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Firefighters 2006 scheme
Pension statement:
Protected 2006 notes

Notes to the statement – 2006 Fully Protected

We have provided these notes to explain your annual benefit statement (ABS). They cannot cover every circumstance and if there is a dispute, the appropriate law will apply.

They do not give you any rights under contract or by law.

  1. Your partnership status reflects our current records. Your partner’s pension will be calculated based on your partnership status at the date of your death.


    Please see Annex F for further information on surviving partner pensions

  2. This is the fire and rescue authority who you were employed by at the date of this statement.
  3. This is the date you joined or will join the 2015 Scheme
  4. This is the Firefighters Pension Scheme you are a member of at the date of this statement. If you are a taper-protected member and have not reached your taper date, you will join the Firefighters Pension Scheme 2015 on the date stated.
  5. This is the total current value of your pension benefits in this employment if you left the scheme at the date of statement, and which would be paid at the deferred pension age that applies to the scheme you are a member of at the date of this statement, as shown in the table in Annex A.


    This value may be adjusted for a number of reasons. Please see Annex G for more information.

  6. The current value of the death in service lump sum has been based on the scheme you are a member of at the benefit statement date, as shown in the table in Annex F.
  7. This is the current value of survivor’s benefits due if you die as an active member of the scheme at the benefit statement date, based on your partnership status as set out in Annex F.


    Death in service survivor’s pensions are paid at 50% of the higher-tier ill-health pension that would have been due. Please see Annex F. for more information on death benefits.

  8. These are the recorded beneficiaries as held on your record for 2006, Special Modified 2006 and 2015 Scheme members. (A recorded beneficiary is the person you have chosen to receive a survivor’s pension if you die.) Members of the 1992 Scheme do not have the option to record a beneficiary, as survivor’s pensions are not paid to cohabiting partners under the 1992 Scheme rules.


    Please see Annex F. for further information on recording beneficiaries.

  9. The pensionable pay should equal the amount of pay you have received and paid pension contributions on as a member of the 2015 Scheme during the scheme year. Please contact your Fire & Rescue Service directly if you have any questions about pay, including what is included in pensionable pay.
  10. If you have chosen to pay Added Pension 2015, this is the value of the additional pension benefits bought for the current scheme year.
  11. This is the value of any benefits you opted to transfer into the 2015 Scheme from another pension provider during the scheme year.
  12. This is the total value of 2015 pension built up in the scheme year.
  13. Your 2015 scheme pension is increased by a revaluation order each year on 1st April. This statement reflects the adjustment applied as a result of this order to your pension as at 31 March (closing balance)
  14. The final salary pensionable pay used to calculate your final salary benefits is the full- time equivalent (FTE) pay as supplied by your authority for the ‘Scheme Year’ end shown on the statement. Please contact your Fire & Rescue Service directly if you have any questions about pay, including what is included in pensionable pay.
  15. The current value final salary pension is the pension that is due if you left the scheme at ‘Scheme Year’ end shown on the statement. and would be paid at the deferred pension age, as shown in Annex A.


    Please see Annex A for examples of how this has been calculated.

  16. Your final salary pension may include an amount relating to long service increment (LSI) and additional pension benefit (APB).


    Please see Annex B for more details on LSI and APB.

  17. Your estimated pension is based on your NPA (normal pension age).


    Please see Annex C for details on retiring from the Scheme.

  18. This is the total value of your estimated benefits at your normal pension age, and may include both final salary and 2015 Scheme pension.


    This value may be adjusted for the reasons listed in Annex G.

  19. The estimated value of the 2015 Scheme pension is calculated based on the 2015 pension built up to the date of your statement, plus your estimated service from that date to your normal pension age (age 60), multiplied by 1/59.7th of your pensionable pay for the scheme year as shown.


    If, at the date of your statement, you have not yet moved into the 2015 Scheme but will do so by your normal retirement age, the salary used to estimate your benefits is your current actual pay.

    The value of this estimate does not include any adjustment for future revaluation under Treasury Revaluation Orders.

    Please see Annex D for an example of how this is calculated.

  20. This is the estimated value of your final salary pension (1992, 2006 or Special Modified 2006). See Annex E for more information.
  21. You can exchange part of your pension (up to 25%) for a lump sum. Due to tax regulations, members of the 1992 Scheme (including protected, taper-protected and unprotected members) may choose to adjust the amount of lump sum that relates to their 1992 Scheme pension to avoid a tax charge or limit the amount of pension they exchange to the maximum tax- free amount available.


    A commutation factor is applied to the part of the pension you give up to calculate the amount of the lump sum.

  22. How the survivor’s pension is calculated will depend on which pension scheme you were a member of at the date you retire.


    A survivor’s pension is normally paid if, when you die, you are married, have a civil partner or an eligible cohabiting partner (someone you live with who would be entitled to a survivor’s pension).

    See Annex F for more information.

  23. At retirement your pension will be reduced by any pension debit in place. See Annex G for further details.
  24. This is the estimated annual amount of pension growth during the Pension Input Period, for the purposes of this statement this has been calculated using your pensionable pay at 31st March.


    If this amount exceeds £40,000 or you are subject to a tapered annual allowance of between £10,000 and £40,000, you may need to pay tax. Please see Annex H for further details

  25. This is the total amount of pension benefits you have accrued at the statement date. If this is over £1 million tax may be due. Please see Annex H for further details.
  26. Service history details: It may not be possible to supply a full service history on this statement. If you have any questions about your service history, please contact us.

Financial advice

Your fire authority and pension administrator cannot give you financial advice about the information contained in your annual benefit statement. If you need help to find an independent financial advisor, you can use the following link. www.moneyadviceservice.org.uk choosing-a-financial-adviser

Note on the regulations

The benefits in this statement have been calculated under the Firefighters Pension Scheme Regulations which were in force at the date it was produced.

These notes are an informal interpretation of the Firefighters Pension Scheme Regulations, as only a court can provide a definitive interpretation of the law.



Annex A – Notes on the Current Value of benefits at the statement date

This is the total current value of your pension benefits in this employment if you left the scheme at the date of the statement, and which would be paid at the deferred pension age as per the table below.

1992 Scheme 2006 Scheme Special Modified 2006 Scheme 2015 Scheme

Deferred pension age

60

65

60

State Pension age

Final Salary Pension

2006 Scheme (Standard and Special members)

Protected

The current value of benefits for the final salary 2006 Scheme is calculated based on service up to the date of the statement divided by an accrual rate, multiplied by your final pensionable pay. The table below lists the accrual rate that applies.

Taper-protected and unprotected members

The current value of your benefits for the final salary 2006 Scheme is calculated based on your service up until you joined the 2015 Scheme, divided by an accrual rate, multiplied by your final pensionable pay. The table below shows the accrual rate that applies.

2006 Scheme (Standard member) Special Modified 2006 (Special member)

Accrual rate

1/60ths

1/45ths




The examples below show how this is calculated.

  • Example A – 2006 Scheme Final Salary Current Value (Protected Members Example)
  • Example B - 2006 Scheme Final Salary Current Value (Tapered or unprotected Members Example)

Example A

2006 Scheme Final Salary Current Value (Protected Members Example)

Sam is a protected member of the 2006 Scheme, who joined the New Firefighters Pension Scheme on 6th April 2006, as part of the options exercise and converted 6 years of 1992 scheme pension to 2006 scheme pension of 4 years.

Sam was born on 25th November 1960 and is a protected member, as they were 50 and over at 1st April 2012.

At the statement date Sam has pensionable service of 14 years 360 days with average pensionable pay of £31,686.

Calculation

The deferred pension calculated at the statement date will be as follows.

(£31,686 ÷ 60 x 14 years 360 days) = £7914.27

Example B

2006 Scheme Final Salary Current Value (Taper or unprotected Members Example)

Jo is an unprotected protected member of the 2006 Scheme, who joined the New Firefighters Pension Scheme on 29th September 2008.

Jo was born on 4th April 1985 and is an unprotected member, and moved into the 2015 scheme on 1st April 2015.

At the statement date Jo has final salary pensionable service of 6 years 184 days (29th September 2008 to 31st March 2015) with average pensionable pay of £27,500.

Calculation

The deferred pension calculated at the statement date will be as follows.

(£27,500 ÷ 60 x 6 years 184 days) = £2,981.05

1992 Scheme

If you are a member of the 1992 Scheme, your deferred pension is calculated as a proportion of the double accrual pension you would have expected at normal pension age, which is age 55 or at 30 years’ service, whichever happens first, spread over years actually served.

B x C ÷ D

B = notional pension

C = period in years of pensionable service

D = period in years of notional service

The notional pension and service for a 1992 taper-protected or unprotected member remains unchanged and is the service and pension you would have expected to achieve at normal retirement age under the 1992 Scheme if there had been no reform to the pension scheme.



The examples below show how this is calculated if you are a protected member or tapered / unprotected member.

  • Example A - 1992 Scheme Final Salary Current Value (Protected Members Example)
  • Example B - 1992 Scheme Final Salary Current Value (Tapered or unprotected Members Example)

Example A

1992 Scheme Final Salary Current Value (Protected Members Example)

Jane is a protected member of the 1992 Scheme, who joined the Firefighters Pension Scheme on 31st July 1990.

Jane was born on 1st September 1966, and would expect to retire on 30th July 2020, having completed 30 years’ service.

At 31st March 2016, Jane has completed 25 years and 244 days of service. Her final salary pensionable pay is £32,000.

Calculation

Her deferred pension calculated at 31st March 2016 will be as follows.

B = notional pension

As Jane will be able to complete 30 years’ service before age 55, her notional pension will be 40/60ths x £32,000.

B = 40÷60 x £32,000 = £21,333.33

C = Period of years of pensionable service to 31st March 2016

C = 25 years and 244 days

D = Period of years of notional service

D = 30 years

(£21,333.33 x 25 years 244 days ÷ 30 years) = £18,253.15


Example B

1992 Scheme Final Salary Current Value (Tapered or Unprotected Members Example)

The calculation for a taper-protected or unprotected member is the same formula as for a protected member. However, the period of years of pensionable service (C) is calculated to the date of joining the 2015 Scheme.

The notional pension and service for a 1992 taper-protected or unprotected member remains unchanged and is the service and pension you would have expected to achieve at normal retirement age under the 1992 Scheme if there had been no reform to the pension scheme.

Example

Ben is an unprotected member of the 1992 Scheme, who joined the Firefighters Pension Scheme on 1st December 1997.

Ben was born on 30th March 1972, and will retire on his 55th birthday (29th March 2027), having completed 29 years and 119 days.

His final salary pensionable pay is £42,000.

Calculation

His deferred pension calculated at the statement date will be as follows.

B = notional pension

The notional pension is calculated as the pension Ben would have received at age 55.

29 years 119 days service plus 9 years 119 days (double accrual) = 38 years 238 days 60ths.

38 years 238 days ÷ 60 x £42,000 = £27,056.44

B = £27,056.44

C = Period of years of pensionable service in the 1992 Scheme (to 31 March 2015)

C = 17 years 121 days

D = Period of years of notional service

D = 29 years 119 days

(£27,056.44 x 17 years 121 days ÷ 29 years 119 days) = £15,990.19


Career average pension

2015 Scheme

The current value of your 2015 Scheme pension is your closing balance at the statement date.

This is calculated using the closing balance from your last year’s statement, adding the increase for revaluation and adding the pension built up in the current scheme year.

Example

Pensionable Pay

1st April 2015 to 31st March 2016 £34,160

1st April 2016 to 31st March 2017 £34,501.60

Current Value 2015 Scheme Pension

Scheme Year Opening Balance Revaluation In year build up Closing balance

1st April 2015 to 31st March 2016

£0.00

£0.00

£572.19 (£34,160 x 1 ÷ 59.7)

£572.19

1st March 2016 to 31st March 2017

£572.19

£11.43

£577.92 (£34,501.60 x 1 ÷ 59.7

£1,161.55


Annex B – Notes on LSI & APB

Long service increment (LSI)

LSI is calculated in line with the formula:

A + (B x 2) x £990 / 60

A is the number in years (counting part of a year as the appropriate fraction) by which the pensionable service up to and including 30th June 2007 is more than 15 but less than 20.

B is the number in years (counting part of a year as the appropriate fraction) by which the pensionable service up to and including 30th June 2007 is more than 20.

Additional pension benefit (APB)

An additional pension benefit (APB) is paid where the fire and rescue authority decides that the benefits listed (a) to (d) below are pensionable.

The amount of APB is calculated by multiplying the pension contributions made on the APB payment by an age-related factor provided by the scheme actuary.

Additional pensionable payments

The Firefighters’ Pension Scheme (England Only) Regulations, Part B, Rule B5C, paragraph 5 lists the benefits pensionable under an APB as below -

www.legislation.gov.uk The Firefighters’ Pension Scheme (Amendment) (No.2) (England) Order 2013

  1. any allowance or supplement to reward additional skills and responsibilities that are applied and maintained outside the requirements of the firefighter’s duties under the contract of employment but are within the wider functions of the job;
  2. the amount (if any) paid in respect of a firefighter’s continual professional development;
  3. the difference between the firefighter’s basic pay in their day to day role and any pay received whilst on temporary promotion or where he is temporarily required to undertake the duties of a higher role;
  4. any performance related payment which is not consolidated into his standard pay.

Example

A member of the 1992 Scheme is age 50 on 1 July 2015. The relevant age-related factor is 19.1. The APB in the year to 30 June 2015 attracts pension contributions of £150. The additional benefit is calculated as £150 ÷ 19.1 = £7.85 per year.



Annex C – Notes on retiring from the scheme

Normal Retirement

Entitlement to benefits is from Normal Pension Age:

1992 Scheme 2006 Scheme Special Modified 2006 Scheme 2015 Scheme

Age 55, or 30 years’ service, whichever happens first

60

55

60

1992 taper-protected or unprotected members

Taper-protected or unprotected members with benefits built up in the 1992 Scheme can retire and take their 1992 pension at the retirement age for the 1992 Scheme. The earliest eligible retirement age is 50 (with 25 years’ service).

Early retirement

The minimum pension age for taking the 2015 Scheme pension is age 55.

If you take your 2015 Scheme pension earlier than your normal pension age, an early retirement factor will apply – see the box below.

Active factors

If you choose to retire and take your benefits from the 1992 Scheme at the age of 55 or over, you can draw the 2015 Scheme pension early. A reduction factor depending on your age (as in the table below) will be applied to the value of your 2015 Scheme pension at the date you want to retire.

Age 55 Age 56 Age 57 Age 58 Age 59

England

21.7%

17.9%

13.8%

9.4%

4.8%

Or, you can retire and take your benefits from the 1992 Scheme and defer payment of your 2015 Scheme pension until your State Pension age when it would be paid unreduced.

Deferred factors

If you choose to retire and withdraw your benefits from the 1992 Scheme before age 55, the 2015 pension benefits are deferred to your State Pension age and paid at an unreduced rate. However, you can draw your deferred benefits early, from age 55. A reduction factor depending on your age (as in the table below) will be applied to the value of your 2015 Scheme pension at the date you want to retire.

Age 55

Age 56

Age 57

Age 58

Age 59

England

46.9%

44.2%

41.3%

38.2%

34.9%



Annex E - Notes on calculating the estimated value of the Final Salary Scheme Pension at retirement

This is the estimated value of your final salary pension (1992, 2006 or Special Modified 2006).

Protected members

A protected member is somebody who is protected by legislation to stay in the existing final salary scheme (1992, 2006 or Special Modified 2006 Scheme), and so will not move into the 2015 Scheme.

If you qualify as a protected member, your estimated pension is calculated based on your service up to your normal retirement date divided by an accrual rate multiplied by your final pensionable pay at the date of this statement.

The table below shows the accrual rate that applies.

1992 Scheme

2006 Scheme

Special Modified 2006 Scheme

Accrual rate

1/60ths for first 20 years

2/60ths for each of the following years

1/60ths

1/45ths

Taper-protected and unprotected members

2006 Scheme (Standard and Special members)

If you are a taper-protected or unprotected member, your estimated pension is calculated based on your service until you join the 2015 Scheme, divided by the relevant accrual rate (as in the table above) multiplied by your final pensionable pay at the date of this statement .

1992 Scheme

Taper-protected and unprotected members of the 1992 Scheme are protected by the double accrual guarantee. This guarantee protects the ‘double accrual’ they would have expected to get for working over 20 years, and is set out in legislation. www.legislation.gov.uk The Firefighters’ Pension Scheme (England) (Transitional and Consequential Provisions) Regulations 2015

Double accrual guarantee

In the 1992 Scheme, a firefighter’s pension scheme membership over 20 years is doubled. For example, the pension for a member with 30 years’ service in the 1992 Scheme would be calculated at 40/60ths (20 + 10 + 10). This is more commonly known as ‘double accrual’.

The new regulations give members who move from the 1992 Scheme into the 2015 Scheme a proportion of the double accrual they could have expected to receive had they stayed in the 1992 Scheme. Full continuous pensionable service (that is, before and after membership of the 2015 Scheme) is taken into account to calculate the benefits to be awarded under the 1992 Scheme.

The Firefighters’ Pension Scheme (England only) regulations have introduced a formula in Schedule 2, Part 2, Part 2A (A ÷ 60) x (B ÷ C) x APP to calculate this.

Part 2A - www.legislation.gov.uk The Firefighters’ Pension Scheme (England) (Transitional and Consequential Provisions) Regulations 2015

A = Maximum 60ths a member could have built up to their estimated retirement date had there been no change to the 1992 Scheme

B = 1992 service up to 31 March 2015, or the taper date.

C = Calendar years’ service in both the 1992 and 2015 schemes

APP = Final salary pensionable pay

The member:

  • A firefighter who joins the scheme at 1 April 1999 has 16 years’ service at 31 March 2015.
  • They then build up a further nine years of service in the 2015 Scheme to age 55.
  • Total service = 25 years.
  • So, if there had been no change to the 1992 Scheme, they would have expected their pension to be calculated on 30/60ths.

Example:

(A ÷ 60) x (B ÷ C) x APP

A = 30

B = 16 years in the 1992 Scheme

C = 25

APP = £20,000

(30 ÷ 60) x (16 ÷ 25) x £20,000 = £6,400


Annex F – Notes on Survivors pension

Depending on the scheme you are a member of, a survivor’s pension is paid if, when you die, you are married or have a civil partner or eligible ‘cohabiting partner’ (someone you live with who would be entitled to a survivor’s pension).

The table below shows whether a surviving partner would receive a pension when you die, based on your partnership status and which pension scheme you are a member of.

1992 Scheme

2006 Scheme

Special Modified 2006 Scheme

2015 Scheme

Husband, wife or civil partner only

Yes

Yes

Yes

Yes

Cohabiting partner

No

Yes

Yes

Yes (if the scheme manager agrees)

We have used your partnership status recorded on this statement, as set out in note 1, to decide the survivor’s benefit shown on your statement.

Survivor’s pensions if you die in service

How a survivor’s pension is calculated will depend on which pension scheme you were a member of at the date of your death.

Death in service survivor’s pensions are paid to eligible partners at 50% of the higher-tier ill-health pension that would have been payable.

Under the 2006 and 2015 schemes, if your husband, wife or partner is more than 12 years younger than you there would be a reduction of 2.5% for every year or part of a year over the 12 years, to a maximum of 50%.

Death in service survivor’s benefits for members of the 2015 Scheme with an equivalent 1992 portion of pension are paid under the 2015 Scheme, which means that if you are not married when you die, a cohabiting partner will still be entitled to half of the equivalent 1992 pension as well as the 2015 portion.

We will only pay a survivor's pension to a protected member of the 1992 Scheme if you were married at the date of your death.

Survivor’s pensions if you die after you retire

How the survivor’s pension is calculated will depend on which pension scheme you were a member of at the date you retired. Generally, a survivor’s pension for a husband, wife or partner would be half of the pension that you would be entitled to when you retire.

Under the 2006 and 2015 schemes, if your husband, wife or partner is more than 12 years younger than you, there would be a reduction of 2.5% for every year or part of a year over the 12 years, to a maximum of 50%.

If you die after you retire, and are not married or in a civil partnership, survivor’s benefits for members of the 2015 Scheme who have a 1992 portion of pension are calculated differently to those of the 2006 and 2015 schemes. This is because a survivor’s pension is only paid to a husband, wife or civil partner in the 1992 Scheme but to a cohabiting partner in the 2015 Scheme.

This means if you are not married when you die, a cohabiting partner would be entitled to half of the 2015 pension, but not to half of any 1992 portion of pension, as this is only awarded to husbands, wives and civil partners.

The table below shows survivor’s pension options in the schemes.

Taper-protected and unprotected 2015 members

Note:A transition member is a firefighter who is entitled to a pension in both the final salary scheme (1992 Scheme, 2006 Scheme or Special Modified 2006 Scheme) and the 2015 Scheme.

Transition 1992

Transition 2006

Transition 2006 (Special member)

Transitional benefits

50% of 1992 pension due to husband, wife or civil partner

50% of 2006 pension due to surviving partner

50% of 2006 Special member pension due to surviving partner

2015

50% of 2015 pension due to surviving partner

50% of 2015 pension due to surviving partner

50% of 2015 pension due to surviving partner

Death in Service Lump Sum

1992 Scheme

2006 Scheme

Special Modified 2006 Scheme

2015 Scheme

Death in service lump sum

2 x pensionable pay

3 x pensionable pay

2 x pensionable pay

3 x pensionable pay

More information and the expression of wish form can be found below:

Fire death grant nomination form (pdf)

Fire death grant nomination form notes (pdf)

Nominating a beneficiary

The current rules of the 2006 scheme (which applies to special and standard members of the 2006 scheme) currently require a nomination to be made in order to pay a survivors pension to a qualifying partner.

You may be aware of a recent court case commonly known as ‘Brewster’ which ruled that a nomination form did not need to be in place to pay a qualifying cohabiting partner pension.

The rules of the 2006 scheme are currently being considered, in order to remove the requirement to nominate a partner.

Nevertheless, we consider it prudent for members to record their wishes regarding a surviving partner’s pension, this saves a surviving partner from unnecessary administrative duties at what would be a sensitive time.

Form for nomination of dependant for survivor's pension (pdf)

More information (pdf)


Annex G – Notes on adjustments to your pension

Your pension may be adjusted by any of the following

  1. Actuarial reduction – the figures quoted may be reduced if you take them before your deferred pension age.
  2. Scheme Pays – if you have opted to use Scheme Pays (where you pay an annual allowance charge from your pension scheme), this debit is included on the statement and your figures quoted have been reduced to meet the charge. This will be recalculated when you take your pension.
  3. Pension sharing order – if a pension sharing order or earmarking order following a divorce or a dissolution of a civil partnership applies to your pension benefits, this debit is included on the statement and your figures quoted have been reduced to meet the charge. The amount of the reduction will be recalculated when you take your benefits.
  4. Split pensions – the figures on the statement do not take account of any adjustment that may be made at your retirement to reflect a period at a higher pay. If the split pension applies, it will be calculated when you take your pension.


Annex H – Notes on Pension Growth

Annual Allowance

This is the amount your pension can increase during the tax year without giving rise to a tax charge (although you can carry over three years’ previous unused allowance to offset the charge). Most people will not be affected, but if you have been contributing to the pension scheme for many years or have transferred in a large amount from a previous pension provider and are promoted and your pay increases, you may be affected.

  • Standard Annual Allowance

    The standard annual allowance for 2016/2017 was £40,000 and remains £40,000 for 2017/18

  • Tapered Annual Allowance

    If you have taxable income over £150,000 you may be subject to a tapered annual allowance of between £40,000 to £10,000.

To calculate your annual allowance for the scheme year, you must multiply your pension growth by 16.

Example

Annual pension at 6th April 2016 = £35,000

Annual Pension at 5th April 2017 = £38,000

Pension Growth = £38,000 - £35,000 = £3,000 * 16 = £48,000

For the purposes of this statement your pension growth has been calculated using your pensionable pay at 31st March. If this amount is near to the £40,000 standard allowance or within £5000 of your individual tapered allowance, a calculation of your pension input period amount using your pay as at 5th April will be sent automatically.

You can find more information, including an annual allowance checking tool, on the Government’s website www.gov.uk Tax on your private pension contributions

Lifetime Allowance

The lifetime allowance reduced to £1 million from April 2016 and from April 2018 is £1,030,000.00. The lifetime allowance is the maximum amount of pension savings you can have before a tax charge is made. To calculate how much of your lifetime allowance you have used, multiply your annual pension by 20, divide this by the lifetime allowance and multiply by 100.

Example

  • Lifetime allowance 2015/2016 = £1.25 million

    Annual pension at 31 March 2016 = £35,000 x 20 = £700,000 ÷ £1,250,000 x 100 = 56% of lifetime allowance used.

  • Lifetime allowance 2016/2017 and 2017/2018 = £1 million

    To show the effect of the lifetime allowance reducing to £1 million from April 2016, the same pension figure would change the lifetime allowance used, as follows.

    Annual pension = £35,000 x 20 = £700,000 ÷ £1,000,000 x 100 = 70% of lifetime allowance used.

You may choose to protect your lifetime allowance if it was £1 million or more at 5 April 2016 by taking Individual Protection 2016 (IP 2016). For more information, you should get independent financial advice.



Explanation of terms

  1. Career Average Pension

    Career Average Pension is the pension built up in the 2015 scheme.

  2. Commutation Factors

    A commutation factor, as shown in the table below, is applied to the part of the pension you give up to calculate the amount of the lump sum.

    1992 Scheme

    2006 Scheme

    Special Modified 2006 Scheme

    2015 Scheme

    Commutation factors

    Calculated by the scheme actuary and subject to regular review

    12:1

    Annex ZA of 2006 regulations

    12:1

    Annex ZA Firefighters’ Pension Scheme (England) Order 2006 - www.legislation.gov.uk The Firefighters’ Compensation Scheme and Pension Scheme (England) (Amendment) Order 2015

  3. Deferred Pension Age

    1992 Scheme

    2006 Scheme

    Special Modified 2006 Scheme

    2015 Scheme

    Deferred pension age

    60

    65

    60

    State Pension age

  4. Final Salary Scheme Pension

    For the purposes of these notes, final salary scheme pension is any pension built up in the 1992 scheme, the 2006 scheme, or the modified version of the 2006 scheme.

  5. Normal Pension Age

    1992 Scheme

    2006 Scheme

    Special Modified 2006 Scheme

    2015 Scheme

    Age 55, or 30 years’ service, whichever happens first

    60

    55

    60

  6. Pension Input Period

    This is the period over which the pension growth is measured and is always 6th April to 5th April for all pension schemes. Pension Input Period is commonly abbreviated to PIP.

  7. Pension Growth

    For defined benefit schemes like the Firefighters Pension Scheme, the pension growth is the measurement of the increase in pension during the PIP multiplied by a flat factor of 16

    Example

    Annual pension at 6th April 2016 = £35,000

    Annual Pension at 5th April 2017 = £38,000

    Pension Growth = £38,000 - £35,000 = £3,000 * 16 = £48,000

  8. Protected member

    A protected member is somebody who is protected by legislation to stay in the existing final salary scheme (1992, 2006 or Special Modified 2006 Scheme), and so will not move into the 2015 Scheme.

  9. Revaluation Order

    The revaluation order for the Firefighters Pension Scheme is based on average weekly earnings.

    The revaluation order is applied to the closing balance of the career average pension on 1st April of each year

    Scheme Year

    Revaluation Order

    2015/2016

    2%

    2016/2017

    2.6%

  10. Scheme year

    The scheme year runs from 1st April to 31st March.

  11. State Pension Age

    State pension age can be calculated here: www.gov.uk Check your State Pension age

  12. Taper Protected Member

    A taper-protected member is somebody who is not protected by legislation to stay in the final salary scheme (1992, 2006 or Special Modified 2006 Scheme), and so will move into the 2015 Scheme at some point between 24th May 2015 and 31st March 2022, depending on their age.

  13. Unprotected Member

    An unprotected member is somebody who is not protected by legislation to stay in the final salary scheme (1992, 2006 or Special Modified 2006 Scheme), and so was compulsorily moved into the 2015 Scheme on 1st April 2015.