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Firefighters 2015 scheme
Pension statement:
Members who joined from 1 April 2015

Notes to the statement – Pure 2015

  1. Your partnership status reflects our current records. If we don’t hold your partnership status for the purposes of these calculations we have assumed you are married. Your partner’s pension will be calculated based on your partnership status at the date of your death.

    The table below shows whether a surviving partner would receive a pension if you died in service (based on your partnership status).

    2015 Scheme
    Husband, wife or civil partner only Yes
    Cohabiting partner (someone you live with who would be entitled to a survivor’s pension) Yes (if the scheme manager agrees)

  2. This is the fire and rescue authority who you were employed by at the statement date.

  3. This is the date you joined the 2015 Scheme

  4. This is the Firefighters Pension Scheme you are a member of at the date of this statement.

  5. This is the total current value of your pension benefits in this employment if you left the scheme at the statement date, and which would be paid at the deferred pension age that applies to the 2015 scheme, as shown in the table below.

    2015 Scheme
    Deferred pension age State pension age

    This value does not take into consideration any adjustments that may be made for the following.

    1. Actuarial reduction – the figures quoted may be reduced if you take them before your deferred pension age as above.
  6. The current value of the death in service lump sum has been based on the scheme you are a member of at the statement date, as shown in the table below.

    2015 Scheme
    Death in service lump sum 3 x pensionable pay

  7. This is the current value of survivor’s benefits due if you die as an active member of the scheme at the statement date, based on your partnership status as explained in note 1.

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

    Under the 2015 scheme, 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 those 12 years, to a maximum of 50%.

  8. These are the nominated beneficiaries as held on your record. (A nominated beneficiary is the person you have chosen to receive your death in service lump sum.) A death grant expression of wish form can be found here.

  9. The CARE 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 1st April to 31st March.

    If you have been on reduced or no pay due to sickness, injury, child-related absence or reserve forces service leave this should include your assumed pensionable pay (APP) for those periods.

    Please contact your Fire & Rescue Service directly if you have any questions about pay, including what is included in your CARE pensionable pay.

  10. Earned pension is the amount of pension for have been awarded for the current scheme year. This is 1/59.7th of your CARE pensionable pay.

  11. If you have chosen to pay additional pension benefits, this is the current value of the additional pension benefits bought during the current scheme year.

  12. This is the value of any benefits you opted to transfer into the 2015 Scheme from another pension provider during the current scheme year.

  13. This is the total value of your 2015 pension built up in the scheme since joining.

  14. The 2015 Scheme pension will be increased by a revaluation order each year on 1st April. The revaluation order for the Firefighters Pension Scheme is based on average weekly earnings. For the 2015/2016 year, the increase was 2% and for 2016/2017 will be 2.6%.

    Your pension statement will include the revaluation due on 1 April at the start of the ‘Scheme Year’ but will not include the one due the day after the statement date. This adjustment will be reflected in next year’s benefit statement

  15. Your estimated pension is based on the NPA (normal pension age) of the scheme, as below.

    2015 Scheme
    60

  16. This is the total value of your estimated benefits at your normal pension age in the 2015 Scheme.

    This value does not take into consideration any adjustments that may be made for the following.

    1. Reduction made by the scheme actuary – the figures quoted may be reduced if you take them before your normal pension age as shown above.
  17. 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 CARE pensionable pay for the current scheme year.

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

    Example

    Sarah’s pensionable pay for the scheme year 1st April 2015 to the statement date was £34,160.

    Sarah’s date of birth is 25th May 1972. Sarah moved into the 2015 Scheme as an unprotected member on 1st April 2015 and will reach normal pension age (age 60) on 25th May 2032.

    Her 2015 Scheme pension built up from 1st April 2015 to the statement date is £34,160 x 1 ÷ 59.7 = £571.69, plus service from 1st April 2016 to 24th May 2032 (last day of service) of 19 years and 54 days multiplied by £34,160 x 1 ÷ 59.7, equals a total estimated pension of £11,518.38

  18. You can exchange part of your pension (up to 25%) for a lump sum. 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.

    2015 Scheme
    Commutation factors 12:1

  19. A survivor’s pension is 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).

    Cohabiting partner

    You can nominate a dependent partner for a survivor pension. A pension can be paid to your partner even if you are not married or in a Civil Partnership if certain conditions are met. More information and the declaration form can be found here.

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

    Survivor’s pensions if you die in service

    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 2015 scheme, 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%.

    Survivor’s pensions if you die after you retire

    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 2015 scheme, 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%.


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/en/articles/choosing-a-financial-adviser

Note on the regulations

The benefits in this statement have been calculated under the Firefighters Pension Scheme Regulations as at August 2017.

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

Pension growth – tax implications

Annual Allowance

The annual allowance for 2016/2017 is £40,000. 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. You can find more information, including an annual allowance checking tool, on the Government’s website www.gov.uk/tax-on-your-private-pension/annual-allowance

What is the Tapered Annual Allowance?

From 6 April 2016, the Annual Allowance is tapered for members who have a ‘Threshold Income’ in excess of £110,000, and ‘Adjusted Income’ in excess of £150,000. For every £2 that your Adjusted Income exceeds £150,000, your AA is tapered down by £1 (to a minimum of £10,000).

Definition Limit
Threshold Income Broadly your taxable income after the deduction of your pension contributions (including AVCs deducted under the net pay arrangement) £110,000
Adjusted Income Broadly your threshold income plus pensions savings built up over the tax year £150,000

Threshold income includes all sources of income that are taxable e.g. property income, savings income, dividend income, pension income, social security income (where taxable), state pension income etc.

Please note, you are not allowed to deduct from taxable income any amount of employment income given up for pension provision as a result of any salary sacrifice made on or after 9 July 2015.

More information about this can be found at our website at www.wypf.org.uk/allowances

Lifetime Allowance

The lifetime allowance for 2016/2017 is £1,000,000.00. 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 2016/2017 = £1million
  • The assessment of your FPS pension benefits against the lifetime allowance is, 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 £1million or more at 5 April 2016 by taking Individual Protection 2016 (IP 2016). For more information, you should get independent financial advice.

More information about this can be found at our website at www.wypf.org.uk/allowances


Sample pension statement (pdf)

Back to 2015 pension statement index