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Firefighters 2006 RDS modified scheme
Pension statement notes:
2006 RDS Modified taper protected member

2006 RDS Modified taper protected

  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).

    2006 RDS Modified 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 eligible

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

  3. This is the date you will join the 2015 Scheme

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

  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 scheme you are a member of at the date of this statement, as shown in the table below.

    2006 RDS Modified Scheme

    Deferred pension age

    60


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

    1. a. Scheme Pays – if you have opted to use Scheme Pays (where you pay an annual allowance charge from your pension), the figures on the statement include the reduction to your pension benefits to meet the charge. This is the current unadjusted value.
    2. b. 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 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. a. 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. b. 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.

    2006 RDS Modified Scheme

    Death in service lump sum

    2 x pensionable pay

  7. This is the current value of survivor’s benefits due if you die as an active member of the scheme on 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. 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 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 at 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).

  10. 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.

    2006 RDS Modified Scheme

    Deferred pension age

    60


    The current value of benefits for the final salary 2006 RDS Modified 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.

    2006 Modified Scheme 2006 Standard Scheme

    Accrual Rate

    1/45th

    1/60th


    If you have paid the cost of joining the RDS Modified Scheme in full then the whole of your service will be used to calculate a 1/45th pension.

    If you are paying the cost monthly then this calculation will include the amount of mandatory special service you have bought at 31/03/2016 at 1/45th plus your standard 2006 scheme service at 1/60th.

  11. Your final salary pension may include an amount relating to additional pension benefit (APB).

    Please see APBs for more details on APBs.

  12. Your projected pension is based on the NPA (normal pension age) of the 2015 scheme, as below.

    2006 RDS Modified Scheme 2015 Scheme

    55

    60


    RDS Modified taper-protected members

    Taper-protected members with benefits built up in the 2006 RDS Modified Scheme can retire and take their RDS Modified pension at the retirement age for that 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.

  13. This is the total current value of your estimated benefits at your normal pension age, as explained in note 11. This assumes that the cost of joining the RDS Modified Scheme has been paid in full.

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

    1. a. 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. b. 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 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. c. 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. d. 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.
  14. The estimated value of the 2015 Scheme pension is calculated based on the 2015 pension built up to from the date you will move into the 2015 Scheme to your normal pension age (age 60), multiplied by 1/59.7th of your actual 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.

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

    Taper-protected 2006 RDS Modified Scheme members

    The whole of your membership of the 2006 RDS Modified Scheme up to the date you will join the 2015 scheme is used in this calculation. The whole of the service is calculated at 1/45th as it assumes the cost of joining the 2006 RDS Modified Scheme has been paid in full.

  16. 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.

    2006 RDS Modified Scheme

    Commutation factors

    In line with Annex ZA of 2006 regs

  17. 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).

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

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

    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 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%.

  18. 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



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 - 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.

2006 Scheme and 2006 RDS Modified
Husband, wife or civil partner only Yes
Cohabiting partner Yes, if eligible

Cohabiting partner

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 2006 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 2006 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%.


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.



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 – 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.