Minutes:
FPS Immediate Detriment (ID) Developments
CG referred to the information circulated electronically the previous evening and provided a summary of the background and current position. Whilst the HO guidance on ID issued on 10 June 2021 had been formally implemented by NCC in July 2021, this had subsequently been withdrawn by the HO on 29 November 2021.
Prior to that date, the LGA and FBU had jointly issued a Memorandum of Understanding and Framework on 8 October 2021 which set out a mechanism for handling ID cases. Each FRA had been encouraged to adopt the Framework to provide a consistent approach to ID cases across the fire and rescue service. It introduced two categories, the first being active and deferred members and the second related to pensioners who had retired since 2015 on FPS 2015 scheme benefits, who wanted pension benefits paid from their legacy scheme.
CG explained the work required within tight timescales to implement the Framework. It had not yet been implemented by NCC, though work had been undertaken with the intention of doing so.
A policy note issued by HMRC on 27 October 2021 put work to adopt the Framework on hold. A statement jointly issued by the LGA/FBU asked FRAs to adopt the Framework despite the uncertainty caused by the HMRC policy note and impact on taxation and compensation. Work had been carried out to determine the number of category 1 and 2 cases at NCC and at that stage it was considered that failure to implement the ID Framework outweighed the risks of implementation.
However, a note published by HM Treasury on 29 November 2021 set out that in their view, ID cases could not be processed before legislation was in place.
The LGA had sought legal advice from Bevan Brittan and this was expected in the next few days. CG stated that the balance of risks of implementing the ID Framework had changed following publication of the HMT note and the position would be reconsidered by the CFO when the legal advice was received.
The Chair welcomed the update and hoped that the position could be reviewed on receipt of the legal advice and a further review of the process by the Board be held at the next meeting on 25 January 2022.
In answer to a question from GT regarding cases at NCC, CG and the CFO confirmed that the LGA had been clear that MoU and Framework was either adopted in full or not at all. The ID cases identified at NCC could not be processed until a decision was made regarding adoption of the MoU and Framework.
GT and the FBU were thanked for their understanding of the situation which had become even more complicated in recent weeks. Ideally, all 46 FRAs should process ID cases in the same manner, however, the lack of coordination between Government departments was not helpful.
The Chair thanked everyone for their participation and wished everyone a Merry Christmas.
(The meeting ended at 11.18 a.m.)
CHAIR S Richards
DATE 11 January 2022