Policy for the NI Firefighters’ Pension Scheme (2015)

Public Consultation Response Report

December 2014

INDEX

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Consultation Process
Summary of Responses / 3
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Consultation Process

1.On 6th October 2014, the Department published the consultation document – Policy for theNI Firefighters’Pension Scheme (2015). The document consulted on the NI Proposed Final Offer and the policy direction in respect of Scheme Benefits, Scheme Funding Arrangements, Transitional Arrangements and Governance Arrangements.

2.The consultation ran from 6 October 2014 until 30 November 2014. The consultation document was available on the Department’s website and was advertised in the local press. The key stakeholders the Northern Ireland Fire and Rescue Service and the FBU were advised of the consultation by the Department.

3.The consultation sought views on the policy proposals relating to NI Firefighters’ Pension Scheme 2015 and the following question was posed:

  • Do the Policy proposals outlined in this document meet the requirement to reform firefighters' pension’s provisions to make them more affordable, sustainable and fairer to members of the pension’s schemes and the taxpayer?

4.Two responses were received in respect of this consultation, from the Fire Brigades Union (FBU) and the Northern Ireland Fire and Rescue Service (NIFRS) respectively. This report provides a summary of the Department’s position in relation to the points raised by the FBU and NIFRS.

5.There is clear overall support for the policy proposals as evidenced by the recommendation by the FBU Executive Committee and approval of its members in a resultant ballot. No change is anticipated from the policy position in the development of the regulations.

Summary of Responses

The Department welcomes the responses to the consultation made by both FBU and NIFRS.

FBU Response:

  1. The FBU recognises the imposition of the cost ceiling by HM Treasury and has always opposed thisbut would expect that any improvements in this element gained elsewhere are replicated in Northern Ireland.

Department Response:

The employer cost cap (cost ceiling) is set in accordance with directions given by the Department of Finance and Personnel and is therefore outside the Department control.

FBU Response:

  1. The FBU continues to oppose increases in employee contributions.

Department Response:

The Department is committed to mirroring the level of employee contributions paid by firefighters in England.

FBU Response:

  1. Transitional protection is a concern for the FBU. The Scottish Government has improved the position offered by DCLG.

Department Response:

The Proposed Final Offer which was recommended by the FBU Executive Committee and agreed by members is within the cost envelope available. The Department understands that the cost of the “improved” position in Scotland when compared to DCLG is outside the available cost envelope and Scotland is providing additional funding as a consequence.

FBU Response:

  1. The FBU is seeking improvements in relation to the current commutation arrangements proposed in the 2015 scheme in all parts of the UK.

Department Response:

The cost of the scheme benefits outlined within the Proposed Final Offer (including current commutation arrangements) is within the available cost envelope. The Proposed Final Offer was recommended by the FBU Executive Committee and accepted by its members.

FBU Response:

  1. The FBU has submitted a response to the transitional and consequential provisions regulations in England. A copy of this response has been provided for information only as the English response does not take account of the scheme differences between Northern Ireland and England.

Department Response:

The regulations in respect of the Northern Ireland Firefighters Transitional and Consequential Provisions are currently out for consultation. The Department will welcome any comments the FBU may have in response to that consultation.

NIFRS Response:

  1. NIFRS have noted that the levels of protection outlined in the Policy document relate solely to the FirefightersPension Scheme (FPS) and New Fire Pension Scheme (NFPS) as does the calculator provided. There appears to be no clarification of the protection that will be given to those retained firefighters who join the modified scheme.

Department Response:

The Department noted that the 2015 scheme policy document relates to FPS and NFPS but the retained firefighters who fall under the auspices of the modified scheme are included as NFPS.

The current calculator deals with calculations for members of the FPS and NFPS and as members of the modified scheme will be members of the NFPS they are catered for by the calculator.

NIFRS Response:

  1. Question 11 in the frequently asked questions sets out the multipliers to be applied to protect member’s expectation for double accrual. The table sets out only the factors for members with complete year’s continual pensionable service.

Department Response:

In applying the factors specified in the table at Q.11 of Frequently Asked Questions it is recommended that any members with part year’s services should have their age either rounded up or down to meet the nearest full year of service.

NIFRS Response:

  1. NIFRS notes the new Governance arrangements that are proposed in this Consultation. Careful consideration must be given to the Terms of Reference of both Boards and would welcome further clarification and consideration of this.

Department Response:

The Department has established a working group with representatives of the FBU and NIFRS to progress the development of the governance structures. Terms of Reference, policies and procedures will be developed and documented through the establishment of required guidance and steers.

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