Article 41

SCHEDULE 5 LUMP SUM IN LIEU OF CHILD’S ALLOWANCE

1.  The amount of the lump sum is such amount, not exceeding the permitted amount, as may be agreed between the Board and—

(a) a surviving parent or the child’s guardian; or

(b) if he has neither, the child himself.

2.  The permitted amount is the capitalised value of the amount commuted under article 41, calculated in accordance with tables prepared from time to time by the Government Actuary.

Articles 6(2), 49(1) to (4) and (7) and 50(1)

SCHEDULE 6 PENSIONABLE SERVICE AND TRANSFER VALUES

PART I PAYMENTS IN RESPECT OF PREVIOUS SERVICE

1.—(1) Subject to sub-paragraphs (2) to (4), an amount which a person undertakes to pay in accordance with this paragraph shall be paid by such regular instalments as will secure that the whole of the amount has been paid within a period of 5 years and before he reaches normal pension age; the instalments are payable to the Board which may deduct them from his pay.

(2) The person may at any time discharge his liability in whole or part by paying to the Board the whole or, as the case may be, a part of the balance then outstanding.

(3) If before he has paid the whole of the amount he—

(a) retires and does not become entitled to an award other than one under article 17 (repayment of aggregate pension contributions); or

(b) dies,

any balance then outstanding shall be treated as having been paid.

(4) If before he has paid the whole of the amount he retires and becomes entitled to an award other than one under article 17, the Board may deduct the balance then outstanding from payments of any award payable to him.

2.—(1) Subject to sub-paragraph (2), the sum referred to in article 49(3)(c) is A x B x C, where—

A is the person’s annual pensionable pay at the time when he again became a regular firefighter or if he is a part-time member of the fire and rescue service, the annual pensionable pay he would have received had he been a whole-time member,

B is the factor ascertained from the Table by reference to his age at that time, and

C is the number of complete years he was entitled to reckon as pensionable service when he retired.

(2) The sum calculated in accordance with sub-paragraph (1) shall be reduced by half of any amount which, if article 49(1) had applied and a sum had been payable under article 54 (transfer payments between fire authorities), would for the purpose of calculating that sum have constituted (C x D) in the formula set out in paragraph 2 of Part III.

Article 53(5)

PART II SERVICE RECKONABLE ON RECEIPT OF TRANSFER VALUE

1.—(1) If the previous scheme is a club scheme, the period reckonable as pensionable service is one equal to the period that would enable the Board to pay a transfer value, calculated on the cash equivalent basis, of the same amount as the sum received.

(2) A transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under section 93(1) of the Pension Schemes (Northern Ireland) Act 1993(66) for the calculation of cash equivalents.

(3) In calculating the period any sum representing interest that is included in the transfer value received is not to be taken into account.

2.—(1) Subject to paragraph 3, if the previous scheme is not a club scheme the period reckonable as pensionable service is that specified in sub-paragraph (2).

(2) The period is—

where—

A is the amount of the transfer value divided by the market level indicator for the month in which the material date occurred,

B is any amount in respect of graduated National Insurance modification notified by the scheme managers of the previous scheme,

C is 52 times the amount in respect of the person’s guaranteed minimum multiplied by the minimum pension factor,

D is 1/45th of the rate of his annual pensionable pay at the material date multiplied by the pension factor, and

E is 1/90th of the rate of his annual pensionable pay at the material date multiplied by the surviving spouse’s or civil partner’s pension factor.

(3) The market level indicator for a month is to be ascertained from tables provided by the Government Actuary by reference to—

(a) the person’s age at the material date; and

(b) the average gross redemption yield on the first working day of the month, ascertained from the FT-Actuaries Share indices published in the Financial Times newspaper, on British Government index-linked stocks redeemable after 5 years or more, assuming inflation at 5 per cent (interpolating where that yield is not an integral percentage).

(4) The amount in respect of the person’s guaranteed minimum is F + G,

where—

F is so much of his guaranteed minimum as is attributable to service before 6th April 1988, and

G is half of so much of it as is attributable to service after 5th April 1988.

(5) The material date—

(a) if the transfer value was received within 12 months after the date on which the person became a regular firefighter, is that date; and

(b) in any other case, is the date on which the transfer value was received.

(6) The factors are to be ascertained from tables provided by the Government Actuary by reference to the person’s age on the material date.

3.  If—

(a) the previous scheme is not a club scheme; and

(b) the person became a regular firefighter before lst January 1986,

the period reckonable as pensionable service is one calculated as if paragraphs 1 to 4 of Part II of Schedule 7 to the 1973 Scheme and Part III of that Schedule, as in operation on 31st March 2006, had continued in operation.

4.  In this Part—

(a) annual pensionable pay, in the case of a part-time member of the fire and rescue service, is the pay the person would have received had he been a whole-time member; and

(b) periods of reckonable pensionable service shall be treated as periods of whole-time service.

Article 54(1)

PART III TRANSFER PAYMENTS BETWEEN FIRE AUTHORITIES

1.  Subject to paragraphs 4, 5, 7 and 8, the sum payable is the total of the basic element and the spouse’s or civil partner’s element.

2.  The basic element is (A x B) - (C x D), where—

A is the annual amount of the deferred pension to which the person would have been entitled had he become entitled to one on retiring from the first fire and rescue service (“the notional pension”),

B is the pension factor,

C is any annual amount by which such a deferred pension would have been reduced at state pensionable age under paragraphs 1 to 3 of Part VI of Schedule 2, and

D is the National Insurance factor.

3.  The spouse’s or civil partner’s element is E x F, where—

E is the annual amount of the accrued pension to which a surviving spouse or civil partner would become entitled on the death of a person entitled to a deferred pension equal to the notional pension, and

F is 4 in the case of a man and 1.1 in the case of a woman.

4.—(1) If when he retired from the first fire and rescue service the person had a guaranteed minimum in relation to a pension provided by this Scheme, the sum calculated in accordance with paragraphs 1 to 3 is reduced by G x H, where—

G is 52.18 times the guaranteed minimum, and

H is the minimum pension factor.

(2) If a contributions equivalent premium has been paid in respect of the person and has not been repaid, the sum calculated in accordance with paragraphs 1 to 3 is reduced by the amount of that premium.

5.  If—

(a) the person had undertaken to make payments in accordance with paragraph 1 of Part I; and

(b) not all the instalments had been paid when he retired from the first fire and rescue service,

the sum calculated in accordance with paragraphs 1 to 3 is reduced by the actuarial equivalent of the unpaid instalments calculated, in accordance with tables provided by the Government Actuary, by reference to the amount of each instalment, the interval at which instalments were payable and the number of unpaid instalments.

6.—(1) The factors referred to in paragraphs 2 and 4 are to be ascertained from the Table by reference to the person’s age on retiring from the first fire and rescue service.

(2) In the case of a pension debit member, the sum payable is reduced in accordance with such guidance as is provided for that purpose by the Government Actuary.

7.  If payment is not made within 6 months after the person retired from the first fire and rescue service, the sum calculated in accordance with paragraphs 1 to 6 is increased by adding to it interest at 9 per cent per annum, compounded with 3-monthly rests, for the period of 3 months beginning on the date of the retirement and for each subsequent complete period of 3 months before the date of payment.

8.  In making any calculation for the purpose of this part any reduction of pensionable pay during —

(a) sick leave;

(b) stoppage by way of punishment;

(c) paid maternity, adoption and paternity leave;

(d) unpaid ordinary maternity or ordinary adoption leave;

(e) unpaid ordinary maternity leave, additional maternity leave or additional adoption leave where contributions have been paid under article 58

shall be disregarded.

Articles 51(6) and 55(11)

PART IV AMOUNT OF TRANSFER VALUE

1.  A transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under section 93(1) of the Pension Schemes (Northern Ireland) Act 1993 for the calculation of cash equivalents.

2.  Where—

(a) a transfer value is payable to the scheme managers of a club scheme or a personal pension scheme; or

(b) a transfer value is payable to the scheme managers of an approved scheme which is not a club scheme and none of the service to which it relates is service before lst October 1990,

and no right to a cash equivalent was acquired, the transfer value is to be calculated on the cash equivalent basis.

3.  Where—

(a) a transfer value is payable to the scheme managers of an approved scheme which is not a club scheme; and

(b) the service to which it relates includes service before lst October 1990; and

(c) no right to a cash equivalent was acquired,

the amount of the transfer value is the total of A and the greater of B and C, where—

A is a notional transfer value, calculated on the cash equivalent basis, in respect of the person’s service after 30th September 1990,

B is a notional transfer value, calculated on the cash equivalent basis, in respect of his service before lst October 1990, and

C is a notional transfer payment, calculated in accordance with Part III, in respect of his service before lst October 1990.

4.  Where—

(a) a transfer value is payable to the scheme managers of an approved scheme which is not a club scheme; and

(b) the service to which it relates includes service before lst October 1990, and

(c) a right to a cash equivalent was acquired,

the amount of the transfer value is D - E, where—

D is the transfer value that would have been payable if paragraph 3 had applied, and

E is the amount of the cash equivalent.

5.—(1) Where—

(a) a transfer value is payable to the scheme managers of a personal pension scheme; and

(b) a right to a part cash equivalent was acquired,

the transfer value is to be calculated on the cash equivalent basis as if the person’s service as a regular firefighter had ended on 5th April 1988.

(2) In the case of a pension debit member, the sum payable is reduced in accordance with such guidance as is provided for that purpose by the Government Actuary.

6.  In the case of a pension debit member, the sum payable is reduced by such amount as is calculated in accordance with such guidance as is provided for the purpose by the Government Actuary.