Home Office circular 003 / 2004

The Police Pension Scheme-Police Medical Appeal Boards/Role of Selected Medical Practitioner/British Transport Police Transfers
Broad subject: Police Service Issue date: Wed Jan 21 00:00:00 GMT 2004 From: CRIME REDUCTION & COMMUNITY SAFETY GROUP Police Personnel Unit Linked circulars: No Linked Circulars Sub category: Police pensions Implementation date: Wed Jan 21 00:00:00 GMT 2004 For more info contact: Ian Moir 020 7273 2814 Addressed to: Chief Officers of Police England and Wales Clerks to the Police Authorities Dear Chief Officer 1. HOC 52/2003 informed you of arrangements for the new system of Police Medical Appeal Boards and provided guidance prior to the commencement of services on 10 November 2003. The purpose of this circular is to: Provide a final agreed version of the PNB's Guidance on the Management of Ill-Health (including the Appeals Guidance); provide a full list of changes to the Police Pensions Regulations 1987 to be introduced administratively from 10 November 2003; provide forms to be used by Police Authorities and appellants (these have already been sent by email); advise on the treatment of appeals submitted before 10 November 2003 where the medical referee withdraws; advise on the treatment of Aon Health Solution's charges for purposes of VAT; update the contact details for Aon Health Solutions. 2. The circular also provides further advice on the pre-appeal role of the Selected Medical Practitioner; and gives advance notice of proposed arrangements for backdated transfers between the British Transport Police and Home Department forces. 3. It should be brought to the immediate attention of force personnel officers, force medical

practitioners, administrators of the Police Pension Scheme, Finance Officers and those responsible for payment of invoices. PNB's Guidance on Improving the Management of Ill-Health (including Appeals Guidance) 4. The document at Annex A, is the final agreed version of the PNB's Guidance on Improving the Management of Ill-Health. The entire document is provided for convenience, with pre-appeal guidance at paragraphs 1-53 and the Appeals Guidance at paragraphs 54-100. The pre-appeal paragraphs 1-53 were previously issued with HOC 21/2003 and are unchanged. An earlier draft of paragraphs 54-100 was issued at Annex A of HOC 52/2003 as the Draft Appeals Guidance, and this should now be destroyed. List of changes to Police Pensions Regulations 1987 to be introduced administratively from 10 November 2003 5. A full list of changes to the 1987 Regulations to be introduced administratively from 10 November 2003 is at Annex B. This list is also available on the Home Office's Police Reform website at www.policereform.gov.uk/payconditions/pensregschanges A separate circular will be issued when the 1987 Regulations have been amended retrospectively. Forms 6. The forms needed by Police Authorities and appellants for processing appeals under the new system were sent to designated contact points within Forces / Police Authorities by e-mail on 10 November 2003. Hard copies of these forms (which are unchanged) are at Annex C. They have been agreed by the PNB. 7. Please note that at paragraph 25 of HOC 52/2003 Appeal Form A was incorrectly titled. The correct title is Appellant's Statement of Grounds of Appeal. Home Office's Guidance to Board Members 8. The Home Office's Guidance to Board Members is also available on the Police Reform website at www.policereform.gov.uk/payconditions/boardmembersguidance It will be of interest to force medical practitioners as well as Board Members. The guidance will be updated periodically. Pre-10 November 2003 cases where medical referee withdraws 9. In order to avoid lengthy delays in processing appeals submitted before 10 November 2003, where the Home Office has appointed a medical referee who subsequently withdraws, such appeals will be heard by Police Medical appeal Boards. The Home Office will write to the appellant and request him / her to complete Form A and forward it to the Police Authority immediately to avoid further delays in processing the appeal. The 28 day time-limit for an appellant to appeal and the further 28 days in which to state the grounds for appeal would not apply in these cases due to the previous notification of appeal received by the Police Authority and the consent received for reports. The internal review procedure under Regulation H3(2) would not apply unless further evidence has come to light. This change will take effect from 1 February, but in view of the difficulties in securing the services of single referees the facility may also be used before this date. There are not expected to be many such cases. If there any difficulties in a particular case, you may wish to contact the Home Office. Treatment of Aon Health Solutions' charges for purposes of Value Added Tax

10. The Home Office has been advised by AHS that standard-rate VAT will be applied to its charges. It is AHS's responsibility as the supplier to determine the correct VAT-treatment of its charges after checking as necessary with HM Customs & Excise and to issue valid VAT invoices. There should be no financial impact on police authorities. We understand that Police Authorities will be able to recover the VAT because they come under the scope of the special VAT refund scheme for local authorities under section 33 of the VAT Act 1994. Updated contact details for Aon Health Solutions 11. AHS have provided an additional telephone number and an e-mail address. The updated contact details are:The Police Medical Board Administrator Aon Health Solutions 2 Circus Place London EC2M 5RS Tel. 020 7628 6342 or 020 7638 3421 E-mail: marguerite.schultz@aers.aon.co.uk Role of Selected Medical Practitioner SMP must now provide a report 12. In accordance with the administrative change announced by HOC 52/2003 (paragraph 6), which came into effect on 10 November 2003, all decisions made by the Selected Medical Practitioner under the Police Pensions Regulations 1987 and under the Police (Injury Benefit) Regulations 1987 should now be in the form of a report, not a certificate. No further certificates should be issued by the SMP. 13. The relevant procedures for the SMP to make his or her decision are set out in regulation H1, which provides for the SMP to determine issues of permanent disablement and injury, but these procedures also apply to decisions by the SMP under K2 (reassessment of injury pensions) and K3 (reduction of pension in case of default) and to the questions asked of the SMP under the Police (Injury Benefit) Regulations. Although the procedure under K1 (cancellation of ill-health and injury pension) is not explicitly linked to H1, the SMP should also be asked to give his or her decision on whether the person's disability has ceased in the form of a report. Cases where Selected Medical Practitioner role must not be performed by the Force Medical Adviser 14. HOC 21/2003 explained that as from 1 July 2003 the role of the SMP would be separated from that of the FMA in certain cases. 15. It may be helpful to remind colleagues that the FMA cannot act as SMP in any case involving the consideration of permanent disablement under regulation H1(2) (a) and (b). This requirement applies irrespective of whether the SMP is asked to consider the issue of permanent disablement on its own or whether the SMP is asked to consider this issue together with the issue of an injury award

under H1(2) (c) and (d). 16. The issue of permanent disablement is not restricted to cases of possible ill-health retirement under regulation A20. The FMA cannot act as SMP in other cases where permanent disablement is being considered. These are: A claim for early payment of a deferred pension under regulation B1(5); A claim for early payment of a deferred pension under regulation B5(4); A claim for an injury award made by a former officer under regulation B4 who has not already been assessed as permanently disabled - where the issue of permanent disablement must be decided first before the issue of injury can be addressed. 17. The cases where the FMA may still act as SMP are therefore as follows: A claim for an injury award under B4 made by a person already assessed as permanently disabled. Review of an ill-health pension under K1. Reassessment of an injury pension under K2. Reduction of pension in case of default under K3. A claim for an injury gratuity under the Police (Injury Benefit) Regulations. 18. As stated in paragraph 49 of HOC 21/2003, although the cases immediately above remain unaffected by new procedures for separating the roles of FMA and SMP, the regulations now make it possible to refer such questions to a board of SMPs if necessary. Transfers between the British Transport Police and Home Department Forces 19. On 30 April 1998 a PNB agreement provided for the mutual recognition of rank and service for pay purposes in order to facilitate interchange between BTP and HD Forces. It was recognised at the time that another way to facilitate interchange would be to introduce improved arrangements for dealing with pension transfer values. However, the process of implementing the required pension changes to give full effect to the PNB agreement has taken longer to complete than we had hoped. 20. We are now able to confirm that we propose to conclude a bilateral agreement between British Transport Police (BTP) and Home Departments Forces (HD) which will enable transfer values from the British Transport Police Force Superannuation Fund (the BTP Scheme) to be treated as though BTP were a member of the Public Sector Transfer Club. Subject to consultation with the Police Negotiating Board, it is proposed that the necessary amendments to the Police Pensions Regulations will come into force by 1 April 2004 or as soon as possible after that date, but it is envisaged that it will have effect from 1 February 2001. This is the date on which the Strategic Rail Authority (SRA) was set up. 21. Fuller details of the arrangements will be issued in a HOC nearer the time, but you should be aware of the proposals for backdating so that preparations can be put in hand in good time for the amendments. Backdating to 1 February 2001 applies to two sets of people: serving and retired officers who last transferred to an HD force on or after 30 April 1998 and have paid in a transfer value from the BTP Scheme between 1 February 2001 and the date of the new regulations coming into force would need, without any application required, to have their service credit recalculated and backdated on the basis of the more favourable transfer rate (although their CETV payment will not change); and serving officers who last transferred into an HD force on or after 1 February 2001 but who have not paid in a transfer value from the BTP Scheme would have a year from the date the new regulations come into force for them to make such a transfer-in under the bilateral arrangement in the same way as Club transfers.

22. In addition to backdating the agreement to 1 February 2001 it is proposed to provide police authorities with the discretion to grant either of the following applications provided the applicant last transferred from BTP to an HD Force on or after 30 April 1998 and the application is made within three months from the date the amendments come into force: from serving and retired officers who transferred in service from the BTP Scheme on or after 30 April 1998 but before 1 February 2001 to have their service credit recalculated and backdated on the basis of the more favourable transfer rate (although their CETV payment will not change); and from serving officers, where no such transfer value has yet been received, for a transfer value from the BTP Scheme to be accepted on bilateral agreement terms - in the same way as Club transfers. (We propose that the application need be no more than a request to set the arrangements in hand, subject to the normal proviso that the officer would be able to accept or reject the eventual offer of service credit.) 23. This advance notice is given at this early stage so that work can be put in hand now to identify those who would be covered by these provisions for backdating.

John Gilbert Head of Police Pensions and Retirement Policy Section