The Cornwall and Isles of Scilly Fire and Rescue Service Local Pension Board met on Tuesday 13 October 2026 to discuss a business update, which included significant details on the progress of the Matthews Second Options Exercise and the Age Discrimination Remedy (McCloud/Sargeant). The Board noted the update and sought further clarification or assurance from officers.

Business Update

The Board received a comprehensive business update, presented by Matt Davies, the Pension Benefits Manager. Key discussions revolved around ongoing pension scheme administration, regulatory changes, and member communications.

Matthews Second Options Exercise: A significant portion of the update focused on the Matthews Second Options Exercise, which allows eligible retained firefighters to purchase pension entitlement as a special member of the Firefighters' Pension Scheme 2006 (FPS 2006). The exercise, originally scheduled to conclude in March 2025, has been extended to March 2027 following a consultation by the Home Office. Progress has been made, with a substantial number of calculations and statements issued. However, challenges remain, including tracing eligible individuals, dealing with complex cases requiring manual calculations, and managing member queries. The report highlighted that a higher number of member queries were received following the high number of issued statements.¹ The project's RAG status has been moved to amber due to delays in retrospective ill-health calculations.

Age Discrimination Remedy (McCloud/Sargeant): The Board was updated on the ongoing implementation of the Age Discrimination Remedy, stemming from the McCloud and Sargeant court cases. This remedy aims to rectify age discrimination in public sector pension schemes, including those for firefighters. The report detailed the prospective and retrospective changes to the Firefighters' Pension Scheme 2015 (FPS 2015) and legacy schemes. A significant issue highlighted was the delay in issuing Annual Benefit Statements (ABS) and Remedial Service Statements (RSS) by the statutory deadline of 31 August. This delay was attributed to technical issues with the administration system and the complexity of recreating data from previous years. The Board was informed that the breach had been reported to The Pensions Regulator, and revised timelines for issuing statements were provided: by the end of October 2026 for the Isles of Scilly and by the end of December 2026 for Cornwall.

Breaches Log: A new breach was recorded concerning the late distribution of the 2026 Annual Benefit Statements, failing to meet the 31 August deadline. The delay was due to the volume and complexity of producing the statements, particularly the Remedy Service Statements, and resource limitations. The Board was advised that a revised timetable had been reported to The Pensions Regulator, with statements for the Isles of Scilly expected by the end of October 2026 and for Cornwall by the end of December 2026. All statements would be distributed electronically unless members opted out.

Complaints Log: Two additional complaints were received regarding the Matthews Second Option Exercise, specifically concerning delays in receiving initial offer packs. These cases were affected by regulatory changes implemented on 1 April 2026. Affected members are being kept informed, and the complexity and workload involved in processing these cases were explained.

Secondary Contracts: An issue was identified with the administration of contracts for some Wholetime firefighters who also held On Call (retained) duties under a secondary contract. A challenge suggests these should be treated as a single contract, requiring rectification of payroll and pension records. While some retired firefighters have had their benefits revised, work continues to rectify records for non-retired members, which involves complex manual calculations.

Firefighters' Annual Conference (AGM): The Pension Benefits Manager and the Chairman confirmed their attendance at the Firefighters' Annual Conference. Key topics discussed included Pensions Ombudsman determinations, the use of AI with recommendations for data protection warnings, fire pensions governance, and improving communication with scheme members. These points will be discussed further in a future training session.

Tax Charges: The Board noted that several firefighters participating in the Matthews Second Options Exercise had incurred high tax charges due to the payment of pension arrears over extended periods. A national compensation framework is being developed by the Local Government Association (LGA) to address these circumstances.

Resource Increase: From 1 October 2026, the Pension Benefits team has been augmented with the employment of a new Pensions Technical Officer.

The Board resolved to note the update provided within the Business Update report and seek from officers such clarifications or further assurance as they require.