EXPLANATORY MEMORANDUM TO THE FIREFIGHTERS’ PENSION SCHEME (WALES) (CONSEQUENTIAL PROVISIONS) REGULATIONS 2015

This Explanatory Memorandum has been prepared by the Department of Local Government and Communities and is laid before the National Assembly for Wales in conjunction with the above subordinate legislation and in accordance with Standing Order 27.1.

Minister’s Declaration

In my view, this Explanatory Memorandum gives a fair and reasonable view of the expected impact of the Firefighters’ Pension Scheme (Wales) (Consequential Provisions) Regulations 2015. I am satisfied the benefits of making the Regulations outweigh any costs.

Leighton Andrews AM

Minister for Public Services

23 February 2015

Description

1. These Regulations modify how primary legislation on pensions legislation applies to the new firefighter pension scheme, to ensure that certain current members of public service pension schemes can join new pension schemes as active members, whilst retaining certain benefits in their existing schemes, under The Public Services Pensions Act 2013 (2013 Act).

Matters of special interest to the Constitutional and Legislative Affairs Committee

2.  There are no issues of special interest for the Constitutional and Legislative Affairs Committee.  

Legislative background                                                                   

3. Firefighters’ pensions are the only public-sector pensions devolved to Wales.  While the design and operation of pension schemes for Welsh firefighters is a matter for the Welsh Ministers, the overall policy framework is set by the UK Government and in UK legislation, in particular the Public Service Pensions Act 2013 (the 2013 Act).

4. By virtue of sections 1(1) and (2)(f), 2(1) and 3(1), (2), (3)(a) and (4) of, and paragraph 6(b) of Schedule 2 to, the 2013 Act, the Welsh Ministers have power to make regulations, in respect of the new firefighter pension scheme, to make consequential provision amending any primary legislation passed before or in the same session as that Act, as well as any consequential provision amending any secondary legislation. The Regulations make such consequential provision in relation to both primary and secondary legislation.

5. The Regulations are subject to the affirmative resolution procedure.

Purpose & intended effect of the legislation

6. The Firefighters’ Pension Scheme (Wales) (Consequential Provisions) Regulations 2015 (“the Regulations”) make consequential provision in relation to the new public service pension scheme for firefighters under the Public Service Pensions Act 2013 (c.25). They modify the effect of other statutory provisions in their application to the new firefighters’ pension scheme.

Certification provisions for contracting-out

7. Some employers choose to set up company pension schemes to provide a pension which replaces all, or part, of the additional State Pension provided the scheme meets minimum standards known as the Reference Scheme Test. This is known as “contracting-out” of the additional State Pension. Individuals who are