New pension arrangements published by Communities and Local GovernmentFollowing the completion of a consultation process in early 2005, the Government has published details of proposed new pension arrangements for firefighters.
The new schemes, intended to modernise existing arrangements, and enhance flexibility and cost-effectiveness, will now be subject to further consultations with unions and employers, before being laid before Parliament in the New Year. The proposals are made up from a set of revisions from the existing scheme and a new scheme for recruits. Both will continue to be operated on a ‘final salary’ basis. The main revisions to the current scheme include raising the pension age from 50 to 55. Whilst firefighters will no longer be able to retire at 50 with a full pension, those who have to work and pay pension contributions after 30 years’ service will be entitled to extra pension. However, those due to retire on or before April 2013 will remain unaffected by the new pension age. The revisions also include reform of the benefits paid on ill-health retirement. The new scheme will apply to all new recruits after its introduction, scheduled for April 2006, although all firefighters will have the option of switching to it if they wish. The new scheme will introduce a normal pension age of 60, whilst allowing firefighters to continue working beyond that age if they wanted to, and could meet the fitness requirements. Members of the new scheme will also have the option of commuting part of their pension to a lump sum, as well as an increased death grant and survivor benefits available to unmarried partners. Further information can be found at www.communities.gov.uk/firepensions. See also the Firefighters' Pension Special, March 2006. |
Article Date: 28th October 2005 |
