The Lincolnshire Fire and Rescue Fire Pension Scheme Board met on Friday, 10 January 2025, to discuss performance data, current issues within the pension scheme, and updates on various administrative and regulatory matters. Key decisions included noting the performance data, agreeing to update the risk register, and noting the ongoing work on the Sargeant/McCloud Age Discrimination Remedy and the Matthews 2nd Options Exercise.

Performance Data (West Yorkshire Pension Fund)

The Board received an update on the performance data from the West Yorkshire Pension Fund (WYPF). While overall performance was outlined, attention was drawn to lower priority areas that were not currently meeting targets. It was noted that data concerning the Matthews exercise had not yet been sent by the council. Employers were reminded to double-check their data submissions, as anomalies had caused delays, impacting six recent retirement packages due to queries about reduced pay. Progress on IT infrastructure and the Pensions Dashboard was also highlighted. The Board resolved to note the report and comments made.

Current Issues

Elizabeth Hipworth, HR Advisor to the Board, provided an update on current issues. There were no IDRP cases or breaches reported. Regarding the Sargeant/McCloud Age Discrimination Remedy, 473 individuals were in scope, with 183 of these also being part of the Matthews 2nd Options Exercise. Since 1 October 2023, 18 retirement notifications had been received, with 13 choosing legacy scheme benefits, 2 reformed scheme benefits, and 3 still in process.

For the Matthews 2nd Options Exercise, 710 individuals were in scope, with 346 wishing to receive costs for buy-back and 21 not wishing to do so. Responses were still awaited from 343 individuals, with the deadline for options being 31 March 2025, although the Home Office was consulting on a 12-month extension. Costs for buy-back were being calculated in line with the LGA priority order, with 103 out of 150 in priority 1 having been sent. WYPF was focusing on active members retiring soon and deferred members over 60.

The Board also received an update on Pension Dashboards, which are set to go live by October 2025. Testing of matching criteria had been conducted using primary keys (DOB, NINO, Surname) and secondary keys (First name, DOB, Surname), achieving a successful matching rate of over 94% with over 200,000 members. Work was underway to continue monitoring and following up on outstanding responses for the Matthews 2nd Options Exercise and to prepare for the Pension Dashboard launch.

The Board discussed these issues, noting that beneficiaries of the options exercise were advised to seek their own pension advice, as it was easy to misunderstand potential benefits. The Board agreed that engagement was crucial to encourage beneficiaries to explore the best option for them, with engagement being rolled out via podcasts, bulletins, and named contacts. It was clarified that these options would not directly impact early retirement but could affect the size of a member's pension pot. Thanks were extended to the team and West Yorkshire Pension Fund for their work on the options exercise. The Board resolved to note the update and comments made, and to appoint Andrew Crookham (Scheme Manager) as the nominated contact for Lincolnshire Fire and Rescue Fire Pension Fund.

Fire Pension Board Plan

William Dziadkiewicz, Employee Representative and acting Chair, provided an update on the Fire Pensions Board Plan. No further changes were noted for the board plan itself. Training records were discussed, and it was noted that Paul Brown had relevant training scheduled as a new member of the Board.

The risk register was reviewed:

• M2 (Lack of resource): A new member of staff had been recruited as the lead for Fire Pensions, leading the Board to agree that this risk could be downgraded to Medium.
• M5 (Immediate detriment): Guidance was still being awaited from the LGA before matters could be progressed, so the risk was agreed to remain unchanged in the meantime.
• A1 (Member data incomplete or inaccurate): The council's data accuracy would be reported at a subsequent meeting by West Yorkshire Pension Fund.
• A4 (Lack of skilled resources - LCC and WYPF): Although a new Fire Pensions lead had been recruited, they were from an NHS background and required further training and experience, which had been agreed. The Board agreed that this risk remain unchanged.
• A5 (Pensions Dashboard): This was noted as a newly added risk and would be monitored going forward.

The Board agreed to update the risk register as noted and that the council's data accuracy would be reported at a subsequent meeting. The Fire Pensions Board Plan, Training Record, and Risk Register were noted.

Fire Pensions Scheme Bulletins

Elizabeth Hipworth, HR Advisor to the Board, provided an update on recent scheme bulletins.

The November 2024 bulletin covered:

• Sargeant Age Discrimination Remedy: In advance of the Public Service Pensions and Judicial Officers Act 2022 and the Firefighters' Pensions (Remediable Service) Regulations 2023, some individuals retired under the Memorandum of Understanding Framework. Eight category 1 members were retiring and 10 category 2 members had already retired.
• Proposed Changes to the Member Contribution Rates from October 2025: The Home Office published a consultation on these changes on 20 November 2024, closing on 29 January 2025. The aims were to achieve target yields, update the contribution structure to encourage participation and reduce opt-outs, and ensure administrative sustainability. Work was underway to update member contribution structures and the FPS member website.

The December 2024 bulletin covered:

• Annual Benefit Statement / Remedial Service Statement (ABS/RSS): Statements had been produced to provide members with illustrations comparing benefits for membership between the remedy period. WYPF had received system updates to produce these statements, which were to be provided to members in the New Year and before the statutory deadline of 31 March 2025. Updates had been made to the WYPF and FPS Member websites.
• Matthews 2nd Options Exercise: The Home Office published a consultation on policy changes for the Matthews second options exercise on 23 December 2024. A proposal included a 12-month extension of the exercise to 31 March 2026. The LGA was to share their draft response ahead of the consultation deadline on 17 February 2025.

The Board resolved to note the update and comments made.

Fire Pension Officers' Group

Elizabeth Hipworth, HR Advisor to the Board, provided an update from the North East Region Fire Pensions Officer Group meeting on 27 November 2024. Key points included:

• Matthews/Sargeant Interaction: The LGA was to provide guidance on this, with separate calculators designed for Matthews and Sargeant due to a gap for cases falling into both. This had been raised with the Government Actuary's Department (GAD).
• Matthews: WYPF intended to provide guidance on Death Grants once processes were developed, and the Home Office was looking at developing guidance for Compensation Payments. A Matthews Working Group was to be set up by the LGA, including the Home Office, to address compensation matters.
• Pension Saving Statements: WYPF was working on remedy pension saving statements.
• Local Pension Board Chairs Meeting: The first meeting was held on 22 November 2024, discussing Matthews 2nd options exercise, Sargeant age discrimination remedy, and resources. A further meeting was scheduled for 6 February 2025.
• Induction Material: The LGA had developed a training PowerPoint slide deck with links to resources for new Fire Pensions personnel within FRAs.

West Yorkshire Pension Fund clarified that work was still commencing on Remedy statements and resources had been refocused on their dispatch. An update on progress would be sent to employers once completed. The Board resolved to note the update and comments made.

Update from Scheme Advisory Board

The Board was updated that the Scheme Advisory Board met on 12 December 2024. A verbal update from the Home Office was given, and discussions concerning Matthews calculations, GAD valuation updates, and LGA workstreams were heard. The Board resolved to note the update.

The next meeting was scheduled for 14 March 2025.