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Firefighters 2015 scheme
Pension statement:
Members who moved from the 1992 scheme

Notes to the statement – 1992/2015 members

  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).

    1992 Scheme 2015 Scheme
    Husband, wife or civil partner only Yes Yes
    Cohabiting partner (someone you live with who would be entitled to a survivor’s pension) No 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 each scheme you are a member of at the date of this statement, as shown in the table below.

    1992 Scheme 2015 Scheme
    Deferred pension age 60 State Pension age

    This value has been reduced to take into consideration any adjustments that may be made for the following.

    1. Scheme Pays – if you have opted to use Scheme Pays (where you pay an annual allowance charge from your pension scheme), the figures on the statement include the reduction to your pension benefits to meet the charge. This is the current unadjusted value.
    2. Pension sharing order – if a pension sharing order following a divorce or a dissolution of a civil partnership applies to your pension benefits, the figures on the statement do take account of the reduction to your benefits made by the order.

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

    1. Earmarking order – if an earmarking order following a divorce or a dissolution of a civil partnership applies to your pension benefits, the figures on the statement do not take account of the reduction to your benefits made by the order. The amount of the reduction will be calculated when you take your benefits
    2. 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.
  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.

    Please see Annex – Survivor for more information on survivor benefits.

  8. The Final Salary Pay (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’ ending on the statement date.

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

  9. The current value final salary pension is the pension that is due if you left the scheme on the statement date and would be paid at the deferred pension age, as shown in the table below.

    1992 Scheme
    Deferred pension age 60

    Please see Annex – Current benefits for examples of how this has been calculated.

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

    Please see Annex – APBs for more details on LSI and APB.

  11. 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 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.

  12. 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

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

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

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

  16. 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%

    However, this statement at 31st March 2016 does not include revaluation as it is not due until the following day (1st April 2016), and this will be reflected in next year’s benefit statement.

  17. Your projected pension is based on the NPA (normal pension age) of the 2015 scheme. The NPA of both schemes are shown below.

    1992 Scheme 2015 Scheme
    Age 55, or 30 years’ service, whichever happens first 60

    1992 unprotected

    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 2015 Scheme pension could then be paid early, from age 55, reduced as appropriate.

    Please see Annex – Early retirement for more details on early retirement.

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

    This value has been reduced to take into consideration any adjustments that may be made for the following.

    1. Scheme Pays – if you have opted to use Scheme Pays (where you pay an annual allowance charge from your pension scheme), the figures on the statement include the reduction to your pension benefits to meet the charge.
    2. Pension sharing order – if a pension sharing order following a divorce or a dissolution of a civil partnership applies to your pension benefits, the figures on the statement do take account of the reduction to your benefits made by the order.
    3. This value does not take into consideration any adjustments that may be made for the following

    4. Earmarking order – if an earmarking order following a divorce or a dissolution of a civil partnership applies to your pension benefits, the figures on the statement do not take account of the reduction to your benefits made by the order. The amount of the reduction will be calculated when you take your benefits
    5. 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.
  19. The estimated value of the 2015 Scheme pension is calculated based on the 2015 pension built up to from the date you moved into the 2015 Scheme 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.

    Please see Annex – 2015 benefits for an example of how this is calculated.

  20. This is the estimated value of your final salary pension based on the service you will accrue to the day before you became a member of the 2015 Scheme.

    Unprotected 1992 Scheme members

    Unprotected members of the 1992 Scheme are protected by the double accrual guarantee. This guarantee protects the ‘double accrual’ you would have expected to get for working over 20 years, and is set out in legislation.

    The formula used to calculate the double accrual guarantee is:

    (A ÷ 60) x (B ÷ C) x APP

    A = Maximum 60ths you could have accrued (built up) to your estimated retirement date had there been no change to the 1992 Scheme

    B = 1992 service up until the date moved into the 2015 Scheme.

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

    APP = Final salary

    Please see Annex – Double Accrual Guarantee for examples of how this has been calculated.

  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 taper-protected 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, 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 2015 Scheme
    Commutation factors Calculated by the scheme actuary 12:1

    The 1992 scheme commutation factors currently in force can be found here.

  22. A survivor’s pension is paid if, when you die, you are married or have a civil partner.

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

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

    However, survivor’s benefits for husbands and wives of members of the 2015 Scheme with a 1992 portion of pension are calculated slightly differently to those of the 2006 and 2015 schemes. See Annex – Survivor for more information.

    Under the 2015 scheme, a survivor pension is also payable to a co-habiting partner. More information about eligible cohabiting partners and a declaration form can be found here.

    Also 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%.

    Details of the service information we hold is shown on the final page of your statement.

    It includes details of your employment with your current Fire & Rescue Service and will show any membership which doesn’t count as pensionable membership. This will include strike, career breaks and absence where you didn’t pay pension contributions. We don’t hold all the information about the latest strike from 2013 to 2015 but this will be taken into account in any actual retirement calculations we do.

    Also shown are details of any transfers in from other pension schemes


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


Annex – Current benefits

The current value final salary pension is the amount due to you if you left the scheme at the statement date and which would be paid at the deferred pension age as shown in the table below.

1992 Scheme 2015 Scheme
Deferred pension age 60* State Pension age

*If you are over age 50 with at least 25 years pensionable service then these benefits can be paid immediately.

As you were a member of the 1992 Scheme, your deferred pension is calculated as a proportion of the 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

Notional service and pension is the service and pension a firefighter would have expected to receive if they had not left the scheme.

Tapered members – example

The calculation for a taper-protected 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 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.

Calculation

His deferred pension calculated at 31st March 2016 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 + 9 years 119 days = 38 years 238 days

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

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



Annex - APBs

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/‌uksi/2013/1392/schedule/paragraph/2/made

  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 – Early Retirement

1992 taper and unprotected members

Taper and 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 2015 Scheme pension would then be due early, from the age of 55.

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%
Wales 9.2% 7.6% 5.9% 4% 2%
Scotland 9.5% 7.9% 6.1% 4.4% 2.1%

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 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%
Wales 46.9% 44.2% 41.3% 38.2% 34.9%
Scotland 47.7% 45% 42.1% 39% 35.6%


Annex – 2015 benefits

2015 Scheme – estimated pension

The estimated value of the 2015 Scheme pension is calculated based on the 2015 pension built up to from the date you moved into the 2015 Scheme to your normal pension age (age 60), multiplied by 1/59.7th of your CARE pensionable pay for the scheme year ending on the statement date.

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.

Example A

Sarah’s pensionable pay for the current scheme year 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 31st March 2016 is £34,160 x 1 ÷ 59.7 = £572.19, plus service from 1st April 2016 to 24th May 2032 (last day of service) of 16 years and 54 days multiplied by £34,160 x 1 ÷ 59.7, equals a total estimated pension of £9,239.76 giving a total estimated pension of £9811.95.

Example B

Gary is a taper-protected member, whose date of birth is 15th July 1969. He will move into the 2015 Scheme on 23rd April 2018.

Gary’s current actual pay at the statement date is £29,345.

His service from 23rd April 2018 to 14th July 2029 is 11 years and 83 days.

His estimated 2015 Scheme pension is calculated as £29,345 x 1 ÷ 59.7 multiplied by 11 years 83 days. This equals a total estimated pension of £5,518.73.

Example C

Mo is a taper-protected member, whose date of birth is 22nd January 1971. He will move into the 2015 Scheme on 6th September 2015.

Mo’s current actual pay at the date of his statement is £31,189.

His 2015 Scheme pension built up from 6th September 2015 to 31st March 2016 is calculated based on 207 days of pay at £31,189 (207 ÷ 365 x £31,189) = £17,688.01 x 1 ÷ 59.7 = £296.28, plus estimated service from 1st April 2016 to 21st January 2031 (last day of service) of 14 years and 296 days multiplied by £31,189 divided by 1 ÷ 59.7 equals a total estimated pension of £8,033.97.


Annex – Double accrual guarantee

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/uksi/2015/589/schedule/3/paragraph/9/made ]

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

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 - Survivor

Survivor’s pension

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 2015 Scheme
Husband, wife or civil partner only Yes Yes
Cohabiting partner No Yes (if the scheme manager agrees)

Cohabiting partner

Once you become a member of the 2015 scheme 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 nomination form can be found here.

We have used your partnership status recorded on your statement, as explained 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 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 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%.

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 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 2015 members

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

Transition 1992
Transitional benefits 50% of 1992 pension due to husband, wife or civil partner
2015 50% of 2015 pension due to surviving partner



Sample pension statement (pdf)

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