Public Service Pensions PART 1 Introductory Citation and commencement 1 These Regulations may be cited as the Firefighters’ Pension Scheme (Consequential Provisions) Regulations (Northern Ireland) 2015 and come into operation on 1st April 2015. Interpretation 2 In these Regulations— “the 1993 Act” means the Pension Schemes (Northern Ireland) Act 1993 ; “the 2014 Act” means the Public Service Pensions Act (Northern Ireland) 2014; “the new scheme” means the pension scheme established by regulations made under section 1(1) and (2)(f) of the 2014 Act for the payment of pensions and other benefits to or in respect of fire and rescue workers; and “old scheme” means the scheme constituted by the Firefighters’ Pension Scheme Order (Northern Ireland) 2007 or the scheme constituted by the New Firefighters’ Pension Scheme Order (Northern Ireland) 2007 . PART 2 Modification of contracting-out provisions Application of this Part 3 This Part applies where— a an election is made under section 7 (elections as to employments covered by contracting-out certificates) of the 1993 Act in relation to persons who become members of the new scheme on or after 1st April 2015 and before 6th April 2016 (whether or not any of those persons are members of an old scheme); and b the new scheme satisfies the requirements of section 5 (requirements for certification of schemes) of the 1993 Act . Contracting-out 4 1 Part 2 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (certification of employments) is modified as follows in its application to the new scheme. 2 The requirements in regulation 2(1 )( a) (making of elections for the issue of contracting-out certificates) and regulations 3 (notices by employers of intended election) to 5 (time for making an election) do not apply. 3 In regulation 6 (information to be included in an election)— a paragraph (1) is to be read as though, for sub-paragraphs (a) to (f), there were substituted— a the name by which the new scheme is to be known; b the name by which the old schemes are known; and c any other information necessary to enable the Commissioners for Her Majesty’s Revenue and Customs to identify the old schemes. ; and b paragraphs (2) and (3) do not apply. PART 3 Modification of early leaver and other provisions Application of this Part 5 This Part applies where a person (P)— a is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2014 Act (final salary link); b is a member of the new scheme by virtue of pensionable service for the new scheme; and c is a person to whom paragraph 1 or 2 of Schedule 7 to the 2014 Act applies by virtue of that person’s pensionable service for the new scheme, and whose final salary falls for the purposes of the old scheme to be determined by reference to that paragraph. Certification 6 1 Section 11A of the 1993 Act (reduction of guaranteed minimum in consequence of pension debit) is modified as follows in relation to P. 2 In the application of that section to the old scheme, the reference in subsection (2) of that section to pensionable service under the scheme is to be taken as a reference to pensionable service either for the old scheme or for the new scheme. Preservation of benefit 7 1 Chapter 1 of Part 4 of the 1993 Act (protection for early leavers: preservation of benefit) is modified as follows in relation to P. 2 In the application of that Chapter to the old scheme— a in section 66 (interpretation), in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme; b in section 67(1) (basic principle as to short service benefit)— i the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision; ii a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme; iii a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme; iv a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme, and subsequent references in the Chapter to “short service benefit” are to be construed accordingly; c in section 67(5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme; d in section 67(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the old scheme or for the old and new schemes taken together; and e in sections 68(2) (no discrimination between short service and long service beneficiaries), 70(6) and (7) (computation of short service benefit), 71(3) and (4) (credits) and 72(1) and (3) (pension increases), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme. 3 In the application of that Chapter to the new scheme— a in section 66, in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme; b in section 67(1)— i the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision; ii a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme; iii a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme, and subsequent references in the Chapter to “short service benefit” are to be construed accordingly; c in section 67(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the new scheme or for the old and new schemes taken together; and d in section 70(6), in relation to pensionable service which is terminated, the reference to the beginning of that service is to be taken as a reference to the beginning of pensionable service for the old scheme. Revaluation of preserved benefit 8 1 Chapter 2 of Part 4 of the 1993 Act (protection for early leavers: revaluation of accrued benefits) is modified as follows. 2 In the application of Chapter 2 for the purpose of revaluing benefit payable to or in respect of P under the old scheme— a in section 79(1)(a)(ii) (scope of Chapter 2), the reference to the date on which P’s pensionable service ends is to be taken as a reference to the date on which P’s pensionable service ends in relation to the new scheme; and b subsequent references in that Chapter to “the termination date” and the “pre-pension period” are to be construed accordingly. Protection of increases in guaranteed minimum pensions 9 1 Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows. 2 In the application of that Chapter to P as a member of the old scheme— a in section 83(1)(a)(i) (general protection principle), the reference to the time when P ceases to be in contracted-out employment by reference to a scheme is to be taken as a reference to the time when P ceases to be in employment which is contracted-out by reference to the new scheme; and b subsequent references to “the cessation date” are to be construed accordingly. Protection of increases in guaranteed minimum pensions after abolition of contracting-out 9A 1 Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows. 2 In the application of that Chapter to P as a member of the old scheme— a in section 83(1)(a)(i) (general protection principle), the reference to the time when P ceases to be in pensionable service under a scheme that was, before the second abolition date, a salary-related contracted-out scheme is to be taken as a reference to the time when P ceases to be in pensionable service in relation to the new scheme; and b subsequent references to “the cessation date” are to be construed accordingly. Transfer values 10 1 Chapter 4 of Part 4 of the 1993 Act (protection for early leavers: transfer values) is modified as follows. 2 In the application of that Chapter to P as a member of the old scheme, in— a section 89(1)(a) (scope of Chapter 4), b section 93(3)(a) (calculation of cash equivalents), and c section 94(1A) and (3) (variation and loss of rights under section 90), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme. Transfer values regulations 11 1 The Occupational Pension Schemes (Transfer Values) Regulations ( Northern Ireland ) 1996 are modified as follows. 2 In the application of regulation 3 of those Regulations (rules on continuation in employment after termination of pensionable service) to P as a member of the old scheme— a in paragraph (1), a reference to employment to which a scheme applies is to be taken as a reference to employment to which the new scheme applies; b in paragraph (1)(a), a reference to P’s pensionable service terminating at P’s request is to be taken as a reference to P’s pensionable service in relation to the new scheme so terminating; and c in paragraph (1)(b)(i), a reference to P’s pensionable service continuing until the guarantee date is to be taken as a reference to P’s pensionable service in relation to the new scheme so continuing. 3 In the application of regulation 4 of those Regulations (right to further cash equivalent on termination of employment to which the scheme applies) to P as a member of the old scheme, in paragraphs (1), (2), (3 )( a) and (4), a reference to termination of P’s employment is to be taken as a reference to termination of P’s employment to which the new scheme applies. PART 4 Modification of tax regime Lifetime allowance charge 12 1 This regulation applies to a person (P) who— a is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2014 Act (final salary link); b is a member of the new scheme by virtue of pensionable service for the new scheme; c is being paid a higher or a lower tier ill-health pension under the new scheme; and d has an ill-health pension paid from the new scheme reduced as a consequence of P becoming entitled to payment of a scheme pension (within the meaning of paragraph 2 of Schedule 28 to the Finance Act 2004 under the old scheme. 2 Section 216 of the Finance Act 2004 (benefit crystalisation events and amounts crystallised) is modified in its application to P as specified in paragraph (3). 3 The payment of any scheme pension from the old scheme to P is treated as if it was not a benefit crystallisation event within the meaning of section 216 of the Finance Act 2004. Annual allowance charge 13 1 This regulation applies to a person (P) who— a is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2014 Act; b is a member of the new scheme by virtue of pensionable service for the new scheme; and c becomes entitled to payment of a lower tier ill-health pension under the new scheme. 2 Section 234 of the Finance Act 2004 (defined benefits arrangements) is modified in its application to P as specified in paragraph (3). 3 When calculating the closing value of P’s rights under the new scheme for the pension input period during which P becomes entitled to payment of the lower tier ill-health pension, the element of the lower tier ill-health pension that represents pensionable service for the old scheme is not to be counted as being part of the closing value. PART 5 Modification of short service benefit provisions Short service benefit 14 1 This regulation applies to a person (P)— a who is a deferred member of the new scheme; b who is entitled to benefits under the new scheme; and c whose– i entitlement to benefits under the new scheme is determined by, or ii benefits under the new scheme are computed by reference to, P’s deferred pension age rather than P’s normal pension age. 2 For the purposes of the requirements in sections 67, 68, 70 and 71 of the 1993 Act and in any subordinate legislation made under Chapter 1 of Part 4 of that Act, as they apply in relation to P, any difference— a between P’s entitlement to benefits under the new scheme and any active member’s entitlement to benefits under the new scheme, or b between the computation of P’s benefits under the new scheme and any computation of benefits of an active member under the new scheme, is ignored. Sealed with the Official Seal of the Department of Health, Social Services and Public Safety on 18th March 2015. Sharon Gallagher A senior officer of the Department of Health, Social Services and Public Safety The Department of Finance and Personnel consents to the foregoing Regulations. Sealed with the Official Seal of the Department of Finance and Personnel on 18th March 2015. Emer Morelli A senior officer of the Department of Finance and Personnel