Report of the Assistant Director People Services

The Panel considered the report of the Assistant Director People Services (ADPS) setting out the situation relating to the McCloud/Sargeant judgement on Age Discrimination, Remedy and Immediate Detriment Cases in the Firefighters’ Pension Schemes.  The report also provided detail on how East Sussex Fire & Rescue Service (ESFRS) were able to proceed with on-going retirements that were immediately affected and included the Service’s legal position, identifying the scope, risks and recommendations of the approach.

The Assistant Director Resources/Treasurer (ADR/T) reminded the Panel that this was a complex and long-running issue which would continue to be a focus into the future and that there was no risk-free solution.  It was important to approach this in a balanced way, considering the Home Office guidance whilst accepting that the formal regulatory framework for remedy was not yet in place and recognising the outcome of the McCloud/Sargeant case and subsequent appeals.  The Service had established that if it chose not to enact Immediate Detriment the Authority would be knowingly in breach of the tribunal finding and at risk of further litigation.  It would be appropriate on balance for the Authority to make payment in those cases that the Home Office advice said could be paid.

The Panel thanked Officers for a comprehensive report explaining this complex matter.  There was a query regarding the numbers that might be affected and therefore the likely budget.  The ADR/T explained that the numbers in the report were the potential individuals that could retire before the legislation was put in place in October 2023.  This did not mean that they all would retire, qualify or be paid.  The Service understood that the costs of the remedy would potentially lead to increases in employer’s contribution rates in 2024/25 after the next revaluation of the Firefighters Pension Scheme and a request had been made for this to be funded by Government through the Comprehensive Spending Review.  With regards to other financial impacts there would administration costs to the Service and, potentially further legal costs.  Members were keen to consider the approach that exposed the Authority to least risk.  The ADR/T confirmed that ESFRS were not alone in recommending the approach within the report, and that other Fire & Rescue Services were making the risk judgement at a local level.  It was important to acknowledge that each case would be judged on its own merits and that there were good processes in place to enable decisions to be made in a way that mitigated risk.  The Pension Advisor added that the Services pension administrators West Yorkshire Pension Fund (WYPF) were very experienced, and calculations would be checked by way of assurance.  WYPF understood the legacy schemes and there was a very low risk of error, it was clear from the Home Office revised guidance who was in scope.

RESOLVED – The Policy & Resources Panel agreed:

       i.         to note the paper and the supporting appendices, in particular the risks identified;

     ii.         the Authority should follow the informal Home Office Guidance with regard to Immediate Detriment Cases, where possible:

    iii.         to implement Immediate Detriment and allow those Firefighter Pension Scheme members in scope to retire under their legacy scheme regulations; and

    iv.         to authorise the Assistant Director People Services to sign the waiver requested by West Yorkshire Pension Fund.