Hampshire Fire and Rescue Authority

Personnel Committee Item 10

21 April 2004

Key aspects of the Firemen's Pension Scheme and the Local Government Pension Scheme

Report of the Chief Fire Officer

Contact: Jennifer McNeill - Head of Human Resources Tel: 023 80 644000 ext 2348

1

Summary

A request was made by Members for further information regarding the Firemen's Pension Scheme and the Local Government Pension Scheme.

2

Profile of the Firemen's Pension Scheme Order (FPSO) and The Local Government Pension Scheme (LGPS)

2.1

Information has been obtained from Mr M Crowfoot, Pensions Section, Hampshire County Council and is detailed below:-

Description

FPSO

LGPS

Scheme Type

Unfunded, Statutory, Final Salary, Defined Benefit, Contracted out of SERPS

Funded, Statutory, Final Salary, Defined Benefit, Contracted out of SERPS

Final Pensionable Pay (FPP)

Aggregate of pensionable pay in final year ending with last day of service, or best of last 3 years if better.

Same

Eligibility

Whole time, Aged 18 to Normal Retirement Date

All employees under age 65

Contributions

11%

6%

Additional Voluntary

Contributions

Yes- Purchase of additional service up to 30 years at NRD

Yes- (i) Purchase of additional service up to 40 years at age 60, or

(ii) AVC with Eagle Star

Earliest Retirement Date (ERD)

50 with 25 years pensionable service

60 with 25 years pensionable service

Normal Retirement Date (NRD)

Up to Station Officer = age 55

Above Station Officer = age 60

Age 65

Pension Accrual

1/60^th of FPP to 20 years service plus 2/60ths of FPP above 20 years to a maximum of 40/60ths

1/80^th of FPP per year of service to a maximum of 40/80ths

Lump Sum Accrual

(i) With 30 years, at NRD or Ill Health Retirement by commutation of up to 25% of pension. Lump sum up to 2.5 times final pay.

(ii) Other retirements by commutation to give lump sum of up to 2.25 times pension value

3/80ths of FPP per year of service to a maximum of 120/80ths (1.5 times pay)

Ill Health Retirement enhancement

ENHANCEMENT EQUALS

5 to 10 years service - 1/60th per year of service

10 to 13 years service - period up to 20 years total service

13 years plus - 7/60ths of FPP

Max is lesser of 40 years or to NRD (55 or 60)

ENHANCMENT EQUALS

5 to 10 years service - 1/80^th per year of service

10 to 13and 1/3^rd years - period up to 20 years total service

13 and 1/3^rd Years plus - 6 and 2/3rds years of FPP

Max is lesser of 40 years or to NRD (age 65)

Injury on Duty

In addition to ill health benefits injury allowance payable.

Pension -- between 15 and 85% of FPP less 75% of IH pension and DWP benefits.

Lump Sum - between 12.5 and 50% of FPP

All Non Taxable

Nothing above ill health benefits provided.

Death in Service lump sum

2 x FPP, plus extra if due to injury on duty, plus refund of contributions if no spouse

2 x FPP

Death in Service Pension to spouse

First 13 weeks at members rate of pay then ½ ill health pension.

Enhanced if injury on duty caused death to 45 or 50% of pay

First 3 months at 1/12 members FPP then ½ ill health pension.

Death in Retirement lump sum

None payable

5 years pension less pension received

Death in Retirement Pension to spouse

13 weeks at members rate of pension paid to spouse, followed by ½ of gross members pension plus Pension Increase since retirement.

If due to injury on duty spouses pension increased to 45 or 50% of members pay.

3 months at members rate of pension paid to spouse, followed by ½ of members pension plus pension increase.

Deferred Benefits

Pension = service/60 x 40/60 x FPP

Commutation of up to 25% for lump sum.

Payable from 60 or earlier ill health

Pension = service/80 x FPP

Lump sum = 3x service/80 x FPP

Payable from between 60 and 65.

Childs pension

18.75% of members actual or IH gross pension per child.

Maximum is 37.5%.

Amounts increased if no spouse.

25% of actual or ill health pension per child

Maximum of 50%.

Amounts increased if no spouse

Ill Health less than 12 months to live

No special provision

Commutation of annual pension in excess of GMP for a lump sum.

Refund of contributions

Available with less than 2 years service

Available with under 3 months service provided transfer in not received.

Pensions Increases

Payable to those over 55 plus all retired on ill health, spouses and child's pensions.

Increase based upon increase in Retail Price index.

Same.

3

European Convention on Human Rights and the Human Rights Act 1998

3.1

The proposals within this report are compatible with the provisions of the European Convention on Human Rights and the Human Rights Act 1998 and considered in the light of the Race Relations (amendment) Act 2000.

Recommendation

That the information in this report is noted and that a copy is passed to Members of HFRA Finance and General Purposes Committee for information.

Section 100D - Local Government Act 1972 - background papers

The following documents disclose the facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of the report.

None

NB The list excludes:

1 Published works

2 Documents that disclose exempt or confidential information as defined in the Act

JMcemC/H/HFRA Personnel Committee 21 4 04 Pension 2