Archived decisions

Hampshire Fire and Rescue Service

Human Resources Committee Item 9

30 November 2007

Changes to Firefighters Compensation Scheme affecting Second Contracts of Employment

Report by HR Director

Contact: Keely Stafford, Employee Relations Manager, Tel: 023 8064 4000 ext 5425

E-mail: [email protected]

1

Summary

1.1

The purpose of this paper is to inform HR Committee members of the injury award provisions contained in the Firefighters Compensation Scheme (England) Order 2006 and outline how this affects employees with more than one contract of employment under Grey Book terms and conditions.

2

Recommendation

2.1

It is recommended that this report be received by the HR Committee.

3

Introduction Error! Bookmark not defined.and Background

3.1

The Firefighters Compensation Scheme (FCS) came into force on 6 April 2006 and altered the way in which Grey Book employees are compensated for an injury on duty, which results in their Ill Heath Retirement. More specifically, the Scheme alters the level of protection afforded to Grey Book employees with a second contract of employment that commenced after 6 April 2006.

3.2

It should be noted that, following changes to the Firefighters Pension Scheme (FPS), which are mirrored in the New Firefighters Pension Scheme (NFPS), regarding eligibility for Ill Health Retirement, an employee being retired on the grounds of ill health is very unlikely. Both the FPS and NFPS afford that a Firefighter must be unable to fulfil all elements of their respective Role Map. Therefore, unless an individual's condition is such that they are unable to carry out any aspects of their Role Map, they will not be a candidate for Ill Health Retirement. In such cases, the Service will look at alternative roles and/or reasonable adjustments, where possible, to continue their employment. If there are no suitable alternative roles, or reasonable adjustments we can consider, the individual will be dismissed.

If an individual is eligible for Ill Health Retirement, and their medical condition occurred as a result of an injury on duty, they may then qualify for compensation under the Firefighters Compensation Scheme.

In the past three years, Hampshire Fire & Rescue Service has retired two employees on the grounds of Ill Health, both prior to the amendments to the FPS and NFPS. If these two cases were current, it is highly unlikely that either would qualify for Ill Health Retirement under the new conditions.

3.3

Since 6 April 2006, Retained Duty System (RDS) Firefighters and Wholetime Firefighters taking up a second contract of employment as an RDS Firefighter have been eligible to join the NFPS. As such, if they are permanently disabled as a result of an injury in the course of their RDS duties, they are eligible to receive compensation benefits based on their RDS pay and service only. Prior to 6 April 2006, RDS Firefighters were not eligible to join a pension scheme.

This is in contrast to RDS Firefighters, or Wholetime Firefighters who commenced a second contract of employment as an RDS Firefighter, prior to 6 April 2006. If these Firefighters are permanently disabled as a result of an injury in the course of their RDS duties, they are eligible to be treated as if they are a Wholetime Firefighter member of the FPS when calculating their compensation benefits. Therefore, individuals who satisfy this criteria have been given protected rights under the FPS should they qualify for an injury on duty.

3.4

To qualify for an injury on duty, the Scheme defines that a Firefighter must:

· Have retired, and,

· Be permanently disabled by an infirmity caused by a qualifying injury.

A qualifying injury is defined as an injury received by a person without his or her own default (i.e. not their fault) in the exercise of his or her duties as a Firefighter. Permanent disablement is defined in the Scheme as "incapacity, occasioned by infirmity of mind or body, for the performance of duty" and which will continue at least to normal retirement age.

A Firefighter does not have to be a member of the FPS or NFPS to be covered by the Firefighters Compensation Scheme, to be eligible for an injury award.

3.5

The differences on the pension and injury award arrangements are summarised in the table below. It is likely that most employees affected by the change to the Firefighters Compensation Scheme will fall into one of the categories below, however, there may be some whose circumstances differ. If this should be the case within HFRS, the Employee Relations team will seek further guidance from the Department of Communities and Local Government (DCLG).

Wholetime Firefighter (FPS member) who commenced RDS firefighting duties before 6 April 2006

Wholetime Firefighter who commenced RDS firefighting duties (NFPS member) on or after 6 April 2006

Wholetime Firefighter who commenced RDS firefighting duties (non NFPS member) on or after 6 April 2006

Qualifying injury relating to Wholetime service

Wholetime contract

Ill-health pension from FPS.

Injury award from FCS.

RDS contract

No ill-health pension.

Wholetime contract

Ill-health pension from FPS.

Injury award from FCS.

RDS contract

Ill-health pension from NFPS.

Wholetime contract

Ill-health pension from FPS

Injury award from FCS.

RDS contract

No ill-health pension.

Qualifying injury relating to RDS service

Wholetime and RDS contract

Ill-health pension from FPS (based on either the Firefighters RDS service or Wholetime service, whichever is greater).

RDS contract

Injury award from FCS (calculated as if the Firefighters RDS service was Wholetime service).

Wholetime contract

Ill-health pension from FPS.

RDS contract

Ill-health pension from NFPS.

Injury award from FCS in accordance with the Firefighters RDS service (pro-rated to that of an equivalent Wholetime Firefighter).

Wholetime contract

Ill-health pension from FPS.

RDS contract

No ill-health pension.

Injury award from FCS in accordance with the Firefighters RDS service (pro-rated to that of an equivalent Wholetime Firefighter).

4

Action Taken

4.1

The DCLG recommended that Fire Authorities make all employees affected by the provisions within the Firefighters Compensation Scheme aware of their differing entitlements to compensation should they be injured in either of their contracts of employment.

4.2

The Employee Relations team met with Representatives from the FBU and RFU to discuss how this information should be disseminated to the affected employees. Summary documents have been produced and are being issued to employees who are considering undertaking a second contract. All existing employees affected were written to on 26 October 2007 and provided with guidance relevant to their situation.

4.3

Employees have been informed that further guidance is available on the Human Resources page on the Intranet or from the Employee Relations team.

5

Future Action

5.1

Employee Relations are responding to direct queries and collating a Frequently Asked Questions section on the intranet for employees to access.

5.2

Briefing sessions for employees will be considered if there is demand from employees.

6

Risk Analysis

6.1

There is potential that the reduced protection for employees wishing to become an RDS Firefighter after 6 April 2006 could have an impact on the Service's ability to attract candidates for RDS vacancies. Therefore, it is essential that potential RDS employees are fully informed of their entitlements during the recruitment process.

6.2

There is potential for individuals who were employed on a second contract after 6 April 2006 to resign from these posts if they were unaware of the provisions of the Firefighters Compensation Scheme and they do not fully understand the impact that this would have on them personally. This needs to be managed carefully to mitigate the risk. In particular the effect on the resilience of USAR and MIRG will be assessed and addressed by appropriate measure commensurate with the scheme rules and contract requirements.

7

Consultation

7.1

All the relevant Representative Bodies, the FBU and RFU have been consulted regarding the implications of the Firefighters Compensation Scheme and the ways in which Hampshire Fire & Rescue Service has informed affected employees.

Background Information

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:

Firefighters Compensation Scheme (England) Order 2006.

DCLG Circular - FPSC 6/2007 The Firefighters Pension Scheme - Second Contracts of Employment (issued 14/08/2007).

A Guide to the Firefighters' Compensation Scheme 2006 - For Retained Firefighters appointed after 5 April 2006.

A Guide to the Firefighters' Compensation Scheme 2006 - For Retained Firefighters appointed before 6 April 2006.