S.I. 2006/3432: memorandum from the Department for Communities and Local Government

Firefighters' Pension Scheme (England) Order 2006 (S.I. 2006/3432)

1. The Joint Committee asked for a memorandum on the following points:

1. To whom does the word "him" refer in the definition of "transfer value payment" in rule 2(1) of Part 1 of the new Scheme?

2. Explain the reason for the apparent mismatch between the definition of "firefighter member" in rule 2(1) of Part 1 of the new Scheme ("has the meaning given by rule 1(1) of Part 2") and rule 1(1) of Part 2 itself, which specifies entitlement to be a firefighter member but is silent on how someone so entitled becomes one.

2. In the definition of "transfer value payment" in rule 2(1) of Part 1 of the new Scheme "him" should have referred to the person to whom, or in respect of whom, rights to benefits under the Scheme had accrued. The Department apologises for the error, which will be corrected at the next available opportunity.

3. The Department accepts that, in giving "firefighter member" the meaning given by rule 1(1) of Part 2 of the new Scheme, it was essential that a reader of rule 1(1) of Part 2 should be able to identify the relevant persons. Since rule 1(1) of Part 2 refers only to persons who are "entitled to be" firefighter members of the new Scheme, the provision clearly fails to identify the persons who are actually firefighter members. Except where an election is required (rule 1(1)(b) of Part 2 of the new Scheme), a person becomes a firefighter member of the new Scheme on becoming a firefighter in the employment of a fire and rescue authority. Such a person only ceases to be a firefighter member of the Scheme for so long as his election not to make pension contributions remains effective. The Department accepts that no action is required on the person's part to change an entitlement to membership into actual membership and, accordingly, that "entitled to be" in rule 1(1) of Part 2 gives rise to the mismatch identified by the Committee. The error will be corrected at the next available opportunity.

Department for Communities and Local Government

5th February 2007