PURPOSE OF REPORT

To inform Members of the requirement for the Scheme Manager (the Authority) to produce a Firefighters Pension Discretionary Policy Statement.

To seek approval of the resolutions within the Firefighters Pension Scheme Discretionary Policy Statement and to seek approval that, on behalf of the scheme manager, decisions will be delegated on a day-to-day basis to the Chief Fire Officer and Treasurer.

EXECUTIVE SUMMARY

The Firefighters’ Pension Scheme Regulations provide the Authority with the responsibility to make decisions on certain discretionary elements of the scheme.  The Authority is required to formulate and publish a discretionary policy which sets out how the Authority will discharge this responsibility.

RECOMMENDATIONS

Members are requested to approve the resolutions within the Firefighters Pension Scheme Discretionary Policy Statement including, where appropriate, the delegation to the Chief Fire Officer and Treasurer.

OBSERVATIONS FROM THE LOCAL PENSION BOARD

This report was considered by the Local Pension Board on 27 May 2020 and no issues of note were highlighted.

BACKGROUND

There are currently four pension schemes in place for firefighters, the 1992 scheme (FPS), the 2007 scheme (NFPS), the 2007 RDS modified pension scheme (MPS) and the 2015 scheme.  This policy sets out some of the discretions applicable to the schemes and seeks approval of the Authority to an approach to dealing with these discretions.

INFORMATION

The firefighters’ pension scheme regulations require every scheme manager to issue a written policy statement on how it will exercise the various discretions provided by the pension schemes; keep it under review; and revise it as necessary. 

A summary of the discretionary elements within each scheme and the recommended approach is set out in the draft discretionary policy attached at appendix A.

IMPLICATIONS

Wellbeing Objectives - The Discretionary Policy provides clarity for decision making on certain pension issues contributing to securing the Authority’s financial sustainability.
Budget - Certain decisions can impact the budget in terms of increased employer superannuation payments and the impact on future actuarial valuations.
Legal - The regulations governing the administration of the Firefighters' Pension Schemes provide for a number of discretionary powers on the part of the Fire Authority.
Staffing - Potential impact on staffing levels if certain discretions impact a member’s retirement decision making process. Potential impact on the acceptance of temporary promotions offered.
Equalities/Human Rights/Welsh Language - None.