PART II EXPRESSIONS RELATED TO NATIONAL INSURANCE AND SOCIAL SECURITY ACTS AND ORDERS

1.  In this Scheme “employed contributor’s employment”, “graduated contribution”, “graduated retirement benefit”, “non-participating employment”, and “payment in lieu of contributions” have the meaning which they had for the purposes of the National Insurance Act (Northern Ireland) 1966(60) immediately before its repeal by the Social Security (Consequential Provisions) Act 1975(61).

2.  In this Scheme “state pensionable age” means pensionable age as determined in accordance with the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995(62).

3.  In this Scheme a reference to a participating period of relevant employment is a reference to a period of employed contributor’s employment after 5th April 1961 and before state pensionable age other than —

(a) service in the armed forces; and

(b) non-participating employment at the end of which no payment in lieu of contributions fell to be made,

and for the purposes of this paragraph a period of employed contributor’s employment or of non-participating employment shall be treated as having continued during periods of holiday and temporary incapacity for work and similar temporary interruptions.

4.—(1) In this Scheme—

(a) any reference to the secured portion of a pension is a reference to the portion of it which equals the assumed graduated retirement benefit; and

(b) any reference to the unsecured portion of a pension shall be construed accordingly.

(2) The assumed graduated retirement benefit is the graduated retirement benefit that would be payable to the pensioner on the assumption that—

(a) he retired from regular employment on attaining state pensionable age;

(b) a payment in lieu of contributions was made in respect of the whole of any period of non-participating employment by virtue of which he is entitled to reckon pensionable service for the purposes of the pension; and

(c) the period was one at the end of which no payment in lieu of contributions in fact fell to be made,

and for the purposes of this paragraph a period of non-participating employment shall be treated as having continued during periods of holiday and temporary incapacity for work and similar temporary interruptions.

5.  For the purposes of this Scheme the annual rate of graduated retirement benefit shall be calculated as if there were 52 1/6th weeks in a year.

6.  In this Scheme “contracted-out employment”, “contracted-out scheme”, “earnings factors”, “guaranteed minimum”, “guaranteed minimum pension” and “contributions equivalent premium” have the meanings which they have for the purposes of the Pension Schemes (Northern Ireland) Act 1993.

7.  In this Scheme any reference to a case in which a contributions equivalent premium has been paid includes a reference to a case in which such a premium is payable but has not been paid by virtue of regulations under Schedule 1 to the Pension Schemes (Northern Ireland) Act 1993 dispensing with the payment of such a premium where its amount would be inconsiderable.

8.  In this Scheme any reference to the guaranteed minimum in relation to a pension under a pension scheme at a particular time is a reference to the amount certified by the Department for Social Development as that minimum at that time.

9.  In the case of a person entitled to reckon a period of pensionable service by virtue of service or employment in Great Britain in respect of which he was subject to superannuation arrangements, this Scheme has effect as if any reference to the National Insurance Act (Northern Ireland) 1966 or the Pension Schemes (Northern Ireland) Act 1993 included a reference to any enactment of the Parliament of the United Kingdom making provision for corresponding purposes.

SCHEDULE 2 PERSONAL AWARDS

Articles 13(3) and 18(7)

PART I ORDINARY PENSION

Subject to Parts IV, VI and VII, the amount of an ordinary pension is—

where—

A is the person’s average pensionable pay,

B is the period in years (subject to a maximum of 5 years) by which his pensionable service exceeds 25 years.

Articles 14(2) and 18(7)

PART II SHORT SERVICE PENSION

Subject to Parts IV, VI and VII the amount of a short service pension is—

where—

A is the person’s average pensionable pay,

B is the period in years of his pensionable service up to 20 years, and

C is the period in years by which his pensionable service exceeds 20 years.

Articles 15 and 18(7)

PART III ILL-HEALTH PENSION

1.—(1) Paragraphs 2 to 5 have effect subject to article 15(5) and Parts IV, VI and VII.

(2) Where the person concerned has the role of Station Manager B or a superior role, any calculation relevant for the purposes of this Part shall be made as if his normal pension age were 60.

2.  Subject to paragraph 3, the amount of a lower tier ill-health pension, is an amount equal to that which the person concerned would have received if his employment had ceased in circumstances in which he would have been entitled to immediate payment of a deferred pension (calculated in accordance with Part V).

3.  Where the person concerned has less than 5 years’ pensionable service, the amount of the lower tier ill-health pension is that found by applying the formula—

where A is the person’s average pensionable pay; and

B is the greater of one year and the period in years of his pensionable service.

4.—(1) The amount of a person’s higher tier ill-health pension is the amount determined by deducting from the amount ascertained in accordance with sub-paragraph (2) or paragraph 5, as his circumstances require, the amount of his lower tier ill-health pension.

(2) The amount referred to in sub-paragraph (1) as to be ascertained in accordance with this sub-paragraph is—

(a) if the person concerned has at least 5 but not more than 10 years’ pensionable service, the amount found by applying the formula—

where A is the person’s average pensionable pay; and

C is the period in years of his pensionable service; or

and

where A is the person’s average pay;

C is the period in years of his pensionable service;

D is the period in years of his pensionable service up to and including 20 years; and

E is the period in years by which his pensionable service exceeds 20 years.

5.—(1) Where—

(a) if the person had continued to serve until he reached normal pension age, he would have become entitled to an ordinary or short service pension (“the notional retirement pension”); and

(b) the amount calculated in accordance with paragraph 4(2) exceeds the amount of the notional retirement pension,

the amount referred to in paragraph 4(1) as to be ascertained in accordance with this paragraph is that of the notional retirement pension.

(2) The notional retirement pension is to be calculated by reference to the person’s actual average pensionable pay.

Articles 5(4) and 24

PART IV CALCULATION OF AWARDS FOR PART-TIME SERVICE

1.  Where some or all of the person’s service, by virtue of which his pensionable service is reckonable, was part-time service, his —

(a) ordinary pension under Part I,

(b) short-service pension under Part II,

(c) ill-health pension under Part III,

(d) deferred pension under Part V,

as appropriate, shall be calculated in accordance with this Part.

2.—(1) The amount of an award listed in paragraph 1 is—

where—

A is the amount of that award calculated under the relevant Part if the average pensionable pay was the pay the person would have received had he been a whole-time member of the fire and rescue service;

B is the period in years of his pensionable service as a part-time member of the fire and rescue service;

C is the period in years of his pensionable service as a part-time member of the fire fire and rescue service, expressed as a fraction, where the numerator is the total number of contractual hours during the part-time service and the denominator is the number of contractual hours for one year of whole-time service; and

D is the period in years of his pensionable service

(2) Neither (B + C) nor D shall exceed 30 years.

Articles 16(2) and (3) and 18(7)

PART V DEFERRED PENSION

1.—(1) Paragraph 2 has effect subject to Parts IV, VIII and IX.

(2) In paragraph 2, A is the person’s average pensionable pay.

2.—(1) The amount of a deferred pension is the lesser of—

and—

where—

B is the amount of the person’s notional retirement pension,

C is the period in years of his pensionable service, and

D is the period in years of his notional service.

(2) A person’s notional retirement pension is—

where—

E is the period in years of his notional service up to 20 years, and

F is the period in years by which his notional service exceeds 20 years.

(3) A person’s notional service is the period in years that he would have been entitled to reckon as pensionable service if he had continued to serve until—

(a) he could retire with a maximum ordinary pension (disregarding article 13(2)); or

(b) he reached normal pension age,

whichever is the earlier.

Article 21(a)

PART VI REDUCTION OF PENSION AT STATE PENSIONABLE AGE

1.—(1) Where, in respect of service as a regular firefighter before 1^st April 1980, a person had paid pension contributions at a rate of 6p a week less than the appropriate percentage of his pensionable pay (“reduced contributions”), the unsecured portion of any ordinary, short service, ill-health or deferred pension payable to him shall, in respect of any period beyond state pensionable age, be reduced in accordance with this paragraph.

(2) Subject to sub-paragraphs (4) to (6), in the case of a person who elected to pay pension contributions at the lower rate under paragraph 36(3) of the Schedule to the Fire Services (Fire Officers and Firemen) Pensions Order (Northern Ireland) 1955(63), the annual rate of the reduction is that obtained by multiplying the sum ascertained from the Table below by the length in years of the period of pensionable service in respect of which he paid reduced contributions (“the relevant period”).

(3) Subject to sub-paragraph (4), in any other case the annual rate of the reduction is that obtained by multiplying £l.70 by the length in years of the relevant period.

(4) The annual rate of reduction of a pension under this paragraph shall not in any case exceed £51.

2.—(1) This paragraph applies in the case of a person in receipt of an ordinary, short service, ill-health or deferred pension who has a period of former service, that is to say service or employment otherwise than as a regular firefighter—

(a) in respect of which he was subject to superannuation arrangements (“the relevant arrangements”); and

(b) by reason of which he is entitled to reckon pensionable service for the purposes of the pension; and

(c) the period of which includes a participating period of relevant employment (“the participating period”).

(2) Where this paragraph applies the pension shall be reduced in relation to the participating period as if—

(a) any material provision of the relevant arrangements were, with the necessary adaptations and modifications, contained in this paragraph;

(b) the pension were payable under the relevant arrangements; and

(c) any other period of service or employment by reason of which he is entitled to reckon pensionable service for the purposes of the pension were a period of non-participating employment at the end of which no payment in lieu of contributions falls to be made.

(3) A material provision of the relevant arrangements is one—

(a) which was in operation when the person left the former service; and

(b) the effect of which is that pensions payable under the arrangements are to be reduced in connection with the operation of the National Insurance Act 1959(64) or of any provision of the National Insurance Act (Northern Ireland) 1966(65) relating to graduated contributions or graduated retirement benefit.

(4) The Board, in determining any question arising under sub-paragraphs (1) to (3) relating to a particular service or employment, shall be entitled to treat as conclusive any relevant certificate issued, with the agreement of the person concerned, by his employer in that service or employment.

(5) Where for the purposes of the relevant arrangements the person was entitled to reckon service by reason of some previous service or employment, that previous service or employment shall be treated for the purposes of this paragraph as if it were part of the former service.

3.—(1) Where a person is in receipt of an ordinary, short service or ill-health pension for the purposes of which he is entitled to reckon pensionable service by virtue of a period of employment as a regular firefighter which is a participating period of relevant employment (“the participating period”), the unsecured portion of the pension shall, in respect of any period beyond state pensionable age, be reduced in accordance with this paragraph.

(2) The annual rate of the reduction is that of the graduated retirement benefit which would, on the assumption that the person retired from regular employment on attaining state pensionable age, be payable to him in return for a payment in lieu of contributions in respect of the whole of the participating period, whether or not such a payment was in fact made.

Articles 21(a) and 43(4)

PART VII REDUCTION OF PENSION RELATED TO UP-RATING OF WIDOW’S PENSION

1.  In this Part “pension” means an ordinary, short service, ill-health or deferred pension and “regular service” means service as a regular firefighter.

2.—(1) Subject to sub-paragraph (2), this paragraph applies in the case of a man entitled to reckon pensionable service otherwise than—

(a) by reason of regular service after 31st March 1972; or

(b) by reason of regular service before lst April 1972, in respect of which he has paid pension contributions at a rate related to 6% of his pensionable pay, or

(c) by virtue of article 53 (receipt of transfer value).

(2) Where the man was a regular firefighter to whom Article 53 or 54 of the 1973 Scheme applied (that is to say, where on lst October 1973 either he was in regular service or, having retired after 31st March 1972, he was entitled to a pension) and he last paid pension contributions before lst April 1972 at a rate related to 5% of his pensionable pay, this paragraph shall not apply unless—

(a) he elected or agreed, under Article 53(2)(b) or (4)(a) or 54(2)(b) of the 1973 Scheme, that his pension be reduced; or

(b) pensionable service became reckonable by him after 1st April 2006 by virtue of article 49 (previous service reckonable on payment).

(3) Where this paragraph applies the man’s pension shall be reduced by the percentage specified in the second column of the Table in paragraph 5 opposite the number of completed years of relevant pensionable service he is entitled to reckon other than pensionable service falling within either or both of the following sub-paragraphs, namely—

(a) pensionable service reckonable as mentioned in sub-paragraph (1); and

(b) where (subject to articles 49(5) and 50(2)) he elected under Article 52(3) or 53(3) of the 1973 Scheme to pay further contributions or to make further payment by way of a lump sum, pensionable service reckonable by him immediately before lst October 1973 otherwise than by reason of regular service after 31st March 1972.

3.—(1) Subject to sub-paragraph (2), this paragraph applies in the case of man entitled to reckon pensionable service otherwise than—

(a) by reason of regular service after 31st March 1972; or

(b) by virtue of article 53.

(2) Where the man was a regular firefighter to whom Article 53 or 54 of the 1973 Scheme applied, this paragraph shall not apply unless—

(a) he elected or agreed, under articles 49(3)(b)or 49(4)(b) or Article 54(3)(b) of the 1973 Scheme, that his pension be reduced; or

(b) pensionable service became reckonable by him after 31st March 2006 by virtue of article 49.

(3) Where this paragraph applies, the man’s pension shall be reduced by the percentage specified in the third column of the Table in paragraph 5 opposite the number of completed years of pensionable service he is entitled to reckon other than pensionable service falling within either or both of the following sub-paragraphs, namely—

(a) pensionable service reckonable as mentioned in sub-paragraph (1); and

(b) where (subject to articles 49(5) and 50(2)) he elected under Article 52(2) or 53(2) of the 1973 Scheme to pay additional contributions or to make an additional payment by way of a lump sum, pensionable service reckonable by him immediately before lst October 1973 otherwise than by reason of regular service after 31st March 1972.

4.  In calculating the amount of a reduction in a pension under paragraph 2 or 3 no account shall be taken of any reduction in the amount of the pension under one or the other of those paragraphs or under article 18 (commutation) or 20 (allocation) or Part VI.

5.  The following Table is the Table referred to in paragraphs 2 and 3.

6.—(1) Where a man entitled to an ordinary pension was, immediately before he retired, paying additional or further contributions in pursuance of an election under Article 52(2) or (3) of the 1973 Scheme, the annual amount of the ordinary pension shall, for the appropriate period, be reduced by the annual amount of those contributions immediately before his retirement, calculated by reference to his pensionable pay at that time.

(2) The appropriate period is that for which the contributions would have remained payable had the man not retired.

(3) No account shall be taken of any reduction under this paragraph for the purpose of calculating any other reduction in the pension under this Scheme.