Firefighters Pension Scheme Wales 2015 · CAS-36612-B7C0

CAS-36612-B7C0

Ombudsman’s Determination Applicant Mr S

Scheme Firefighters' Pension Scheme Wales 2015 (FPSW 2015)

Respondents South Wales Fire & Rescue Service (SWFRS)

Rhondda Cynon Taf County Borough Council (the Council)

Outcome

Complaint summary

Background information, including submissions from the parties The sequence of events is not in dispute, so I have only set out the salient points. I acknowledge there were other exchanges of information between all the parties.

Mr S joined SWFRS on 10 September 2007 at the age of 25, having previously accrued seven years and four days’ pensionable service in the PCSPS.

On joining SWFRS, Mr S became a member of the New Firefighters’ Pension Scheme (Wales) 2006 (NFPS 2006).

In 2008, Mr S asked if he could transfer his preserved PCSPS benefits into NFPS 2006 and his request was granted. However, during the process of carrying out the transfer, the scheme administrator discovered that, due to Mr S’ age, his preserved benefits only equated to three years and 361 days’ service in NFPS 2006. Mr S

1 CAS-36612-B7C0 sought, and was granted, a reverse transfer and his preserved benefits were returned to and accepted by the PCSPS in 2009.

Subsequently, NFPS 2006 closed and Mr S joined FPSW 2015.

On 16 March 2018, Mr S asked the scheme administrator if he could transfer his preserved PCSPS benefits into FPSW 2015 on Club transfer terms. Briefly, a Club transfer is a method whereby members of certain public service pension schemes can transfer between schemes on preferential terms. Mr S wanted to transfer his preserved PCSPS benefits as FPSW 2015 had no limits in respect of the number of years’ service that would be bought by the transfer value. Mr S was aware his request was out of time but asked if there was any discretion to permit a Club transfer due to his particular circumstances.

On 16 March 2018, the scheme administrator responded to explain that the Cabinet Office’s Public Sector Transfer Club Memorandum (the Memorandum) provided the rules on Club transfers, confirming that transfers of this nature were subject to a strict time limit and members could only effect such a transfer within 12 months of first joining the scheme. This also meant that being transferred from another Firefighters’ pension scheme on a compulsory basis did not confer on the member a fresh 12- month period in which to request a transfer in from another scheme on Club transfer terms.

Mr S was informed that, while it would not be possible to transfer on Club transfer terms, he could transfer his preserved PCSPS benefits into FPSW 2015 on normal terms.

On 17 December 2018, Mr S met with the Human Resources (HR) department at SWFRS to discuss his Club transfer request. The history of his transfer request was explored and it was noted that his 2008 transfer to the NFPS 2006 Scheme had been reversed in 2009 to avoid any loss of accrued rights and benefits already built up in the PCSPS.

His new request to transfer retrospectively into NFPS 2006, following the outcome of court cases that had resulted in legislation amending age discrimination, was discussed and an alternative transfer to FPSW 2015 on Club transfer terms was also considered. However, no resolution was reached, with Mr S alleging age discrimination.

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Following his discussions with HR, Mr S remained dissatisfied and raised a complaint under the Internal Dispute Resolution Procedure (IDRP), as follows:-

• He had previously arranged a transfer in of his preserved PCSPS benefits but, in 2009, this was reversed due to the adverse effect of his age on the amount of benefit that the transfer would have secured for him in NFPS 2006.

• However, in December 2015, age discrimination in pensions had been ruled unlawful. This meant that firefighters who, by virtue of contributing between the ages of 18 and 20, would previously have exceeded their maximum permitted Scheme membership, would now be able to take a contribution holiday if their Scheme membership exceeded 40 years.

• He contended this outcome meant he should have been allowed to transfer in the full value of his preserved PCSPS benefits, and take a contribution holiday in future, should he exceed the maximum 40 years’ membership in FPSW 2015.

• Now that he was a member of FPSW 2015, he should be able to transfer in his preserved benefits and continue to contribute, thus enhancing his future pension benefits.

On 20 February 2021, SWFRS issued its Stage One IDRP letter which stated:-

• Individuals joining NFPS 2006 at 18 years of age would have continued to pay into NFPS 2006 and would have had their service capped at 40 years.

• NFPS 2006 was now closed, and therefore no mechanism existed whereby Mr S’ preserved PCSPS benefits could be transferred into that scheme.

• It was open to Mr S to transfer his preserved PCSPS benefits to FPSW 2015 on non-Club transfer terms. There were no statutory time limits for this to happen.

• However, there was a statutory time limit of 12 months from joining NFPS 2006 to effect a transfer on Club transfer terms. As Mr S’ request had been made outside this time limit, he could only transfer on non-Club transfer terms.

Mr S did not accept SWFRS’ response and asked for reconsideration of his complaint under IDRP Stage Two. He argued that:-

• He had previously been discriminated against on the grounds of age when his previous transfer of preserved PCSPS benefits was reduced in value.

3 CAS-36612-B7C0 • In December 2015, age discrimination in pensions had been ruled unlawful, meaning the full amount of his transfer should have been applied when he was a member of the NFPS 2006 scheme. Failing that, it should be transferred to FPSW 2015 on the more favourable Club transfer terms.

• He had been promoted, and looked to progress further in future, meaning the preserved PCSPS benefits could be significantly enhanced by transferring in to FPSW 2015 on Club transfer terms.

On 8 July 2019, SWFRS and the Council’s Panel (the Panel) issued the Stage Two IDRP response to Mr S and stated:-

• There was unanimous agreement that Mr S’ appeal would not be upheld.

• It confirmed the Stage One decision that there was no mechanism to transfer his preserved PCSPS benefits into NFPS 2006 because this was a closed scheme.

• The only alternative was to transfer into FPSW 2015 on non-Club transfer terms.

• Compulsory transfer to FPSW 2015 from NFPS 2006 did not allow a fresh 12- month period in which to request a Club transfer, and therefore this option was not open to Mr S.

• It found no further evidence or provisions that could allow the transfer into any of the Firefighter Pension Schemes on Club transfer terms.

• It acknowledged that there had been maladministration during the processing of the 2008 transfer, but this had since been rectified when Mr S’ preserved benefits were transferred back to the PCSPS in 2009.

• It found that no loss had been suffered and Mr S was not in a worse financial position as a consequence of previous events.

4 CAS-36612-B7C0 Adjudicator’s Opinion

Mr S did not accept the Adjudicator’s Opinion and the complaint was passed to me to consider. SWFRS confirmed it had nothing to add to the matter but that Mr S could still request a non-Club transfer and it would be happy to assist him. The Council made no further comment.

Mr S provided his further comments which do not change the outcome. I agree with the Adjudicator’s Opinion and note the additional points raised by Mr S, which are summarised below:-

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o Have the original transfer request granted on the basis there was no difference between his case and that pertaining to the 1992 Firefighters’ Pension Scheme age discrimination case.

o Have his pension transferred on Club transfer terms.

Ombudsman’s decision

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I do not uphold Mr S’ complaint.

Anthony Arter

Pensions Ombudsman 17 December 2021

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