Firefighters’ Pension Scheme 1992 – Commutation Grievance
22nd December 2008
Please find attached FPSC 10/2008 which was issued by the Department for Communities and Local Government on 17th December 2008. This circular outlines the current position of the grievances re the implementation date of the revised commutation factors. Members in Scotland should also read the Scottish Fire and Rescue Service Circular 20/2008 (attached) which gives details on their 227 identified
Also included within FPSC 10/2008 is a copy of a response to the initial grievance from Martin Hill (CLG) which outlines the current grievance position and the Judicial Review brought by the Police Federation on an issue surrounding the actuarial tables and the implementation date.
Whilst the FBU recognises the significance of the Judicial Review there are areas contained within the response letter that we feel are inaccurate.
Firstly the Police Federation Judicial Review is based on the allegation that the Home Office has not applied the regulations that govern the Police Pension Scheme properly. We make the same allegation about the implementation of the new commutation factors in the FPS by CLG, but we also say that the whole issue had been mishandled by either the Government Actuaries Department (GAD) or CLG. That is a complaint of “maladministration” as well as an allegation of breach of the rules similar to the issue raised by the Police Federation. Additionally the FBU grievances potentially date back to 2001 unlike the Police Federation who are basing their claim on an implementation date of December 2006.
CLG also say in the Circular that it has no role in the management of the FPS. If that is an attempt to pass the buck to individual FRAs then it is plainly wrong: they have no choice but to implement the new factors in accordance with the guidance issued by CLG. We do not automatically hold them to account for any maladministration by GAD, hence the grievances also being sent to GAD.
The FBU has raised this commutation issue on several occasions with both CLG and GAD and do not accept that the grievance route taken is inappropriate. The procedure utilised by FBU members is in line with the guidance stipulated by the Pension Ombudsman
‘The complaint or dispute should always first be taken up in writing with the people or bodies thought to be at fault. Almost all occupational pension schemes are required by law to have a formal internal dispute resolution procedure. Where the requirement applies, if the trustees or managers have not been given the opportunity to issue their decision then the Pensions Ombudsman cannot deal with the matter. Members, ex-members, spouses and dependants wanting to complain against the trustees or managers of the pension scheme should write to them asking for the procedure to be used’
The Courts have jurisdiction to deal with breaches of the law but they have no jurisdiction to deal with allegations of maladministration. Only the Pensions Ombudsman has. He also has overlapping jurisdiction to deal with allegations that the rules have been breached. The procedure to date complies with the Ombudsman’s advice although GAD have as yet failed to respond, despite further letters from the FBU outlining the unreasonable time taken to reply.
Members must realise that the ongoing Judicial Review and potential appeals will almost certainly delay any action by CLG or GAD but they can be assured that the FBU will continue to progress this and members will be kept informed of any developments the usual channels. All updates will also be available to view and download on the FBU website www.fbu.org.uk
Yours in Unity,
SEAN STARBUCK
NATIONAL OFFICER
