Office of Public Sector Information

PART 5 AWARDS ON DEATH

Death grant

35.—(1) On the death of a person while serving as a firefighter member, the Board shall pay a death grant of an amount ascertained in accordance with the following provisions of this article (whether or not a pension is payable under any other Part).

(2) Subject to paragraphs (3) to (5) and, where paragraph (8) applies, paragraph (9), the amount is three times that of the deceased’s pensionable pay at the time of his death, expressed as an annual rate.

(3) Where—

(a) the deceased was a whole-time firefighter member at the time of his death;

(b) had he lived, the deceased would have been entitled to two pensions under article 17; and

(c) the product of the following formula is greater than three times that of the deceased’s pensionable pay at the time of his death, expressed as an annual rate—

, where

A is the amount of the deceased’s pensionable pay on his last day of service that would have been used in the calculation of his pension under article 17(3);

B is the deceased’s pensionable service that would have been used in that calculation;

C is the deceased’s qualifying service;

D is the deceased’s pensionable service that would have been used in the calculation of his pension under article 17(4); and

E is the deceased’s pensionable pay at the time of his death,

the amount of the death grant is that greater amount.

(4) Where the deceased was a part–time firefighter member at any time during his period of service (whether or not he was a whole-time firefighter member for part of that period), the amount of the death grant is the greater of—

(a) three times his pensionable pay at the time of his death (which, if he was then employed part–time, would be calculated at the part–time rate), expressed as an annual rate; and

(b) the product of the formula—

, where

F is the deceased’s pensionable service;

G is the deceased’s qualifying service; and

H is the pensionable pay that he would have received if, throughout his period of service, he had been a whole–time firefighter of equivalent role and length of service.

(5) Where the deceased—

(a) had become entitled to two pensions under article 17(1) at the time of his death; and

(b) had been a part–time firefighter member during the period of service in respect of which he was entitled to a second pension under article 17(4) (whether or not he had been a whole-time firefighter member for part of that period),

the amount is whichever is the greatest of—

(i) three times his pensionable pay at the time of his death, expressed as an annual rate;

(ii) the product of the formula specified in paragraph (3); and

(iii) the product of the formula specified in paragraph (4).

(6) Where the deceased was absent from duty without pay immediately before the day on which he died, his pensionable pay for the purposes of this article, subject to paragraph (8), shall be taken to be the amount, expressed as an annual rate, of the pay appropriate to his role and conditioned hours on the last occasion that he received it.

(7) In paragraph (6), “conditioned hours” means the number of hours that the deceased was required to work each week under the terms of his contract of employment.

(8) The pensionable pay of a person who—

(a) had made an election under article 58 (reckoning of unpaid period of absence), and

(b) dies before making any payment under paragraph (2) of that article,

shall be taken to be the amount, expressed as an annual rate, of the pensionable pay that would have been paid if the period of the person’s absence from duty without pay had reckoned as pensionable service.

(9) Where paragraph (8) applies, the death grant shall be abated by the amount due to the Board under article 58(1).

(10) Subject to paragraph (11), the death grant may be paid, in whole or in part to such person or persons as the Board thinks fit.

(11) Subject to paragraph (12), the Board must not pay any part of a death grant to a person who is convicted of the murder or manslaughter of the deceased.

(12) Where a conviction of the description mentioned in paragraph (11) is quashed on appeal, the Board may, if it has not then paid the death grant in full, pay part of it to the person whose conviction is quashed.

Post-retirement death grant

36.—(1) Where—

(a) a pension under any of articles 11 to 13, 15 or 16 is in payment; and

(b) the pensioner dies within five years of the pension coming into payment,

the Board shall pay, by way of post retirement death grant, an amount equal to the difference between—

(i) the amount that it would have paid to the pensioner in that five year period, disregarding any increase in the pension that might have become payable after his death; and

(ii) the amount paid to him before his death, including any lump sum that he may have received on commutation under article 19 or 20.

(2) Paragraphs (9) to (12) of article 35 shall apply in relation to a grant under this article as they apply in relation to a death grant.

PART 6 PENSION SHARING ON DIVORCE

Pension credit member’s entitlement to pension

37.—(1) A pension credit member is entitled to a pension for life which becomes payable—

(a) when he attains the age of 65; or

(b) if it is later, when the pension sharing order under which he is entitled to the pension credit takes effect.

(2) The pension must be of such an amount that its actuarial value is equal to the member’s pension credit, as calculated from tables prepared by the Scheme Actuary and in accordance with regulations made under paragraph 5(b) of Schedule 5 to the 1999 Order.

Commutation of whole of pension credit benefits

38.—(1) In the circumstances described in regulation 3(2)(b) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000(24) (commutation of pension credit benefit: small pensions), the Board may with the agreement of the pension credit member, commute for a lump sum the whole of the pension to which a pension credit member is entitled under article 37 if, after commutation, the lump sum would be a trivial commutation lump sum death benefit within the meaning of paragraph 20 of Schedule 29 to the Finance Act 2004.

(2) The lump sum commuted under paragraph (1) is the actuarial equivalent of the pension at normal benefit age, calculated from tables prepared by the Scheme Actuary.

Commutation of part of pension credit benefits

39.—(1) Subject to paragraph (3), a pension credit member may commute for a lump sum a portion of the pension to which he is entitled or prospectively entitled to under article 37 (“the commuted portion”).

(2) The commuted portion must not exceed—

(a) one quarter of the amount of the pension; or

(b) the annual rate of the pension for the year that it is payable, disregarding—

(i) the reduction resulting from the application of this article; and

(ii) any reduction resulting from the application of another provision of this Scheme.

(3) Paragraph (1) does not apply if the pension debit member from whose rights the pension credit member’s pension credit is derived has received a lump sum under article 19 (commutation: general) before the date on which the pension sharing order takes effect.

(4) A person who wishes to commute a portion of a pension under paragraph (1) must give the Board written confirmation of the commutation, not later than the day before the pension comes into payment and not earlier than four months before—

(a) the date on which the person attains normal benefit age; or

(b) the date on which the pension sharing order takes effect,

whichever is the later.

(5) Notice of commutation must specify the commuted portion.

(6) A person’s notice of commutation takes effect on the date on which the pension under article 37 becomes payable.

(7) When a person’s notice of commutation takes effect, the Board shall—

(a) reduce the pension by the commuted portion;

(b) calculate the lump sum by multiplying by 12 the amount of the person’s pension represented by the commuted portion at the date of retirement; and

(c) pay him the lump sum as soon as reasonably practicable after—

(i) the date on which he attains normal benefit age; or

(ii) the date on which the pension sharing order takes effect,

whichever is the later.

Application of general rules

40.—(1) The provisions of this Scheme specified in paragraph (2) apply to pension credit members and awards payable to or in respect of them; but except where other provision is made by this Part or a contrary intention appears—

(a) this Scheme shall not apply to pension credit members and benefits payable to or in respect of them, except if and to the extent that they are also members of this Scheme in another capacity or they are also dependants of a member; and

(b) benefits payable to or in respect of a pension credit member may not be aggregated with benefits payable to or in respect of him—

(i) in any other capacity; or

(ii) as a pension credit member, deriving from any other pension debit member.

(2) The provisions are—

(a) article 46 (determinations and decisions by the Board);

(b) article 54 (withdrawal of pension on conviction of certain offences);

(c) article 95 (deduction of tax and lifetime allowance);

(d) article 96 (payment of awards);

(e) article 98 (payments for minors and persons incapable of managing their affairs); and

(f) article 99 (payment of awards: further supplementary provision).

Post-retirement death grant: pension credit members

41.—(1) Where—

(a) a pension credit member dies within five years of the pension under article 37 coming into payment and before his 75th birthday; and

(b) there is a difference between—

(i) the amount that is five times the pension, calculated at the annual rate effective on the day that it came into payment; and

(ii) the aggregate of—

(aa) the instalments of pension that have been paid; and

(bb) any lump sum received on commutation under article 39.

the Board shall pay a post-retirement death grant of the amount of that difference.

(2) The grant may be paid, in whole or in part, to such person or persons as the Board thinks fit.

(3) For the purposes of paragraph (1), any increases which, if the pension had continued in payment, would have been taken into account, shall be disregarded.