Hampshire Fire and Rescue Authority

Personnel Committee Item 7

12 September 2003

The Firemen's Pension Scheme Order 1992 (FPS) - Consultation Document

Report of the Chief Fire Officer

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

1

Introduction

1.1

As a result of the recent publication of the Government White Paper `Our Fire and Rescue Service', a number of changes are being proposed to the Firemen's Pension Scheme Order 1992 (FPS). Most of these are of a tidying up nature rather than tackling fundamental issues such as retirement ages, funding levels or the possibility of pensions for retained firefighters. The purpose of this report is to explain the main proposals and advise the Committee of the potential impact if adopted.

2

Background

2.1

Amendments are made to the Firemen's Pension Scheme periodically and until recently have been mainly the result of changes in pension and family law. However, the recent Government White Paper, in proposing radical changes to employment conditions and patterns of working, highlights the inflexibility of the current scheme. The Scheme regards all firefighters as wholetime staff working traditional shift patterns and undertaking full operational duties. Clearly for the future, with the introduction of a role-based system and increased flexible working, a growing proportion of staff will not conform to this model. It is because of this that the Office of the Deputy Prime Minister has recently proposed a number of changes (see Appendix A - Amendments to the Firemen's Pension Scheme Order 1992 (FPS): Consultation paper)

2.2

In addition to the need to align the Scheme with future organisational and working arrangements, the Government is committed to reducing the loss of skilled staff through early retirement. The proposals seek to achieve this in two ways. Firstly, by redefining the levels of fitness which a firefighter must achieve to undertake work of a non-operational nature. Secondly, by introducing independent scrutiny of approvals for early retirement on ill-health grounds.

3

Main Proposals

3.1

The proposed amendments cover two of the pension issues highlighted in the Government's White Paper `Our Fire and Rescue Service'.

3.1.1

A change in the definition of firefighter allowing people to remain in the pension scheme if they undertake roles other than firefighting. At present, a firefighter must be fit to engage in firefighting to stay in the scheme. This has been a barrier to the retention of those firefighters who are able to offer other skills to the Service after an earlier career involving firefighting. This change will not affect a firefighter's conditions of service; the aim is not to retain people who are unfit for all operational duties. It is designed to enable an employer to continue to draw on the experience of trained firefighters who may no longer undertake firefighting duties and enable firefighters to stay in the scheme and receive the benefits that it offers.

This follows on from one of the many recommendations in the Independent Review of the Fire Service conducted by Sir George Bain.

3.1.2

An obligation on fire and rescue authorities to use independent medical assessment before approving applications for early retirement on ill health grounds. Many fire authorities are already starting to do this and indeed have undertaken similar arrangements as part of the local government pension scheme for some time. To achieve efficiencies Hampshire have a mutual arrangement with Dorset Fire Brigade to validate each others assessments using qualified staff

In addition, the amendments cover a range of issues including:

· The tidying up of provisions to take account of maternity, adoption and paternity leave and benefits paid to dependents which helps to clarify reckonable service when such leave has been taken.

· The introduction of part time regular firefighters into the Service. This is an attempt to reclassify wholetime staff as `regular firefighters' who may ultimately either work full time or part time. At present the proposal is carefully constructed to preclude retained firefighters from the scheme. As members will be aware this whole issue of retained members pension rights is the subject of a high court appeal.

· Clarification of pensionable pay both in terms of what constitutes `20 years service' and how salary paid whilst on new forms of statutory leave, ie, maternity, paternity and adoption, is calculated for pension purposes.

· A revision in the responsibilities of Medical Appeals Boards and how costs might be apportioned in the future when boards are cancelled or postponed at short notice. At present the employing authority bears these costs.

Stating who can act as representatives at Appeal Tribunals which are established in certain cases when a person has been in temporary employment. This now allows for an authorised advocate to represent the appellant.

3.2

Although not specifically mentioned in the document there is a need to rename the Scheme to reflect the more diverse nature of the workforce. A more appropriate title would be `The Firefighters Pension Scheme'.

4

Financial Implications

4.1

Advice from the pensions section of the Hampshire County Council suggest that there are likely to be minimal cost implications arising from these amendments. Arrangements for independent medical assessments are currently met on a quid pro quo basis with neighbouring brigades but may in the future; if specific assessors are designated, bring additional costs. At present, however, there is no proposal to do this.

4.2

There may be financial benefit in that talented and experienced staff will not be automatically retired prematurely by dint of the necessity to be fit for operational duties even if they are in (or moved to) non-operational positions.

5

European Convention on Human Rights and the Human Rights Act 1998

5.1

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.

Recommendation

That the proposals contained in the consultation document be noted; and, if it is so minded, to respond to the Scheme to the Office of the Deputy Prime Minister in support of the amendments to the Scheme.

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 produced by the ODPM entitled:

Amendments to the Firemen's Pension Scheme Order 1992 (FPS): Consultation paper

http://www.hantsfire.gov.uk/jobs/pensionconsultation.html

Note: The list excludes:

(1) Published works

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