Firefighters 1992 scheme – Active
How is a pension calculated?
How the various types of pension are calculated is explained in each section, but there are certain basic principles.
The FPS1992 is a final salary pension scheme which means that your pension will be a proportion of final average pensionable pay. The proportion will depend, in part, upon how much pensionable service you have at the time of leaving the Scheme. For age and ill-health pensions, a principle of "fast accrual" is used. For each of the first 20 years of pensionable service, you will get 1/60th of average pensionable pay and for each of the following years you will get 2/60ths of average pensionable pay. Each day of pensionable service will count as 1/365th of a year. The maximum number of 60ths that you can count is 40 (after 30 years' service). For example, if you retire at age 55 with 30 years of pensionable service and average pensionable pay of £30,000, your pension would be assessed as:
(20 x 1/60) + (10 x 2/60) x £30,000 = 40/60 x £30,000 = £20,000.00 a year
or, if you retire at age 50 after 27 years with the same pay, your pension would be:
(20 x 1/60) + (7 x 2/60) x £30,000 = 34/60 x £30,000 = £17,000.00 a year