Adviser > Technical Central > Pre simplification > Occupational > The Firefighters' Pension Scheme (FPS)
The Firefighters' Pension Scheme (FPS)
The content of this page is based on our understanding of how pensions worked before A-Day, the 6 April 2006, and is provided for reference only.
The Government plan to introduce changes to the Firefighters' Pension Scheme to tie in with the new pensions proposals which will come into effect on A-Day. It has been proposed that the scheme early retirement age will increase from 50 to 55 and deferred pensions will be paid from age 65. The current scheme information is provided below.
Administrator
The scheme is administered by local authorities
Website available
As the pension scheme is usually administered locally, search for regional authority and contact their pension department
Useful site: Firefighters' Pension Scheme Website
Contracted-out
Yes
Eligibility
Deferred Joining Period - No, automatic unless opts out
Minimum Age At Entry - The minimum age for joining the fire service is 18, therefore cannot join the scheme prior to this age
Maximum Age At Entry - No maximum age (however compulsory retirement age is 55)
Contribution basis
AVC Scheme Available - There is not an AVC scheme available, however members can arrange their own FSAVC scheme
Stakeholder Scheme Available - There is no designated scheme, however members are free to have a Stakeholder plan (subject to normal restrictions)
Member Contribution - 11% p.a. of pensionable pay
Employer Contribution - Paid by central and local authority funds
Added Years permitted? - Yes, members can purchase additional years or the scheme may accept a transfer payment from a previous pension scheme
Salary definition
Pensionable Pay - For Assistant Chief Officers and above – pay determined for the post
For ranks below Chief Officers – pay determined for the rank that includes basic pay, flexible duty allowance, London allowance (if applicable) and pay received during period of temporary promotion. However this does not include overtime, expenses or allowances
Final Pensionable Pay - The highest pensionable pay over the year prior to and including the last day in service. However, if the salary is greater in any of the previous 2 years, then the highest salary is used
Pensionable Service - From date of joining to exit date in years and days
Normal retirement benefits
Compulsory Retirement Age - age 55 for all ranks up to and including Station Officer
Age 60 for the rank of Assistant Divisional Officer and above
Pension accrual - 1/60th for each year of service up to 20 years, then accrual rate doubles to 2/60ths up to a maximum of 2/3rds of pensionable pay
Early retirement on the grounds of ill-health
Immediate pension is calculated as for normal retirement. An enhancement is usually granted on ill-health based on service to date as follows:
- <2yrs – payment of ill-health gratuity
- 2-5 yrs – no enhancement
- 5-10yrs – service doubled
- 10-13 yrs – enhanced to 20 years
- over 13 yrs – 7/60ths plus 1/60th for each year up to 20 years plus 2/60ths for each year over 20 years
The benefit granted must not exceed 2/3rds
Additional benefits payable due to injury or disablement
Further benefits may be awarded if the member has suffered an injury or is disabled whilst doing their job
Early retirement
Members can retire early without any reduction at any age over 50, provided they have at least 25 years service
Late retirement
Retirement can be extended past the compulsory retirement age with the agreement of the fire authority
Retirement lump sum
Up to a quarter of the pension may be commuted if member receives either:
Below Assistant Divisional Officer
- an ordinary pension (after completing 30 years) or a compulsory retirement pension
- an ill-health pension
- a deferred pension coming into payment
- at compulsory retirement age (55 up to Station Officer, 60 Assistant Divisional Officer and above)
Assistant Divisional Officer or above and
- after attaining age 55 but before age 60, and
- having at least 25 years service but less than 30 years service,
- and having the consent of the fire authority for commutation of up to ¼ pension
Lump sum is restricted to 2 ¼ times pension before commutation if the following apply:
- at age 50 or over with 25 years service but less than 30 years service
- if member is an Assistant Divisional Officer or above and
- after attaining age 55 but before age 60, and
- having at least 25 years service but less than 30,
- and not having the consent of the fire authority for commutation of up to ¼ pension
Commutation factors
Factors provided by Government Actuary, based on age and sex, to determine how much pension is given up to provide a lump sum. Limits apply to maximum commutation
Pension increases
In line with RPI, however not payable until age 55 (exception ill-health retirement and survivors' benefits)
Death before retirement benefits
Lump Sum - 2 times pensionable pay
There are various types of widow(er)’s benefit provided by the FPS. The type payable will depend upon:
- the circumstances of death
- whether the death occurs in service or after retirement/leaving
- the length of the firefighter's service
- the date of marriage and marital situation at death
Normally for members who have completed more than 3 years pensionable service the ordinary pension payable amounts to 13 weeks of firefighter's pay, then 50% of firefighter’s notional ill-health pension
Normally for members who have completed less than 3 years pensionable service the pension payable amounts to 13 weeks of firefighter’s pay, plus one single payment of the annual amount of pay
Deferred members (with at least 2 years pensionable service) - The dependant will receive 13 weeks at rate of firefighter’s pay, then 50% of firefighter’s deferred pension
Death after retirement benefits
Dependant’s pension - The ordinary pension payable amounts to 13 weeks at rate of firefighter’s pension (including any pensions increase), then 50% of firefighter’s pension
If deferred pension which is not in payment the dependant will receive 50% of firefighter’s pension
If deferred pension which is in payment the dependant will receive 13 weeks at rate of firefighter’s pension (including any pensions increase), then 50% of firefighter’s pension
Early leaver options
Transfer value - Available on request
Preserved pension - Paid up pension payable from age 60 and is calculated as a proportion of pension earned by compulsory retirement age
Refund of contributions - If member has completed less than 2 years service then a refund of contributions can be paid
Treatment of pension rights on divorce
The court can order the scheme to pay all or part of the pension and lump sum. The scheme will only make payments to the former spouse when a court order has specifically instructed them to do so
Earmarking - If the former spouse remarries, he or she will not receive payments in respect of the pension after date of remarriage, however this normally does not affect the lump sum which has been earmarked
Pension sharing on divorce - The accrued pension rights are reduced by a percentage confirmed by the court. The former spouse is given rights in the scheme equal in value to the amount of reduction – known as the pension credit rights. There is no option to transfer the pension credit rights out of the FPS.
Any research and analysis included has been provided by us for our own purposes and the results of it are being made available only incidentally.
Published 02 August 2004
For professional advisers only
