Minutes:
The Board received an extract from the Firefighters’ Pensions Schemes Regulations and Guidance website on the second options exercise. (A copy was filed with the signed minutes and marked as Item 14).
CG explained that following a decision by the European Court of Justice in the O’Brien case, the principle established in the Matthews case had been extended back to start on 7 April 2000 (from a previous start date of 1 July 2000). This would extend the remedy period for retained firefighters to be treated equally as full-time firefighters and given the option to access pension benefits as a special member of the FPS 2006 (as the FPS 1992 scheme had closed).
She outlined 3 different cohorts of individuals in scope for the second options exercise:
1. Retained firefighters employed on any date between 7 April 2000 and 30 June 2000 (inclusive);
2. Retained firefighters employed on any date between 7 April 2000 and 30 June 2000 (inclusive) as well as on any date between 1 July 2000 and 5 April 2006 (inclusive);
3. Retained firefighters employed on any date between 1 July 2000 and 5 April 2006 (inclusive) who were eligible to take part in the first options exercise but were not given the opportunity to do so.
Clarification had been provided at a recent LGA “coffee morning” briefing that to meet the test of having been given the opportunity to take part in the first options exercise individuals should have been sent:
· an expression of interest letter and reminder, to the correct correspondence address, and
· a statement of the cost of joining the 2006 Modified Scheme.
It was noted that at NFRS in the first options exercise, statements had only been provided to 128 firefighters (i.e. those who had expressed an interest) out of a total of 304 firefighters deemed to be in scope then. Members who had not responded to the expression of interest request were initially thought to be outside the scope of the second options exercise, but in light of the recent LGA guidance, it was now clear they should be included.
A summary was provided of the data held on the first options exercise. It was estimated that the second options exercise would include approximately 300 firefighters. Due to the lack of clarity on the firefighters to be included in the third cohort (shown above), an extension had been given until 31 July 2022 to provide data to the LGA on the scale of the Matthews Second Options Exercise and its interaction with age discrimination remedy and aggregation.
CG commented that it was necessary to ensure all those in scope were identified. Should the exercise be mishandled and the Regulations for the second options included a strict time limit (like the Regulations for the first options exercise), the only recourse individuals may have would be via the IDRP process which was complex and lengthy for individuals and the FRA.
In answer to a question, she stated that a small number of individuals who had confirmed in writing that they did not want to join the FPS 2006 Modified Scheme in 2014, would still be included in the second options exercise as they may fall into “cohort 2”. She did not know, at this stage, how much effort and evidence would be required to demonstrate that the FRA had made reasonable endeavours to identify individuals during the first options exercise. It would be unnecessary to write to all firefighters again if they had declined to participate in the first exercise after receiving a statement.
Further guidance was required to respond to the LGA (with information required by 31 July) which was needed so the GAD could estimate the national cost of the second options exercise.
It had previously been agreed that this issue be included as a standing item on future agendas.