Citation commencement and effect

1.—(1) This Order may be cited as the New Firefighter’s Pension Scheme Order (Northern Ireland) 2007.

2.—(1) This Order shall come into operation on 30th March 2007, but shall have effect from 6th April 2006.

New pension scheme for firefighters in Northern Ireland

3.  The New Firefighters’ Pension Scheme (Northern Ireland), set out in the Annex, which makes provision for the payment of pensions and lump sums to and in respect of persons who are or have been employed by the Board of the Northern Ireland Fire and Rescue Service (“the Board”) as firefighters (including persons who die while so employed), shall have effect.

2007 scheme ceasing to have effect, with savings

4.—(1) Subject to paragraphs (2) and (3), the Firefighters’ Pension Scheme set out in the Annex to the Firefighter’s Pension Scheme Order 2007(4) (“the 2007 scheme”) shall not have effect in relation to a person who takes up employment with the Board on or after 6th April 2006.

(2) Paragraph (1) shall not apply to a person who—

(a) transfers to the employment of the Board from employment with a fire and rescue authority in England, Scotland or Wales; and

(b) immediately before 6th April 2006, was a member of the firefighters’ pension scheme established by the authority from whose employment he transfers.

(3) Where at any time in the period beginning on 6th April 2006 and ending on the date on which this Order comes into operation, a person becomes a member of the 2007 scheme on taking up employment with the Board—

(a) on the date on which this Order comes into operation—

(i) the 2007 scheme shall cease to have effect in relation to him, subject to the provisions set out in Schedule 3 (transitional arrangements); and

(ii) the provisions of the New Firefighters’ Pension Scheme (Northern Ireland) shall have effect in relation to him; and

(b) pensionable service that was reckonable service for the purposes of the 2007 scheme shall be treated as pensionable service reckonable under the New Firefighters’ Pension Scheme (Northern Ireland).

(4) The 2007 scheme shall continue to have effect in relation to a person who, immediately before 6th April 2006, was a member of it or was entitled to, or in receipt, of an award paid under it.

Continuation of schemes for retained firefighters

5.—(1) Where, immediately before the date on which this Order comes into operation, the Board maintains a scheme for the payment of pensions to and in respect of retained firefighters (“the retained scheme”).

(2) Subject to paragraph (3), the Board may continue to maintain the retained scheme on and after the date on which this Order comes into operation, for the benefit of persons who were members of that scheme before 6th April 2006, as if it were a scheme established under the Fire and Rescue Services (Northern Ireland) Order 2006.

(3) The Board must not—

(a) in respect of a retained firefighter who becomes a member of the New Firefighters’ Pension Scheme (Northern Ireland), make any contribution to the retained scheme on or after the date on which the firefighter’s membership of that Scheme commences; or

(b) use its Firefighters’ Pension Fund(5) for the making of employer’s contributions to the scheme.

(4) In paragraph (1) “retained firefighter” means a person employed by the Board—

(a) as a firefighter, but not as a regular firefighter;

(b) on terms under which he is, or may be, required to engage in firefighting or, without a break in continuity of such employment, may be required to perform other duties appropriate to his role as a firefighter (whether instead of, or in addition to, engaging in fire-fighting);

(c) otherwise than in a temporary capacity;

(d) who is obliged to attend at such times as the officer in charge considers necessary, and in accordance with the orders that he receives; and

(e) who is paid for the performance of his duties.

ANNEX THE NEW FIREFIGHTERS’ PENSION SCHEME (NORTHERN IRELAND)

PART 1 CITATION AND INTERPRETATION

Citation

1.  This Scheme may be cited as the New Firefighters’ Pension Scheme (Northern Ireland).

Interpretation

2.—(1) In this Scheme—

“the 2007 Scheme” means the Firefighters’ Pension Scheme 2007(6);

“the 1993 Act” means the Pension Schemes (Northern Ireland) Act 1993(7);

“the 1999 Act” means the Welfare Reform and Pensions Act 1999(8);

“the 1999 Order” means the Welfare Reform and Pensions Order (Northern Ireland) 1999(9);

“adoption leave” means leave under Article 107A of the Employment Rights (Northern Ireland) Order 1996(10); and “ordinary adoption leave” and “additional adoption leave” shall be construed accordingly;

“amount”, in relation to a pension, means the annual amount of the pension;

“award” means a pension or lump sum under this Scheme, or the refund of pension contributions;

“Board-initiated early retirement” means retirement before normal retirement age under article 16;

“cash equivalent” and “part-cash equivalent” have the respective meanings given by sections 90 and 94(1) of the 1993 Act;

“child”, in relation to a scheme member, means—

“Compensation Scheme” means the Firefighters’ Compensation Scheme (Northern Ireland) out in Schedule 1 to the Firefighters’ Compensation Order (Northern Ireland)(11)

“contracted–out”, in relation to an employment or scheme, has the same meaning as in section 8 of Chapter 1 of Part III of the 1993 Act;

“contributions equivalent premium” has the meaning given by section 51(2) of the 1993 Act and 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;

“contributions election” means an election under article 8(1) not to make pension contributions;

“deferred member” has the meaning given by article 4(3);

“disabled” and “disablement” have the meanings given by article 3;

“eligibility condition” means any of the conditions set out in article 5(1);

“final pensionable pay” shall be construed in accordance with article 62;

“firefighter member” has the meaning given by article 4(1);

“guaranteed minimum” is the amount determined for the purposes of sections 9 to 13 of the 1993 Act, and “guaranteed minimum pension” has the same meaning as in that Act; 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 as that minimum at that time;

“higher tier ill–health pension” has the meaning given by article 12(3);

“ill-health retirement” means retirement under article 12;

“independent qualified medical practitioner” means a medical practitioner holding a diploma in occupational medicine or an equivalent or higher qualification issued by a competent authority in an EEA State, or being an Associate, a Member or a Fellow of the Faculty of Occupational Medicine(12) or an equivalent institution of an EEA State; and for the purposes of this definition “a competent authority” has the meaning given by the General and Specialist Medical Practice (Education, Training and Qualifications) Order 2003(13);

“injury” means any injury or disease, whether of body or mind;

“lower tier ill-health pension” has the meaning given by article 12(2);

“maternity leave” means leave under Article 103 of the Employment Rights (Northern Ireland) Order 1996; and “ordinary maternity leave” and “additional maternity leave” shall be construed accordingly;

“member-initiated early retirement” means retirement before normal retirement age under article 15;

“nominated partner” has the meaning given by article 4(6);

“normal benefit age” is 60;

“normal retirement age” is 65;

“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave (Northern Ireland) Regulations 2002(14);

“pension”, unless a contrary intention appears, means a pension under this Scheme;

“pensionable pay” shall be construed in accordance with article 61;

“pensionable retained or volunteer service”, in relation to a retained or volunteer firefighter and any period, means the same proportion of whole-time service as that which has actual pensionable pay for that period bears to his reference pay for that period;

“pensionable service” shall be construed in accordance with articles 56 to 59;

“pension credit” means a credit under Article 26(1)(b) of the 1999 Order or section 29(1)(b) of the 1999 Act;

“pension credit benefit” has the meaning given by section 97B of the 1993 Act(15);

“pension credit member” has the meaning given by Article 121(1) of the Pensions (Northern Ireland) Order 1995(16);

“pension credit rights” has the meaning given by section 97B of the 1999 Act;

“pension debit” means a debit under Article 26(1)(a) of the 1999 Order or section 29(1)(a) of the 1999 Act;

“pension debit member” means a person whose benefits or future benefits under this Scheme have been reduced under Article 28 of the 1999 Order or section 31 of the 1999 Act;

“pensioner”, except in the definition of “pensioner member”, means a person who is in receipt of a pension;

“pensioner member” has the meaning given by article 4(4);

“pension sharing order” means an order or provision mentioned in Article 25(1) of the 1999 Order or section 28(1) of the 1999 Act;

“personal pension scheme” has the meaning given by section 1 of the 1993 Act;

“qualifying service” has the meaning given by article 55;

“reference pay”, in relation to the pay of a retained or volunteer firefighter over any period or 12 consecutive months, means the whole-time equivalent pensionable pay over that period of a regular firefighter employed in a similar role and with equivalent qualifying service;

“regular employment” means employment for at least 30 hours a week on average over a period of not less than 12 consecutive months beginning with the date on which the issue of the person’s capacity for employment arises;

“regular firefighter” means a person employed (whether whole-time or part-time) by the Board—

“retained firefighter” and “volunteer firefighter” mean a person employed by the Board—

and “retained or volunteer firefighter” shall be construed accordingly;

“role”, in relation to a firefighter, except in article 4(1), means the role in which he is for the time being employed, being a role set out in “Fire and Rescue Services Rolemaps” issued by the National Joint Council for Local Authority Fire and Rescue Services in August 2005(17);

“state pensionable age” means pensionable age as determined in accordance with the articles in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995(18)

“survivor’s pension” means a pension under article 23; and

“transfer value payment” means a payment to another pension scheme or arrangement in respect of rights to benefits that have accrued to, or in respect of, a member under this Scheme.

(2) Where this Scheme requires anything to be done within a specified period after or from a specified day or event, the period begins immediately after the specified day or, as the case may be, the day on which the specified event occurs.

Disablement

3.—(1) References in this Scheme to a person’s being permanently disabled are references to his being disabled at the time when the question arises for decision and to his disablement being at that time likely to be permanent.

(2) Disablement—

(a) in relation to a firefighter member, means such incapacity, occasioned by infirmity of mind or body, as makes him unable to perform any duties of the role in which he was last employed;

(b) in relation to a child, means such incapacity, occasioned by infirmity of mind or body, as makes him unable to earn a living.

(3) In determining whether a person’s disablement is permanent, the Board shall have regard—

(a) in every case, to whether the disablement will continue until the person’s normal retirement age; and

(b) in relation to a person who has taken a deferred pension, to whether the disablement will continue until his normal benefit age.

(4) Where—

(a) a person has left the Scheme with deferred entitlement to benefits before becoming disabled; and

(b) the date on which he becomes disabled cannot be ascertained,

the date shall be taken to be that on which the claim that he is disabled is first made known to the Board.

PART 2 SCHEME MEMBERSHIP, CESSATION AND RETIREMENT

Scheme membership

4.—(1) Subject to paragraph (2), a person of any of the following descriptions is a firefighter member of this Scheme—

(a) a person who, on or after 6th April 2006, takes up employment with the Board as a firefighter, and whose role on taking up that employment includes—

(i) resolving operational incidents; or

(ii) leading and supporting others in the resolution of operational incidents; or

(b) a person who—

(i) having taken up employment as a firefighter before 6th April 2006;

(ii) having continued in such employment until the date of his election; and

(iii) having been a member of the 2007 Scheme,

elects to become a member of this Scheme; and

(c) a person to whom article 4(3) of the Firefighters’ Pension Scheme (Northern Ireland) Order 2007 refers (persons taking up employment on or after 6th April 2006 and before that Order comes into operation).

(2) A person may not be a firefighter member of this Scheme if he makes a contributions election (but he may again become a firefighter member by virtue of article 9(3).

(3) A person is a deferred member of this Scheme if he is entitled to a deferred pension under article 13.

(4) A person is a pensioner member of the Scheme if he is in receipt of a pension or any other benefits under the Scheme in respect of his pensionable service or by any reason of service credited to the Scheme under Part 12.

(5) A person is a dependant member of this Scheme if he is—

(a) the spouse or civil partner of a deceased firefighter member;

(b) the nominated partner of a deceased firefighter member;

(c) a pension credit member in relation to a firefighter member;

(d) the child of a person who is a member of the Scheme by virtue of sub-paragraph (a) or (b), whose dependency on that person satisfies the conditions specified in paragraph 15(2) and (3) of Schedule 28 to the Finance Act 2004; or

(e) is in receipt of a portion of the firefighter’s pension allocated under article 21.

(6) For the purposes of paragraph (5), a firefighter may, subject to paragraph (8), nominate a person (“a nominated partner”) who—

(a) has been living with the firefighter member, otherwise than as his spouse or civil partner, in a long-term relationship; and

(b) at the date on which the question of the person’s status in relation to the firefighter member falls to be considered—

(i) is not the spouse or civil partner of any other person;

(ii) is registered with the scheme administrator as the firefighter member’s nominated partner; and

(iii) is financially dependent on the firefighter member or is, with the firefighter member, in a state of mutual financial dependency.

(7) In paragraph (6)—

(a) “long-term relationship” means a relationship that has continued, to the exclusion of any other relationship, for the period of two years ending with the date on which the question of the person’s status in relation to the firefighter member falls to be considered, or such shorter period as the Board may in any particular case think fit; and

(b) “scheme administrator” has the meaning given by section 270 of the Finance Act 2004(19).

(8) A firefighter member may not make a nomination for the purposes of this Scheme if he is prohibited by law from marrying or, as the case may be, becoming the civil partner of the person he wishes to nominate.

(9) A nomination ceases to have effect if the firefighter member or the person nominated marries or enters into a civil partnership (whether with each other or with another person).

Eligibility conditions

5.—(1) A firefighter member is eligible for a pension under this Scheme if—

(a) he has at least three months’ qualifying service; or

(b) he transfers into the Scheme with personal pension rights which qualify him for benefits under the Scheme; or

(c) he reaches normal retirement age.

Normal retirement age and normal benefit age

6.—(1) The normal retirement age of firefighter members is 60.

(2) The normal benefit age of firefighter members is 65.

Last day of membership

7.—(1) Subject to paragraph (2), where a firefighter member leaves the Scheme his last day of membership shall be taken to be—

(a) where he leaves on retirement at normal retirement age, his last day of service; and

(b) in any other case, the last day on which he pays contributions.

(2) Where a firefighter member is on unpaid absence or absent without permission on the day on which he leaves the Scheme, his last day of membership shall be taken to be such date as may be agreed with the Board.

Election not to make pension contributions

8.—(1) A firefighter member may at any time, by giving notice in writing to the Board, elect to make no further pension contributions (referred to in this Scheme as a “contributions election”).

(2) Subject to paragraph (3)—

(a) a contributions election takes effect on the day on which begins the first pay period falling after the date on which the notice is received; and

(b) the membership of the Scheme of a firefighter member making a contributions election ceases on the day on which the election takes effect.

(3) A person who makes a contributions election within three months of joining the Scheme shall be treated as if he had never been a member of it.

(4) A person whose membership of the Scheme ceases as mentioned in paragraph (2)(b) remains entitled to any deferred benefits accrued while he was a member.

Rejoining the Scheme

9.—(1) Subject to paragraphs (2) and (3), a person who has made a contributions election may cancel it by giving written notice to the Board.

(2) Paragraph (1) does not apply where the person—

(a) is entitled to reckon 40 or more years of pensionable service for the purposes of the Scheme; or

(b) has previously given notice under this article, unless the Board have declined to accept it.

(c) The Board may resolve that a person’s election may not be cancelled unless he has undergone a medical examination, at his own expense, and satisfied it as to his good health.

(3) Where a contributions election is cancelled—

(a) the person shall resume the making of pension contributions; and

(b) shall again be a firefighter member of the Scheme,

with effect from the first day on which begins the pay period falling after the date on which the notice under paragraph (1) is received.

Scheme Cessation

10.  This Scheme ceases to apply on the day on which a Scheme is brought into operation under paragraph 6(2)(b) of Schedule 1 to the Fire and Rescue Services (Northern Ireland) Order 2006.

PART 3 PERSONAL AWARDS

Ordinary pension

11.—(1) Subject to paragraph (2), this article applies to a person who satisfies an eligibility condition and retires, having reached normal retirement age, or state pensionable age.

(2) This article does not apply to a firefighter member whose notice of retirement states that he is retiring for the purpose of taking up employment with a fire and rescue service authority in England, Scotland or Wales.

(3) A person to whom this article applies becomes entitled on retiring to an ordinary pension calculated, subject to paragraph (4), by multiplying his pensionable service by his final pensionable pay and dividing the resultant amount by 60.

(4) Where a person to whom this article applies becomes entitled on retiring to a pension in respect of service as a retained or volunteer firefighter, his ordinary pension shall be calculated by multiplying his final pensionable pay by his pensionable retained or voluntary service and dividing the resultant amount by 60.

(5) Where a firefighter member is entitled to more than one ordinary pension, those pensions shall not be aggregated unless article 17(6) applies.

Award on ill-health retirement

12.—(1) — This article applies to a firefighter member who leaves his employment by reason of permanent disablement(20) (referred to in this Scheme as “ill–health retirement”).

(2) Every firefighter member to whom this article applies and who satisfies an eligibility condition is entitled, on retiring, to a lower tier ill–health pension calculated in accordance with paragraph 1 of Schedule 1.

(3) A firefighter member—

(a) who is entitled to a lower tier ill–health pension;

(b) who has at least five years of qualifying service; and

(c) in respect of whom a qualified medical practitioner, has expressed the opinion, obtained in accordance with article 46(2), that he is permanently disabled from undertaking regular employment,

is also entitled, on retiring, to a higher tier ill–health pension calculated in accordance with paragraph 2 or 3 of Schedule 1, as his circumstances require.

Deferred pension

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

(a) satisfies an eligibility condition; and

(b) before reaching normal retirement age—

(i) resigns or is dismissed from the fire and rescue service; or

(ii) makes a contributions election.

(2) A person to whom this article applies is entitled to a deferred pension which, subject to paragraph (4) and article 15 becomes payable from normal benefit age.

(3) A deferred pension shall be calculated by multiplying the person’s pensionable service by his final pensionable pay and dividing the resultant amount by 60.

(4) Subject to article 53 (withdrawal of early payment of deferred pension), where—

(a) a person to whom this article applies gives to the Board notice in writing requesting early payment of his deferred pension; and

(b) the Board is satisfied, having obtained the opinion of a qualified medical practitioner in accordance with article 46, that the person is permanently disabled from undertaking regular employment,

the Board shall pay the deferred pension from the date of the person’s disablement or, if that date cannot be ascertained, the date of his request for early payment.

(5) Where a deferred pension is paid early in accordance with paragraph (4), it shall be subject to review under article 49(2) (review of ill-health pension).

(6) A person who cancels his deferred pension under article 14 ceases to be entitled to it.

Cancellation of deferred pension

14.—(1) Where—

(a) a deferred pension awarded under article 13 is not being paid; and

(b) the person entitled to it is again employed by the Board in a role which entitles him to rejoin this Scheme; and

(c) he rejoins the Scheme,

he may, at any time before leaving the Board’s employment, by notice in writing given to the Board, instruct the Board to cancel his deferred pension.

(2) Where the Board cancels a deferred pension, it shall add to the pensionable service used for the calculation of the pension to which the person becomes entitled on leaving the service the pensionable service used for the calculation of the deferred pension.

(3) Where a person is entitled to a deferred pension from a fire and rescue authority in England, Scotland or Wales (“the first authority”), and he is subsequently employed by the Board, he must by written notice to the first authority instruct it—

(a) to cancel the deferred pension; and

(b) to make arrangements with the Board for the transfer of his pensionable service in accordance with Part 12.

Pension on member-initiated early retirement

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

(a) satisfies an eligibility condition; and

(b) before reaching normal benefit age is awarded a deferred pension.

(2) A person to whom this article applies may, on or after his 55th birthday, by notice in writing to the Board request early payment of his deferred pension.

(3) The Board may refuse a request under paragraph (2) if the rate of the pension (after the actuarial reduction mentioned in paragraph (4)(b) or, as the case may be, paragraph (5)(b)), is likely to be less than the guaranteed minimum pension that would be payable from state pensionable age.

(4) A deferred pension paid before normal benefit age to a firefighter member whose service is as a regular firefighter shall be calculated by—

(a) multiplying his pensionable service by his final pensionable pay and dividing the resultant amount by 60; and

(b) applying to the amount ascertained in accordance with sub-paragraph (a) the appropriate actuarial reduction factor notified by the Scheme Actuary.

(5) A deferred pension paid before normal benefit age to a firefighter member whose service is as a retained or volunteer firefighter shall be calculated by—

(a) multiplying his pensionable retained service by his final pensionable pay as in article 62(6) and dividing the resultant amount by 60; and

(b) applying to the amount ascertained in accordance with sub-paragraph (a) the appropriate actuarial reduction factor notified by the Scheme Actuary.

Pension on Board-initiated early retirement

16.—(1) The Board may, having regard to—

(a) the economical, effective and efficient management of its functions; and

(b) the costs likely to be incurred in the particular case,

determine that a firefighter member who is aged 55 but under normal retirement age should be retired from the service.

(2) The pension of a person in respect of whom a determination is made under paragraph (1) shall be calculated in accordance with article 11.

Entitlement to two pensions

17.—(1) Subject to paragraph (7), a firefighter member who—

(a)(i) satisfies an eligibility condition; and

(b) on taking up a different role within the fire and rescue service or becoming entitled to a different rate of pay in his existing role, suffers a reduction in the amount of his pensionable pay such that the amount to be taken into account in the calculation of the pension to which he will be entitled at normal retirement age is less than it would otherwise have been,

is entitled to two pensions.

(2) The pensions shall be calculated as mentioned in paragraphs (3) and (4) and shall become payable as mentioned in paragraph (5).

(3) The amount of the first pension is that found by multiplying the member’s pensionable service up to (but not including) the day on which paragraph (1) first applies to him by the final pensionable pay to which he would have been entitled had he retired on that day, and dividing the resultant amount by 60.

(4) The amount of the second pension is that found by multiplying the member’s pensionable service on and after the day on which paragraph (1) first applies to him by the final pensionable pay to which he is entitled on that day, and dividing the resultant amount by 60.

(5) Subject to paragraph (6), the pensions become payable on the date on which a pension would have become payable to the member in whichever of the circumstances referred to in articles 11, 12, 13, 15 and 16 applies in his case.

(6) A member who is entitled to two pensions under this article may, by notice in writing to the Board, before leaving that employment, instruct the Board to make a single award which shall calculated in accordance with paragraph (7).

(7) The single award under paragraph (6) shall be calculated by—

(a) multiplying the aggregate of the periods of pensionable service used for the purposes of paragraphs (3) and (4) by the final pensionable pay used for the purposes of paragraph (4), and

(b) dividing the resultant amount by 60.

(8) If the member makes a contributions election, he shall be entitled to a single pension, calculated as mentioned in paragraph (3); and that pension shall be treated for the purposes of article 13(4) to (6) and article 14 as if it were a deferred pension to which he was entitled under article 13.

Refund of aggregate pension contributions

18.—(1) A firefighter member who—

(a) leaves the Board’s employment without satisfying an eligibility condition; or

(b) remains in the that employment but makes a contributions election before he has accrued three months’ qualifying service,

is entitled to a refund of his aggregate pension contributions less—

(i) the amount of any tax and national insurance premium required to be deducted; and

(ii) such part of any contributions equivalent premium paid in respect of the member as is permitted by or under section 57 of the 1993 Act.

(2) In paragraph (1), “aggregate pension contributions” means all of the payments made by the member to the Board by way of pension contributions.

Commutation: general

19.—(1) Subject to paragraphs (3) and (4), a person entitled or prospectively entitled to any pension under this Part may commute a portion of it (“the commuted portion”) for a lump sum.

(2) The lump sum shall be calculated by multiplying by 12 the amount of the person’s pension represented by the commuted portion at the date of retirement.

(3) A person taking ill–health retirement may not commute any portion of a higher tier ill–health pension.

(4) The commuted portion must not exceed—

(a) in a case to which paragraph (4) or (5) of article 15 applies, one quarter of the amount of the pension calculated in accordance with that paragraph;

(b) in any other case, one quarter of the amount to which he is entitled by way of pension.

(5) In order to commute a portion of a pension a person must—

(a) not earlier than four months before the date on which he intends to retire; but

(b) not later than the day before the pension comes into payment,

give the Board written notice of commutation specifying the commuted portion.

(6) Notice of commutation takes effect on the day of the person’s retirement (“the effective date”).

(7) The Board shall—

(a) from the effective date, reduce the person’s pension by the commuted portion; and

(b) as soon as reasonably practicable after the effective date, pay the lump sum.

(8) In relation to a deferred pension, a pension on member-initiated early retirement, a pension on Board-initiated early retirement, or either or both of the two pensions referred to in article 17, paragraphs (6) and (7) have effect as if references to the day of retirement and the effective date were references to the date on which the pension comes into payment.

(9) For the purposes of this article—

(a) the pension of a pension debit member shall be taken to be the amount of the pension after reduction in accordance with article 22; and

(b) no account shall be taken of any increase under article 2 or 3 of Part 7 of the Compensation Scheme in an award to a serviceman.

Commutation: small pensions

20.—(1) Where the amount of any pension payable under this Part to a member who has attained state pensionable age, together with any pension to which he is entitled under article 37 and any increase under the Pensions (Increase) Act (Northern Ireland) 1971(21), does not exceed the commutation limit specified for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (lump sum rule)(22), the Board may commute the pension for a lump sum.

(2) The amount of a lump sum under this article is the actuarial equivalent of the pension, calculated from tables prepared by the Scheme Actuary.

(3) (a) Where a member is entitled to more than one pension under this Part, the pensions shall be treated as one for the purposes of this article.

(4) On the day on which a pension is commuted under this article, all other entitlements of the member under this Part are extinguished.

Allocation of pension

21.—(1) A firefighter member may, in accordance with paragraphs (6) and (7), but subject to—

(a) section 214 of the Finance Act 2004 and paragraphs (4) and (5); and

(b) where he is over 74, to paragraphs 16A to 16C of Schedule 28 to the Finance Act 2004(23),

allocate up to one–third of any pension to which he is entitled or prospectively entitled under this Part.

(2) The persons to whom a portion of a pension may be allocated are—

(a) the firefighter member’s spouse, civil partner or nominated partner; or

(b) with the consent of the Board, any other person who is substantially dependent on the firefighter member.

(3) The Board may withhold consent under paragraph (2)(b) if it is not satisfied that the person is substantially dependent on the firefighter member.

(4) For the purposes of paragraph (1), the Board shall disregard any increase under article 2 or 3 of Part 7 of the Compensation Scheme (awards to, or on death of, servicemen) in—

(a) awards to—

(i) reservists; or

(ii) reservists who do not resume service with the Board; and

(b) awards paid under the Compensation Scheme.

(5) Where more than one portion of a particular pension is allocated under this article, the total of the allocated portions of that pension must not exceed the portion of that pension retained by the firefighter member.

(6) The firefighter member must—

(a) satisfy the Board that he is in good health and has a normal life expectancy; and

(b) give the Board written notice of allocation specifying—

(i) the portion;

(ii) the name and address of the intended beneficiary; and

(iii) the sex of the beneficiary.

(7) The notice of allocation, which may be sent by post, must be given—

(a) if the pension is a deferred pension, not earlier than two months before the pension comes into payment;

(b) in any other case, not earlier than two months before the firefighter member’s intended retirement.

(8) Where the Board is satisfied that—

(a) the firefighter member has complied with paragraphs (6) and (7); and

(b) the allocation proposed by him can be made without contravening section 214 of the Finance Act or, as the case may be, paragraphs 16A to 16C of Schedule 28 to that Act,

it shall, as soon as reasonably practicable after receiving the member’s notice of allocation, notify him in writing that it has accepted his proposal.

(9) Where a proposal is accepted, the notice of allocation only takes effect—

(a) if it refers to a deferred pension, where the pension comes into payment within two months of the date of receipt of the notice;

(b) in any other case, where the firefighter member entitled to the pension retires within two months of the date of receipt of the notice.

(10) If a notice of allocation takes effect, it does so on the day on which the pension comes into payment or, as the case may be, on the day on which the member retires.

(11) Where—

(a) a notice of allocation has taken effect;

(b) the pension to which it relates has become payable; and

(c) the beneficiary survives the pensioner,

the Board shall, from the date of the pensioner’s death, pay the beneficiary a pension which is the actuarial equivalent of the allocated portion.

(12) Where more than one portion has been allocated under this article, a separate calculation shall be made under paragraph (13) in respect of each allocation.

(13) The actuarial equivalent of an allocated portion shall be calculated in accordance with tables prepared by the Scheme Actuary and in force when the notice of allocation takes effect; and in the calculation shall be made by reference to the ages of the pensioner and the beneficiary at the date on which the notice of allocation was given.

(14) Where—

(a) a notice of allocation has taken effect; and

(b) the beneficiary pre–deceases the pensioner,

the Board shall pay to the pensioner (distinguishing it from any other pension payable to him) the portion of pension that he had allocated (“the failed allocation pension”).

(15) Where paragraph (14) applies, the pensioner is not entitled to recover from the Board the amount of any deduction made in respect of the failed allocation pension.

Pension debit members

22.  Where a pension debit member is entitled to an award under this Part—

(a) the award shall be calculated by reference to the member’s rights under this Scheme as reduced by virtue of Article 28 of the 1999 Order and in accordance with such tables and other guidance as are provided for the purpose by the Scheme Actuary; and

(b) articles 19 to 21 have effect accordingly.

PART 4 SURVIVORS’ PENSIONS

CHAPTER 1 SPOUSES, CIVIL PARTNERS AND NOMINATED PARTNERS

Pensions for surviving spouses, civil partners and nominated partners

23.—(1) Subject to the following provisions of this article, a pension is payable on the death of—

(a) a firefighter member who satisfies an eligibility condition and dies while employed by the Board; or

(b) a former firefighter member who—

(i) has been awarded a deferred pension under article 13 which has not come into payment;

(ii) is in receipt of a deferred pension under that article; or

(iii) is in receipt of a pension under any of articles 11, 12, 14, 15 and 16,

to the deceased’s spouse, civil partner or nominated partner for the remainder of their life (a “survivor’s pension”).

(2) Subject to paragraph (4), a survivor’s pension is not payable if the deceased’s spouse, civil partner or nominated partner (as the case may be) is convicted of the murder of the deceased.

(3) Subject to paragraph (5), where the deceased’s spouse, civil partner or nominated partner (as the case may be) is convicted of the manslaughter of the deceased, the Board may, as it thinks fit, withhold the survivor’s pension—

(a) in whole or in part; and

(b) permanently or temporarily.

(4) Where a conviction of the description mentioned in paragraph (2) is quashed on appeal—

(a) a survivor’s pension shall be payable from the day after that on which the deceased died; and

(b) the Board shall, as soon as reasonably practicable after the conviction is quashed, pay the arrears of pension accrued.

(5) Where—

(a) a conviction of the description mentioned in paragraph (3) is quashed on appeal, and

(b) the Board has withheld any part of the survivor’s pension,

the Board’s decision under paragraph (3) shall be treated as revoked and it shall, as soon as reasonably practicable after the conviction is quashed, pay the arrears of pension accrued from the day after that on which the deceased died.

(6) Nothing in paragraph (4) or (5) shall affect the application of paragraph (2) or (3) if the person whose conviction is quashed is subsequently convicted of the murder or manslaughter of the deceased.

Amount of survivor’s pension: general

24.—(1) Subject to article 25, the amount of a survivor’s pension—

(a) in respect of a firefighter member who satisfies an eligibility condition and dies while employed by the Board, is half of the higher tier ill–health pension to which he would have been entitled under article 12(3) had he retired with the benefit of an ill–health award;

(b) in any other case, subject to paragraphs (2) and (3), is half of the pension to which the deceased was entitled.

(2) Where a portion of the deceased’s pension had been commuted under article 19, the amount of the survivor’s pension is half of the deceased’s pension after commutation.

(3) Where the deceased had taken member-initiated early retirement, the amount of the survivor’s pension is—

(a) half of the amount of the pension which the deceased would have received if there had been no actuarial reduction; or

(b) where a portion of the deceased’s pension had been commuted, the amount found by dividing by 2 the product of A and B, where—

A is the amount which the deceased would have received if there had been no actuarial reduction; and

B is the fraction which represents the uncommuted portion of A expressed as a fraction of A.

Amount of survivor’s pension: special cases

25.—(1) Subject to paragraph (2), where the person entitled to a survivor’s pension under article 23 is more than twelve years younger than the deceased on the day on which he dies, a reduction of 2.5 per cent for each year by which the survivor’s age exceeds, by more than twelve years, that of the deceased, shall be applied to the article 24 amount.

(2) Where the application of paragraph (1) would result in the payment of a survivor’s pension of less than 50 per cent of the article 24 amount, the survivor’s pension shall be 50 per cent of the article 24 amount.

(3) Where—

(a) a pension debit member satisfies an eligibility condition and dies while employed by the Board;

(b) a survivor’s pension is payable under article 23 on his death; and

(c) a pension sharing order or, in the case of a surviving civil partner, an order to similar effect, had effect on the day on which the pension debit member died,

the amount of the survivor’s pension shall be ascertained with regard to the terms of that order.

(4) In paragraphs (1) and (2), “the article 24 amount” means the amount that would have been ascertained in accordance with article 24 if that article were not subject to paragraphs (1) and (3) of this article.

(5) For the purposes of paragraph (1), a part of a year shall be treated as a whole year.

Bereavement pension: survivors

26.—(1) Subject to paragraph (2), a person entitled to a survivor’s pension under article 23 is also entitled, in respect of each of the 13 weeks following the death, to a bereavement pension of an amount equal to the difference between the weekly rate at which the survivor’s pension is paid and—

(a) if the deceased was a firefighter member when he died, the weekly rate of his pensionable pay when he died;

(b) in any other case, the weekly rate of his pension or pensions (including any increase under the Pensions (Increase) Act (Northern Ireland) 1971) when he died.

(2) No entitlement arises under paragraph (1) where—

(a) a contributions election had effect at the date of the deceased’s death; or

(b) the deceased was entitled to a deferred pension that had not come into payment.

(c) Commutation of survivor’s pension

27.—(1) A pension payable under this Chapter may, if the person entitled to it so requests, be commuted for a lump sum 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 amount of the lump sum shall be calculated in accordance with tables prepared by the Scheme Actuary and in force when the commutation takes effect.

(3) On the day on which a pension is commuted under this article, all other entitlements under this Scheme of the person entitled to the pension are extinguished to the extent that they derive from the deceased member.

CHAPTER 2 CHILDREN’S PENSIONS

Child’s pension

28.  Subject to article 29, a child is eligible for a child’s pension if he is the child of—

(a) a firefighter member who satisfies one of the eligibility conditions and dies while employed by the Board;

(b) a pensioner member who is in receipt of a pension under this Scheme when he dies; or

(c) a deferred member who is entitled to a deferred pension under this Scheme which is not in payment when he dies.

Child’s pension: limitations and duration

29.—(1) Subject to paragraphs (2) and (3), a child is not eligible if—

(a) he is 18 or older;

(b) he has ceased full-time education and is in paid employment; or

(c) he is married or has entered into a civil partnership.

(2) A child aged 18 but not more than 23 is eligible if he is in full–time education or attending a course of at least one year’s duration.

(3) A child aged 18 or more is eligible if, when the scheme member dies, he is dependent on him by reason of permanent disability.

(4) Subject to paragraph (6), a child is not eligible if he is convicted of the murder of the deceased.

(5) Subject to paragraph (7), where the child is convicted of the manslaughter of the deceased, the Board may, as it thinks fit, withhold the child’s pension—

(a) in whole or in part; and

(b) permanently or temporarily.

(6) Where a conviction of the description mentioned in paragraph (4) is quashed on appeal—

(a) a child’s pension shall be payable from the day after that on which the deceased died; and

(b) the Board shall, as soon as reasonably practical after the conviction is quashed, pay the arrears of pension accrued.

(7) Where—

(a) a conviction of the description mentioned in paragraph (5) is quashed on appeal; and

(b) the Board has withheld any part of the child’s pension,

the Board’s decision under paragraph (5) shall be treated as revoked and it shall, as soon as reasonably practical after the conviction is quashed, pay the arrears of pension accrued from the day after that on which the deceased died.

(8) Nothing in paragraph (6) or (7) shall affect the application of paragraph (4) or (5) if the child whose conviction is quashed is subsequently convicted of the murder or manslaughter of the deceased.

(9) A child’s pension ceases to be payable—

(a) unless paragraph (2) or (3) applies, on his 18th birthday or the occurrence of an event referred to in paragraph (b) or (c), whichever first occurs;

(b) where paragraph (2) applies, on his 23rd birthday or on the day on which his full–time education ceases, whichever first occurs;

(c) where paragraph (3) applies, when the Board is satisfied—

(i) that the child is no longer permanently disabled; or

(ii) that the child’s pension should not have been awarded.

(10) Unless paragraph (9)(c) applies, a pension for which a child is eligible as mentioned in paragraph (3) is payable for life.

Amount of child’s pension

30.—(1) The amount payable by way of a child’s pension under this Chapter is—

(a) where the deceased died while employed as a firefighter member by the Board and there is one eligible child, one quarter of the ill–health pension to which the member would have been entitled under article 12 had he retired with the benefit of a higher tier ill–health award on the day after that on which he died;

(b) where the deceased died while employed as a firefighter member by the Board and there is more than one eligible child, one half of the ill–health pension to which the member would have been entitled under article 12 had he retired with the benefit of a higher tier ill–health award on the day after that on which he died, divided by the number of eligible children;

(c) in any other case, subject to paragraphs (2) and (3)—

(i) if there is one eligible child, one quarter of the pension to which the deceased was entitled on the day he died (whether or not, in the case of a deferred pension, the pension had come into payment);

(ii) if there is more than one eligible child, one half of the pension to which the deceased was entitled on the day he died (whether or not, in the case of a deferred pension, the pension had come into payment) divided by the number of eligible children.

(2) Where a portion of the deceased’s pension had been commuted under article 19, the amount is—

(a) if there is one eligible child, one quarter of the uncommuted portion;

(b) if there is more than one eligible child, one half of the uncommuted portion, divided by the number of eligible children.

(3) Where the deceased had taken member-initiated early retirement, the amount is—

(a) if there is one eligible child, one quarter of the amount of the pension which the deceased would have received if there had been no actuarial reduction;

(b) if there is more than one eligible child, one half of the amount of the pension which the deceased would have received if there had been no actuarial reduction, divided by the number of eligible children;

(c) where a portion of the deceased’s pension had been commuted, and there is one eligible child, the amount found by dividing by 4 the product of A and B.

(d) where a portion of the deceased’s pension had been commuted, and there is more than one eligible child, the amount found by dividing the product of A and B by 2 and then dividing the resultant amount by the number of eligible children.

(4) In paragraph (3)(c) and (d)—

A is the amount which the deceased would have received if there had been no actuarial reduction; and

B is the fraction which represents the uncommuted portion of A expressed as a fraction of A.

Bereavement pension: children

31.—(1) Where—

(a) no person is entitled to a survivor’s pension under article 23; and

(b) a child of the deceased is eligible for a child’s pension (“eligible child”),

the Board shall, subject to paragraph (3), pay to the eligible child the amount referred to in paragraph (2), in respect of each of the 13 weeks following the deceased’s death or, if shorter, each complete week of the period beginning on the day after the deceased’s death and ending on the day on which the child’s pension ceases to be payable.

(2) The amount is equal to that which the Board would have paid under paragraph (1) of article 26 (bereavement pension: survivors) had a survivor’s pension been payable.

(3) Where there is more than one eligible child, the amount ascertained in accordance with paragraph (2) shall be divided equally between the eligible children; but—

(a) a child’s share shall cease to be paid to him as soon as his child’s pension ceases to be payable; and

(b) the share to which he would otherwise have been entitled shall be distributed equally among any remaining eligible children.

(4) Where a person in receipt of a survivor’s bereavement pension dies before the end of the period for which that pension is payable (“the 13 week period”), the Board shall, subject to paragraph (6), pay to the eligible child (if any) a bereavement pension, in respect of each complete week of whichever is the shorter of—

(a) the period beginning on the day after the survivor’s death and ending at the end of the 13 week period; and

(b) the period beginning on the day after the survivor’s death and ending on the day on which the child’s pension ceases to be payable.

(5) The amount of a bereavement pension under paragraph (4) is equal to that which the Board would have paid under paragraph (1) of article 26 had a survivor’s bereavement pension been payable for the part of the 13 week period that falls after the survivor’s death.

(6) Where there is more than one eligible child, the amount ascertained in accordance with paragraph (5) shall be divided equally between the eligible children; but—

(a) a child’s share shall cease to be paid to him as soon as his child’s pension ceases to be payable; and

(b) the share to which he would otherwise have been entitled shall be distributed equally among any remaining eligible children.

Pension for child where no survivor’s pension paid

32.—(1) Where—

(a) no person is entitled to a pension under article 23 as a survivor of the deceased; and

(b) a child of the deceased is eligible for a child’s pension under article 28,

the Board shall pay to the child, for so long as he is an eligible child, the amount that would have been paid by way of a survivor’s pension under article 24 if, in paragraph (1) of that article, the words “Subject to article 25” had been omitted.

(2) Where there is more than one eligible child, the amount referred to in paragraph (1) shall be divided equally between the eligible children; but—

(a) a child’s share shall cease to be paid as soon as his child’s pension ceases to be payable; and

(b) the share to which he would otherwise have been entitled shall be distributed equally among any remaining children.

Child’s pension in respect of pension debit member

33.  Where a pension debit member dies leaving a child, the reduction in his rights under this Scheme by virtue of Article 28 of the 1999 Order shall be disregarded for the purposes of calculating any pension payable under this Chapter.

Commutation of child’s pension

34.—(1) A pension payable under this Chapter may be commuted for a lump sum—

(a) with the consent of the child’s remaining parent or, if he has none, the child’s guardian or, if he has none, the child himself if he is over 18; and

(b) if, when commuted, 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 amount of the lump sum shall be calculated in accordance with tables prepared by the Scheme Actuary and in force when the commutation takes effect.

(3) On the day on which a pension is commuted under this article, all other entitlements of the child under this Scheme are extinguished to the extent that they derive from the deceased member.

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