2015 No. 319
The Firefighters’ Pension Scheme (England) (Consequential Provisions) Regulations 2015
Made
Coming into force in accordance with regulation 1
The Secretary of State for Communities and Local Government makes the following Regulations in exercise of the powers conferred by sections 1(1) and (2)(f), 2(1) and 3(1), (2), (3)(a) and (4) of the Public Service Pensions Act 20131.
In accordance with section 21 of that Act, the Secretary of State has consulted the representatives of such persons as appear to the Secretary of State likely to be affected by these Regulations.
In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.
Pursuant to section 24(1) and (3) of that Act, a draft of this instrument has been laid before, and approved by a resolution of, each House of Parliament.
PART 1Introductory
Citation, commencement and expiry1
1
These Regulations may be cited as the Firefighters’ Pension Scheme (England) (Consequential Provisions) Regulations 2015.
2
With the exception of regulation 10, these Regulations come into force on 1st April 2015.
3
Regulation 10 comes into force on the same day as paragraph 38 of Schedule 13 to the Pensions Act 20142 comes into force, and on that day regulation 9 ceases to have effect.
Interpretation2
In these Regulations—
“the 1993 Act” means the Pension Schemes Act 19933;
“the 2013 Act” means the Public Service Pensions Act 2013;
“the new scheme” means the scheme established by regulation 2 of the Firefighters’ Pension Scheme (England) Regulations 20144; and
“old scheme” means the scheme constituted by the Firemen’s Pension Scheme Order 19925 or the scheme constituted by the Firefighters’ Pension Scheme (England) Order 20066.
PART 2Modification of contracting-out provisions
Application of this Part3
This Part applies where—
a
an election is made under section 11 (elections as to employments covered by contracting-out certificates) of the 1993 Act7 in relation to persons who become members of the new scheme on or after 1st April 2015 and before 6th April 2016 (whether or not any of those persons are members of an old scheme); and
b
the new scheme satisfies the requirements of section 9 (requirements for certification of schemes) of the 1993 Act8.
Contracting-out4
1
Part 2 of the Occupational Pension Schemes (Contracting-out) Regulations 19969 (certification of employments) is modified as follows in its application to the new scheme.
2
The requirements in regulation 2(1)(a) (making of elections for the issue of contracting-out certificates) and regulations 3 (notices by employers of intended election) to 5 (time for making an election) do not apply.
3
In regulation 6 (information to be included in an election)—
a
paragraph (1) is to be read as though, for sub-paragraphs (a) to (f), there were substituted—
a
the name by which the new scheme is to be known;
b
the name by which the old schemes are known; and
c
any other information necessary to enable the Commissioners for Her Majesty’s Revenue and Customs to identify the old schemes.
b
paragraphs (2) and (3) do not apply.
PART 3Modification of early leaver and other provisions
Application of this Part5
This Part applies where a person (P)—
a
is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2013 Act (final salary link);
b
is a member of the new scheme by virtue of pensionable service for the new scheme; and
c
is a person to whom paragraph 1 or 2 of Schedule 7 to the 2013 Act applies by virtue of that person’s pensionable service for the new scheme, and whose final salary falls for the purposes of the old scheme to be determined by reference to that paragraph.
Certification6
1
Section 15A of the 1993 Act10 (reduction of guaranteed minimum in consequence of pension debit) is modified as follows in relation to P.
2
In the application of that section to the old scheme, the reference in subsection (2) of that section to pensionable service under the scheme is to be taken as a reference to pensionable service either for the old scheme or for the new scheme.
Preservation of benefit7
1
Chapter 1 of Part 4 of the 1993 Act (protection for early leavers: preservation of benefit) is modified as follows in relation to P.
2
In the application of that Chapter to the old scheme—
a
in section 7011 (interpretation), in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme;
b
in section 71(1) (basic principle as to short service benefit)—
i
the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision;
ii
a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme;
iii
a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
iv
a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme,
and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;
c
in section 71(5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
d
in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the old scheme or for the old and new schemes taken together; and
e
in sections 72(2) (no discrimination between short service and long service beneficiaries), 74(6) and (7) (computation of short service benefit), 75(3) and (4) (credits) and 76(1) and (3) (pension increases), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
3
In the application of that Chapter to the new scheme—
a
in section 70, in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme;
b
in section 71(1)—
i
the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision;
ii
a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme;
iii
a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme,
and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;
c
in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the new scheme or for the old and new schemes taken together; and
d
in section 74(6), in relation to pensionable service which is terminated, the reference to the beginning of that service is to be taken as a reference to the beginning of pensionable service for the old scheme.
Revaluation of preserved benefit8
1
Chapter 2 of Part 4 of the 1993 Act (protection for early leavers: revaluation of accrued benefits) is modified as follows.
2
In the application of Chapter 2 for the purpose of revaluing benefit payable to or in respect of P under the old scheme—
a
in section 83(1)(a)(ii)12 (scope of Chapter 2), the reference to the date on which P’s pensionable service ends is to be taken as a reference to the date on which P’s pensionable service ends in relation to the new scheme; and
b
subsequent references in that Chapter to “the termination date” and the “pre-pension period” are to be construed accordingly.
Protection of increases in guaranteed minimum pensions9
1
Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme—
a
in section 87(1)(a)(i)13 (general protection principle), the reference to the time when P ceases to be in contracted-out employment by reference to a scheme is to be taken as a reference to the time when P ceases to be in employment which is contracted-out by reference to the new scheme; and
b
subsequent references to “the cessation date” are to be construed accordingly.
Protection of increases in guaranteed minimum pensions after abolition of contracting-out10
1
Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme—
a
in section 87(1)(a)(i) (general protection principle), the reference to the time when P ceases to be in pensionable service under a scheme that was, before the second abolition date, a salary-related contracted-out scheme is to be taken as a reference to the time when P ceases to be in pensionable service in relation to the new scheme; and
b
subsequent references to “the cessation date” are to be construed accordingly.
Transfer values11
1
Chapter 4 of Part 4 of the 1993 Act (protection for early leavers: transfer values) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme, in—
a
section 93(1)(a)14 (scope of Chapter 4),
b
section 97(3)(a) (calculation of cash equivalents), and
c
section 98(1A) and (3)15 (variation and loss of rights under section 94),
a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
Transfer values regulations12
1
The Occupational Pension Schemes (Transfer Values) Regulations 199616 are modified as follows.
2
In the application of regulation 3 of those Regulations (rules on continuation in employment after termination of pensionable service) to P as a member of the old scheme—
a
in paragraph (1), a reference to employment to which a scheme applies is to be taken as a reference to employment to which the new scheme applies;
b
in paragraph (1)(a), a reference to P’s pensionable service terminating at P’s request is to be taken as a reference to P’s pensionable service in relation to the new scheme so terminating; and
c
in paragraph (1)(b)(i), a reference to P’s pensionable service continuing until the guarantee date is to be taken as a reference to P’s pensionable service in relation to the new scheme so continuing.
3
In the application of regulation 4 of those Regulations (right to further cash equivalent on termination of employment to which the scheme applies) to P as a member of the old scheme, in paragraphs (1), (2), (3)(a) and (4) a reference to termination of P’s employment is to be taken as a reference to termination of P’s employment to which the new scheme applies.
PART 4Modification of tax regime
Lifetime allowance charge13
1
This regulation applies to a person (P) who—
a
is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2013 Act (final salary link);
b
is a member of the new scheme by virtue of pensionable service for the new scheme;
c
is being paid an upper or a lower tier ill-health pension under regulation 65 (entitlement to lower tier ill-health pension and higher tier ill-health pension) of the Firefighters’ Pension Scheme (England) Regulations 2014; and
d
has an ill-health pension paid from the new scheme reduced as a consequence of P becoming entitled to payment of a scheme pension (within the meaning of paragraph 2 of Schedule 28 to the Finance Act 200417) under the old scheme.
2
Section 216 of the Finance Act 200418 (benefit crystallisation events and amounts crystallised) is modified in its application to P as specified in paragraph (3).
3
The payment of any scheme pension from the old scheme to P is treated as if it was not a benefit crystallisation event within the meaning of section 216 of the Finance Act 2004.
Annual allowance charge14
1
This regulation applies to a person (P) who—
a
is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2013 Act;
b
is a member of the new scheme by virtue of pensionable service for the new scheme; and
c
becomes entitled to payment of a lower tier ill-health pension under regulation 65 of the Firefighters’ Pension Scheme (England) Regulations 2014.
2
Section 234 of the Finance Act 200419 (defined benefits arrangements) is modified in its application to P as specified in paragraph (3).
3
When calculating the closing value of P’s rights under the new scheme for the pension input period during which P becomes entitled to payment of the lower tier ill-health pension, the element of the lower tier ill-health pension that represents pensionable service for the old scheme is not to be counted as being part of the closing value.
PART 5Modification of short service benefit provisions
Short service benefit15
1
This regulation applies to a person (P)—
a
who is a deferred member of the new scheme;
b
who is entitled to benefits under the new scheme; and
c
whose–
i
entitlement to benefits under the new scheme is determined by, or
ii
benefits under the new scheme are computed by reference to,
P’s deferred pension age rather than P’s normal pension age.
2
For the purposes of the requirements in sections 71, 72, 74 and 75 of the 1993 Act20 and in any subordinate legislation made under Chapter 1 of Part 4 of that Act, as they apply in relation to P, any difference–
a
between P’s entitlement to benefits under the new scheme and any active member’s entitlement to benefits under the new scheme, or
b
between the computation of P’s benefits under the new scheme and any computation of benefits of an active member under the new scheme,
is ignored.
Signed by authority of the Secretary of State for Communities and Local Government
We consent
(This note is not part of the Regulations)