SCHEDULE
Article 2
SCHEDULE
PART I
TRANSFER VALUE PROVISIONS
1. In article 8 (meaning of expressions) —
(a) after the definition of “appointed day” insert:
““approved scheme” means superannuation arrangements falling within article 71A(2);”;
(b) after the definition of “brigade” insert:
““cash equivalent” means a cash equivalent mentioned in sub-paragraph (1) of paragraph 12 of Schedule 1A to the Social Security Pensions Act 19756,and “part cash equivalent” means the cash equivalent of any part of the benefits described in that sub-paragraph which is prescribed under sub-paragraph (2A) (continuation in employment after termination of pensionable service);”;
(c) after the definition of “child” insert:
““club scheme” means superannuation arrangements falling within article 71A(2)(a), (b) or (e);”; and
(d) after the definition of “injury” insert:
““personal pension scheme” has the meaning given in section 84(1) of the Social Security Act 1986;”.
2. In article 52B (previous service reckonable under current interchange arrangements)—
(a) in paragraph (4) for the words after “pensionable service” substitute
“calculated —
(a)
(a) if he became a regular fireman before 1st January 1986 and the former superannuation arrangements were not a club scheme, in accordance with paragraphs 1 to 4 of Part II of Schedule 9 and Part III of that Schedule, and
(b)
(b) in any other case, in accordance with paragraph 5 or 6 of Part II of Schedule 9.”; and
(b) for paragraph 5(b)(ii) substitute —
“(ii)
“(ii) if a transfer value such as is mentioned in paragraph (1)(c) were paid to the fire authority its amount would be at least A × B, where—
(A)
(A) is the annual amount of the pension to which he would in that event be entitled under article 91A, and
(B)
(B) is the factor ascertained from the Table below by reference to his age at the date on which the authority are requested to accept the transfer value.
TABLE
Age |
Factor |
29 or under |
8 |
30 to 39 |
9 |
40 to 49 |
10 |
50 or over |
12” |
3. In article 71A (payment of transfer values under interchange arrangements) —
(a) in paragraph (1) delete the words “subject to paragraph (3),”;
(b) in paragraph (2) for the words “Parts I and III of Schedule 9” substitute “Part 1A of Schedule 9”;
(c) delete paragraph (3); and
(d) after paragraph (4) insert:
“5 Notwithstanding anything in this article, a transfer value may not be paid if the fireman has acquired a right to a cash equivalent, unless —
(a) the service to which the cash equivalent relates includes service before 1st October 1990, and
(b) the right has been exercised by requiring the whole of the cash equivalent to be paid to the person responsible for the management of an approved scheme which is not a club scheme.
6 Notwithstanding anything in this article, a transfer value may not be paid if the fireman —
(a) has acquired a right to a part cash equivalent, and
(b) would on taking that right remain entitled to a deferred pension.
7 In this article references to retirement include references to electing under article 56A(1) not to pay pension contributions.”.
4. In Part I of Schedule 9 (transfer values payable by fire authority) —
(a) in the heading delete the words “or 71A”,
(b) in paragraph 1(1) delete the words “or 71A”, and
(c) delete paragraph 10.
5. After Part I of Schedule 9 insert:
“PART 1A
TRANSFER VALUE PAYABLE UNDER ARTICLE 71A
1. A transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under paragraph 14 of Schedule 1A to the Social Security Pensions Act 1975 for the calculation of cash equivalents.
2. Where —
(a) a transfer value is payable to the person responsible for the management of a club scheme or a personal pension scheme, or
(b) a transfer value is payable to the person responsible for the management of an approved scheme which is not a club scheme and none of the service to which it relates is service before 1st 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 person responsible for the management of an approved scheme which is not a club scheme, and
(b) the service to which it relates includes service before 1st 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 1st October 1990, and
(C) is a notional transfer value, calculated as if Part I of this Schedule had continued after 30th September 1990 to apply to transfer values payable under article 71A, in respect of his service before 1st October 1990.
4. Where —
(a) a transfer value is payable to the person responsible for the management of an approved scheme which is not a club scheme, and
(b) the service to which it relates includes service before 1st 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. Where —
(a) a transfer value is payable to the person responsible for the management 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 but as if the person’s service as a regular fireman had ended with 5th April 1988.”.
6. In Part II of Schedule 9 (service reckonable on receipt of transfer value)—
(a) in paragraph 1(1) for the words “The period” substitute “Where article 52B(4)(a) applies, the period” and after the words “in accordance with” insert “this paragraph and paragraphs 2, 3 and 4 of”; and
(b) after paragraph 4 insert:
“5.—(1) Where article 52B(4)(b) applies and the transfer value was received from the person responsible for the management of a club scheme, the fireman is entitled to reckon as pensionable service a period equal to the period that would enable the fire authority to pay a transfer value, calculated on the cash equivalent basis, of the same amount as the one received.
(2) In calculating the period any sum representing interest that is included in the transfer value received is not to be taken into account.
6.—(1) Where article 52B(4)(b) applies and the transfer value was received from the person responsible for the management of a personal pension scheme or an approved scheme which is not a club scheme, the fireman is entitled to reckon as pensionable service the period 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 person paying the transfer value,
(C) is 52 times the amount in respect of the fireman’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...
