Agenda item

The Payroll and Pensions Manager presented a report that provided an overview of the current issues relating to Firefighters’ Pension Scheme, including updates on the following:-

-     Membership Statistics

-     FPS Bulletin – action arising

-     McCloud Remedy

-     McCloud Remedy – Contingent Decisions

-     Matthews Remedy – On Call Firefighters

-     Revaluation Rate Correction

-     Pension Tax Update

-     General Updates

The Pay and Pensions Manager provided an update on the McCloud Remedy. It was reported that on 1^st October 2023, all primary and secondary legislation to implement the McCloud Remedy came into force. Services had to complete several key tasks in readiness for the Remedy. An update of progress against these deliverables was provided at Appendix B of the report, along with a summary of the next group of key deliverables which need to be completed between October 2023 and March 2024.

The Government Actuary’s Department (GAD) had now released a calculator to be used for the calculation of tax relief, compensation, and interest. Although the calculator had been tested, Services were still finding issues and the inputs required were complex. In addition, the calculator did not cover all scenarios that would require a compensation payment or interest. This meant manual interest calculations may be required in some cases.

The Home Office had recently clarified that any costs incurred by Services in relation to additional pension liabilities and compensation would be fully funded and this would be dealt with through the AME top up grant process. 

The Board was updated on contingent decisions. These were decisions which members would have made differently had it not been for the discrimination. The LGA had now published an employer guide on contingent decisions which outlined the process to be followed, the relevant legislation and evidence requirements. Members would need to submit a claim within 12 months of receiving their initial remediable service statement (RSS). For most members this would be in August 2024. Employee guidance would be available in the near future.

For those wishing to purchase additional service or rescind opt out notices, they would need to pay the outstanding contributions. These contributions would also have interest added. Members purchasing opted out service would be able to repay this over a 14-year period.  At present the GAD calculator did not support the calculations for this scenario. Discussions were ongoing about how this would be implemented by Services.

The Payroll and Pensions Manager provided an update on the Matthews Remedy – on-call firefighters. The Board was advised that because of this ruling, the Firefighters’ Pension Scheme 2006 had been amended to allow members to backdate their pension service to their start date. The Firefighters’ Pension Scheme (England) (Amendment) Order 2023 took effect from 1^st October 2023. These regulations bring into force changes that allow Services to commence a second pension options exercise. Services would need to write out to eligible members with information about the scheme and invite them to express an interest in receiving a quote. This initial letter must be sent by 31^st December 2023 to ensure compliance with disclosure regulations, which require Services to notify members of any material change to the scheme within 90 days.

The options exercise must be concluded by 31^st March 2025. The Home Office had provided an indicative timeframe for each stage of the options exercise, but this was not mandated in the legislation, therefore Services were able to tailor this where appropriate.

The Board was advised that in the 2014 options exercise, attempts were made to trace leavers using the electoral register. However, a large number were not traceable. For the second options exercise, additional steps had been taken including posters for stations and liaison with retirement associations. Details of the options exercise had been posted to the Intranet and external website and a tracing agency has been engaged to locate any remaining members that cannot be traced through other means.

The Board had a discussion on the methods used to trace leavers.

RESOLVED: That

[1]      the Firefighter Pension Scheme update be noted.