Review of Pension Arrangements for Firefighters

New Pension Arrangements

Two consultation documents dealing with the pension arrangements for firefighters have been published.

The White Paper "Our Fire & Rescue Service", set out the Government's commitment to introduce a new pension scheme more suited to the service of the future which would tackle the high cost and inflexibility of the current scheme and reflect changes in the relevant tax and regulatory framework. In addition, was the commitment to introduce an appropriate pension scheme for Retained Firefighters, who are excluded from the pension provisions of the current scheme.

The cost of the existing pension arrangements is increasing and, year on year, is increasing as a proportion of the budgets of Fire & Rescue authorities. This cannot be sustained except to the detriment of the service delivered to the public, or through large increases in the pension contributions paid by Firefighters. Therefore we must take action to reduce future costs and this can only be done by adjusting the benefits which accrue in future.

New Pension Scheme

The Consultation document "Government Proposals for a New Firefighters' Pension Scheme" sets out the options for a pension scheme for new firefighters both regular and retained. The document makes clear that existing firefighters in the current pension scheme will not be required to move into the new scheme, although they will be able to do so, if they wish.

Exiting Pension Scheme

The consultation document "Proposals for Amendments to the Firefighters' Pension Scheme" sets out proposals for amendments to the exiting scheme (the FPS).

The FPS will be kept open when the new scheme is introduced, but on to existing members. New firefighters will be able to join the new scheme; they will not have access to the exiting arrangements.

However, amendments will be needed to the existing scheme to reflect tax and regulatory changes that are going to impact on all pensions schemes in general, and there are proposals for changes to the ill health and deferred pension age provisions which would bring both the current and new schemes into line with one another.

Outcome of Consultation Exercise

The ODPM have issued a new circular (FPS 3/2005) advising on the outcome of the consultation exercise that ended on the 14th of January 2005

The framework for the new scheme is contained in Annex A.

Questions and answers on issues which are likely to concern existing members are contained in Annex B.

The new unoffical annex of the Firefighter Pension Scheme Consolidated 1992 Order has also been published.

Useful Contacts

If you have any questions/concerns below is a list of useful contacts.



Martin Hill	Martin.Hill@odpm.gsi.gov.uk	020 7944 8641
Jean Archer	Jean.Archer@odpm.gsi.gov.uk	020 7944 5862
	firepensions@odpm.gsi.gov.uk
	firepensions-medical.appeals@odpm.gsi.gov.uk

The ODPM also has a website specifically for Fire Pensions information.

Please note that HFRS and HCC Human Resources payroll and pensions officers are unable to answer general or specific enquiries regarding the new pension scheme or the benefits or not of leaving the existing one and/or joining the new scheme. For the latter you should consult an independent financial adviser.