Hampshire Fire and Rescue Authority

Personnel Committee Item 5

12 September 2003

Repayment of Missed Pension Contributions During Periods of Industrial Action

Report of the Chief Fire Officer

Contact: Deputy Chief Fire Officer John Bonney - 023 8062 6832

1

Summary

1.1

The purpose of this paper is to outline the situation regarding missed pension contributions during a period of industrial action and to make a recommendation to the Authority as to an equitable approach for those staff wishing to make good their missed payments.

2

Background

2.1

Hampshire Fire and Rescue Service (HFRS) employees who chose to participate in industrial action are not entitled to reckon as pensionable service periods when their labour was withdrawn. This applies to members of both the Fireman's Pension Scheme (FPS) and the Local Government Pension Scheme (LGPS).

2.2

The pension schemes state that fire authorities can resolve to allow employees to repay contributions that have been missed as a result of taking industrial action if they wish to do so. In this event, employees will need to repay all missed contributions that would have been payable had they been paid at their normal rate.

2.3

Members of the FPS will be required to repay 11% on the pay they would have received had they been paid at their normal rate. There is no contribution from the Authority to be repaid. Members of the LGPS will be required to repay 16% on the pay they would have received, which includes both the employee's contribution of 6% and the Authority's contribution of 10%.

2.4

If the Authority agrees to employees repaying their contributions, employees will be written to individually detailing the exact amount they will be required to repay, should they wish to take up this option. They will have 30 days from receipt of the letter to notify the Payroll Section if they elect to repay. The monies will then be deducted from their monthly pay, either in one lump sum or in monthly instalments, with the employee's agreement.

2.5

Employees who elect to repay missed pension contributions will then be entitled to reckon these periods as pensionable service.

3

Key Issues

3.1

The National Joint Council Circular 03/03 issued on 15 July 2003 requests that fire authorities provide employees with the opportunity to make good missed pension contributions during periods of strike action.

3.2

There will be no cost to the Authority if they choose to allow missed pension contributions to be paid by employees under both schemes, apart from some minor administration costs. Providing an option regarding repayment would assist in raising the morale of employees during this sensitive time and would reflect the Authority's support for our personnel.

4

European Convention on Human Rights and the Human Rights Act 1998

4.1

The proposals within this report are compatible with the provisions of the European Convention on Human Rights and the Human Rights Act 1998 and considered in the light of the Race Relations (Amendment) Act 2000.

Recommendations

1

That the Authority agrees to allow HFRS employees to repay pension contributions that were missed due to participation in industrial action.

Section 100D - Local Government Act 1972 - Background Papers

The following documents disclose the facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of the report.

NJC Circular 03/03 - 15 July 2003 - Return to Work Agreement

Note: The list excludes:

(1) Published works

(2) Documents that disclose exempt or confidential information as defined in the Act