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New Firefighters’ Pension Scheme (PO-3511)

Complainant: Mr Michael Smith
Complaint Topic: Benefits: incorrect calculation
Ref: PO-3511
Outcome: Not upheld
Respondent: 1. South Wales Fire & Rescue Service (the Service)
2. Rhondda Cynon Taf County Borough Council (the Council)
Type: Pension complaint or dispute
Date:

Subject

Mr Smith has complained about the decision not to include certain allowances paid to him during his employment in the calculation of his pensionable pay.

Appeal

Mr Smith’s original complaint was dealt with by the Deputy Pensions Ombudsman who issued a determination on 11 December 2012, which Mr Smith subsequently appealed. Following a decision in the High Court, on 22 March 2013, the appeal was allowed in part. The Court held that the Deputy Pensions Ombudsman did not err in law in holding that the rent, fuel and light allowances paid to Mr Smith were not part of his pensionable pay under the Scheme. In his judgment His Honour Judge Jarman QC said that the rent, fuel and light allowances were not permanent emoluments within the meaning of Regulation 1(1)(b) on the basis that allowances which are payable by virtue of a firefighters’ assignment to the day-crewing duty system are essentially temporary, because regular firefighters are liable to be transferred to different duty systems.

However, the matter has been remitted to my office for reconsideration with particular reference to whether the annual retainer paid to Mr Smith constituted part of Mr Smith’s pensionable pay under the Scheme.

What follows is my further determination of Mr Smith’s complaint.

The Pensions Ombudsman’s determination and short reasons

The complaint should not be upheld against either the Service or the Council because the annual retainer payments made to Mr Smith were temporary payments and were not pay in relation to the performance of the duties of the firefighter member’s role and therefore do not constitute part of Mr Smith’s pensionable pay within the meaning of Regulation 1(1)(a) or 1(1)(b) under the Scheme.

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