Firefighters RDS modified scheme

How is a pension calculated?

How is a pension calculated?

How the various types of pension are calculated is explained in the following section, but there are certain basic principles.

FPS 2006 is a final salary pension scheme which means that your pension (excluding Additional Pension Benefits will be a proportion of final pensionable pay. The proportion will depend, in part, upon how much pensionable service you have at the time of leaving the Scheme. As a special firefighter member, for each year of special pensionable service, you will get 1/45th of final pensionable pay. The fraction of 1/45th reflects the accrual rate for FPS 1992 members. In that Scheme, for each of the first 20 years of service the firefighter would be credited with 1/60th of pensionable pay and for each year between 20 and 30, he/she would be credited with 2/60ths. As part of the pension settlement for retained firefighters, it was decided that the 60th accrual principle contained in FPS 1992 should be reflected in the modified FPS 2006 but based on a uniform accrual principle of 1/45th for each year up to a maximum of 30 years. (This is how a deferred pension would be assessed in FPS 1992.) Each day of pensionable service will count as 1/365th of 1/45th.

For example, if a special firefighter member retires at age 55 with 15 years 28 days of pensionable service and final pensionable pay of £32,000, the pension would be:

15 28/365 x 1/45 x £32,000 = £10,721.22 a year