation of election not to pay contributions),

may give written notice to the Board that he wishes it to accept a transfer value payment in order to create or restore his pensionable service.

(3) Paragraph (4) or (5) applies where, within twelve months of the date of a notice given under paragraph (2) or such longer period as the Board may allow, the Board has accepted a transfer value payment in relation to the firefighter who gave the notice (whether or not he has ceased to be a firefighter after the date of the notice) not exceeding the calculated amount.

(4) Where the amount of the transfer value payment is equal to the calculated amount—

(a) the whole of the relevant period shall be treated as pensionable service; and

(b) for the purposes of calculating any award under this Scheme, the firefighter who gave the notice shall be treated as having made pension contributions throughout that period.

(5) Where the amount of the transfer value payment is less than the calculated amount—

(a) the Board shall, in accordance with the methods and assumptions, calculate the period of pensionable service that the transfer value payment represents, and treat that period as pensionable service;

(b) for the purposes of calculating any award under this Scheme, the firefighter who gave the notice shall be treated as having made pension contributions throughout that period; and

(c) that period shall be treated as a continuous period with the same final date as the final date of the relevant period.

(6) Where a firefighter who is being credited under paragraph (4) or (5) with a period of pensionable service has previously been credited, in respect of the relevant period, with—

(a) an additional period of pensionable service calculated in accordance with this Part, or

(b) an additional period of reckonable service calculated in accordance with Part 4 of Schedule 6 to the 2007 Scheme (amount of transfer value),

the Board may adjust the amount of the transfer value payment that it accepts under this article to ensure that no part of the additional period of pensionable or reckonable service that was previously credited is included in the period of pensionable service credited under paragraph (4) or (5).

Commencement Information

I13 ANNEX Scheme art. 83 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

Calculation of amount of restitution payment N.I.

84.—(1) The Board shall, in accordance with paragraph (2), calculate the restitution payment that would need to be made to it in respect of a person to whom article 83 applies to create or restore his position to what it would have been if he had not opted-out or, where relevant, transferred-out.

(2) The restitution payment is an amount equal to the sum of—

(a) the capitalised value at the material date, determined in accordance with the methods and assumptions, which would produce a service credit equal to his total period of opted-out service, including the capitalised value of any rights under the Pensions (Increase) Act (Northern Ireland) 1971(7) and the Pensions (Increase) (Northern Ireland) Order 1974(8); and

(b) in the case of a firefighter who also transferred out, the greater of—

(i) any transfer value paid by the Board to the administrator of a personal pension scheme in respect of the firefighter’s transferred-out service under Chapter 2 of this Part, increased by interest calculated at a rate approved by the Scheme Actuary over the period from the date of payment of that transfer value to the assumed calculation date; and

(ii) the cash equivalent transfer value that would be payable by the Board in respect of that transferred-out service if it were to pay a cash equivalent transfer value in respect of that service determined in accordance with the methods and assumptions applicable immediately after the assumed calculation date.

(3) In this article—

“assumed calculation date” means the date on which it is assumed, for the purpose of calculating a restitution payment, that a transfer value will be paid to the Board; and

“material date” means the date on which the Board receives a notice under article 83.

Commencement Information

I14 ANNEX Scheme art. 84 in operation at 30.3.2007 (with effect in accordance with art. 2(1)), see art. 2(1)

[F8 CHAPTER 5 N.I. CONVERTING MEMBERSHIP BETWEEN STANDARD AND SPECIAL MEMBERSHIP

Textual Amendments

F8 Pt. 12 Ch. 5 added (retrospective and with effect in accordance with art. 1(3)(d) of the amending Rule) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(3)(d), Sch. para. 10(10)

Converting membership from special membership to standard membership N.I.

84A.— (1) A person who is entitled to join this Scheme as a special firefighter member and is a standard member of this Scheme in respect of service which he would otherwise be able to reckon as special pensionable service may apply in writing to the Board for a statement of the amount of service to be treated as accrued if he converted his special membership to standard membership of this Scheme.

(2) Any application under paragraph (1) shall be made at the same time as an application under article 65A(5) (purchase of service during the limited period) of Part 11.

(3) At the same time as the Board gives the notice under article 65A(13) of Part 11, the Board shall provide a statement of the additional service to be treated as pensionable service if he converted his special membership to standard membership.

(4) For the purpose of calculating the pensionable service that a person would be treated as having accrued in this Scheme as a standard member on the conversion of his accrued rights as a special firefighter member, the Board shall apply the conversion factors set out in the tables in Schedule 2A applying the factors to the age the person was on 6th April 2006.

(5) Where the applicant elects in writing to convert his special membership to standard membership, the election shall be made at the same time as the election to purchase service during the limited period under paragraph (1), (3) or (7) article 66A and may not be made at any other time.

(6) The Board must not accept a person’s election to convert his membership from special membership to standard membership if the aggregate of—

(a) his pensionable service treated as accrued; and

(b) his prospective pensionable service, on the assumption that he continues to be a standard member of this scheme until he reaches normal retirement age,

would exceed 40 years by the time of his 60th birthday.

(7) When the payments required by article 66A(12) of Part 11 have been made—

(a) the additional pensionable service notified by the Board under paragraph (3) shall be added to his pensionable service as a standard member;

(b) from the date the Board adds that service, he shall cease to be a special firefighter member.

(8) An election under paragraph (5) shall be made by giving written notice to the Board and shall take effect on the day on which the notice is received by the Board.

Converting membership from standard membership to special membership N.I.

84B.— (1) This article applies—

(a) to a person who is entitled to join this Scheme as a special firefighter member and who is a standard member of this Scheme;

(b) in respect of pensionable service which he would be entitled to treat as special pensionable service.

(2) A person to whom this article applies may apply to the Board for a statement of the amount of service he would be entitled to treat as special pensionable service if he converted his standard membership to special membership and the amount of the payments required by sub-paragraphs (b) and (c) of paragraph (5).

(3) An application under paragraph (2) shall be made in writing at the same time as an application under article 65A(5) (purchase of service during the limited period) of Part 11.

(4) At the same time as the Board gives the notice under article 65A(13) of Part 11, the Board shall provide—

(a) a statement of the amount of service to be treated as special pensionable service if the applicant were to elect to convert his accrued rights as a standard member to his special membership;

(b) a statement of the amount of the payments required by paragraph (5).

(5) Where the member elects to transfer his accrued rights as a standard member of this Scheme to his special membership—

(a) he may only make his election at the same time as he makes his election to pay mandatory special period pension contributions under article 66A of Part 11;

(b) he shall pay an amount representing the difference between the pension contribution under article 63(1) of Part 11 which he has paid as a standard member and the pension contribution required to be paid as a special member under paragraph (1A) of that article;

(c) he shall pay interest on the amount payable under sub-paragraph (b) in accordance with paragraph (13);

(d) he shall pay those amounts in the same manner in which he chooses to pay mandatory special period pension contributions under article 66A of Part 11.

(6) When the payments required by paragraph (5) have been paid, and subject to paragraph (7), the member’s pensionable service as a standard member shall be converted to special pensionable service.

(7) Where a member’s pensionable service includes a period (“the transferred in period”) which the member is entitled to count as pensionable service in accordance with articles 80 and 81 of this Part, the transferred in period shall be converted to special pensionable service in accordance with guidance and tables provided by the Scheme Actuary for the purposes of this paragraph.

(8) Subject to paragraph (9), where article 66A(3) (election to purchase service during the limited period) of Part 11 applies, and the member does not within the period specified in that paragraph pay a lump sum equivalent to the balance of the payment referred to in paragraph (5)(b), ascertained in accordance with tables provided by the Scheme Actuary, the period of service as a standard member converted to special pensionable service shall be treated as if it were the period ascertained in accordance with the formula—

where—

A is the period of service as a standard member which he elected to convert,

B is the period of that service in respect of which the payment referred to in paragraph (5)(b) has been paid, and

C is the period of that service in respect of which the payment referred to in paragraph (5)(b) would have been paid in accordance with his election.

(9) Where the special member dies before the payment referred to in paragraph (5)(b) has been made in full, it shall be treated as having been made in full and the period of service as a standard member which he had elected to convert shall be special pensionable service.

(10) This paragraph applies where a special member’s pensionable service as a standard member has been converted to special pensionable service in accordance with this article and—

(a) where the member is required to make the payment referred to in paragraph (5)(b) by lump sum, the lump sum has not been paid within six months of his election under paragraph (5) or such longer period as the Board may notify in writing to the person; or

(b) where the member is required to make the payment by periodic contribution, three or more consecutive periodic contributions have not been paid and the amount remains outstanding.

(11) Where paragraph (10) applies in the circumstances referred to in paragraph (10)(a)—

(a) the election to convert shall be treated as having been revoked; and

(b) any contributions that the member has paid shall be credited against the mandatory special period pension contributions payable by the member.

(12) Where paragraph (10) applies in the circumstances referred to in paragraph (10)(b)—

(a) the Board shall, by written notice, require the member to pay the outstanding amount within a period of 28 days beginning with the date the notice is served on the member, and to resume the periodical contributions;

(b) 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 election to convert shall be treated as revoked; and

(c) any contributions that the member has paid shall be credited against the mandatory special period pension contributions payable by the member.

(13) Interest on the amount referred to in paragraph (5)(b) (“the relevant amount”) is calculated as follows—

(a) for the purposes of this paragraph, it shall be assumed that the pension contributions due under article 63(1A) of Part 11 (pension contributions) were payable at the same time as the contributions which the member paid under article 63(1) of that Part;

(b) interest starts to accrue on the relevant amount from the beginning of the period of pensionable service which is to be treated as special pensionable service in accordance with this article and ceases to accrue on the calculation date;

(c) where the relevant amount is to be paid by lump sum, interest shall be calculated by applying the past interest rate to that amount compounded monthly between the month each contribution under article 63(1A) of Part 11 would have been made in accordance with sub-paragraph (a) until the calculation date;

(d) where the relevant amount is to be paid by periodic contribution—

(i) interest shall be calculated as for a lump sum payment 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 relevant amount 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.

(14) An election under paragraph (5) shall be made by giving written notice to the Board and shall take effect on the day on which the notice is received by the Board.

Converting membership from standard membership to special membership – special pensioner members N.I.

84C.— (1) This article applies—

(a) to a person who is entitled to be a special pensioner member and who is in receipt of an ordinary pension, a higher tier ill-health pension or a lower tier ill-health pension;

(b) in respect of pensionable service which he would be entitled to treat as special pensionable service.

(2) A person to whom this article applies may apply to the Board for a statement of the amount of pensionable service which he would be entitled to treat as special pensionable service and the amount of the payments required by required by sub-paragraphs (b) and (c) of paragraph (5).

(3) An application under paragraph (2) shall be made in writing at the same time as an application under article 65A(5) (purchase of service during the limited period) of Part 11.

(4) At the same time as the Board give the notice under article 65A(13) of Part 11, the Board shall provide—

(a) a statement of the amount of pensionable service which may be treated as special pensionable service; and

(b) a statement of the amount of the payments required by paragraph (5).

(5) Where the member elects to have his pensionable service treated as special pensionable service—

(a) he may only make his election at the same time as he makes his election to pay mandatory special period pension contributions under article 66A of Part 11;

(b) he shall pay an amount representing the difference between the pension contribution under article 63(1) of Part 11 which he has paid as a standard member and the pension contribution required to be paid as a special member under paragraph (1A) of that article;

(c) he shall pay interest on the amount payable under sub-paragraph (b) in accordance with paragraph (12);

(d) he shall pay that amount by lump sum payment.

(6) When the payment required by paragraph (5) has been paid, and subject to paragraph (7)—

(a) the member’s pensionable service as a standard member shall be treated as special pensionable service;

(b) the member shall continue to receive his ordinary or ill-health pension in respect of his pensionable service as a standard member;

(c) the member shall, in addition, receive his special member’s ordinary pension or ill-health pension in respect of his special pensionable service as a special member but the special member’s ordinary pension or ill-health pension in respect of his special pensionable service shall be reduced in accordance with tables produced by the Scheme Actuary so that the total amount of pension that the member receives in accordance with sub-paragraphs (b) and this sub-paragraph does not exceed the amount he would have received as a special member if—

(i) the had not been an ordinary member of the Scheme; and

(ii) all of his service from the start of the mandatory special period to the date that the member’s special member’s ordinary pension or ill-health pension, as the case may be, becomes payable and which is eligible to be treated as special pensionable service, was treated as special pensionable service.

(7) Where a member’s pensionable service includes a period (“the transferred in period”) which the member is entitled to count as pensionable service in accordance with articles 80 and 81 of this Part, the transferred in period shall be converted to special pensionable service in accordance with guidance and tables provided by the Scheme Actuary for the purposes of this paragraph.

(8) Subject to paragraph (9), where article 66(5) or (9) (election to purchase service during the limited period) of Part 11 applies, and the member does not within the period specified in that paragraph pay a lump sum equivalent to the balance of the payment referred to in paragraph (5)(b), ascertained in accordance with tables provided by the Scheme Actuary, the period of service as a standard member converted to special pensionable service shall be treated as if it were the period ascertained in accordance with the formula—

where—

A is the period of service as a standard member which he elected to convert,

B is the period of that service in respect of which the payment referred to in paragraph (5)(b) has been paid, and

C is the period of that service in respect of which the payment referred to in paragraph (5)(b) would have been paid in accordance with his election.

(9) Where the special member dies before the payment referred to in paragraph (5)(b) has been made in full, it shall be treated as having been made in full and the period of service as a standard member which he had elected to convert shall be special pensionable service.

(10) This paragraph applies where—

(a) a member’s pensionable service as a standard member has been converted to special pensionable service in accordance with this article; and

(b) the lump sum due in respect of the amount payable in accordance with paragraph (5)(b) has not been paid within six months of his election under paragraph (5) or such longer period as the Board may notify in writing to the person.

(11) Where paragraph (10) applies—

(a) the election to convert shall be treated as having been revoked; and

(b) any amount that the member has paid in respect of the amount due under paragraph (5)(b) shall be credited against the mandatory special period pension contributions payable by the member.

(12) Interest on the amount referred to in paragraph (5)(b) (“the relevant amount”) is calculated as follows—

(a) for the purposes of this paragraph, it shall be assumed that the pension contributions due under article 63(1A) of Part 11 (pension contributions) were payable at the same time as the contributions which the member paid under article 63(1) of that Part;

(b) interest starts to accrue on the relevant amount from the beginning of the period of pensionable service which is to be treated as special pensionable service in accordance with this article and ceases to accrue on the calculation date;

(c) where the relevant amount is to be paid by lump sum, interest shall be calculated by applying the past interest rate to that amount compounded monthly between the month each contribution under article 63(1A) of Part 11 would have been made in accordance with sub-paragraph (a) until the calculation date;

(d) where the relevant amount is to be paid by periodic contribution—

(i) interest shall be calculated as for a lump sum payment 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 relevant amount 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.

(13) An election under paragraph (5) shall be made by giving written notice to the Board and shall take effect on the day on which the notice is received by the Board.]

(1)

See section 89(1)(a) of the Pension Schemes (Northern Ireland) Act 1993 (c.49).

(2)

2000 c.8, to which there are amendments not relevant to this Order.

(3)

S.I. 1986/1032 (N.I. 6) Article 4 was substituted by Article 62 of the Companies (No 2) (Northern Ireland) Order 1990 S.I. 1990/1504 (N. I. 10).

(4)

See section 169(2) of that Act

(5)

See section 169(2) of the Finance Act 2004 (c.12).

(6)

2000 c.8, to which there are amendments not relevant to this Order.

(7)

1971 c.35 (N.I.).

(8)

S.I. 1974/1267 (N.I. 2).