Firefighter’s Compensation Scheme
The Compensation (Injury) Scheme Order 2006 means that injured firefighters may be entitled to a non taxable injury pension (subject to qualifying conditions) and a Lump Sum Injury Gratuity.
You don’t need to be a member of the Firefighter Pension Scheme to be eligible for an injury award. The following employees and dependents, subject to satisfying the qualifying conditions, could be entitled to receive an injury award:
- whole time/part time firefighter
- retained firefighter
- volunteer firefighter
- other employees of a fire and rescue authority (only in certain circumstances and at the discretion of the authority)
- surviving spouse, civil partner or child of a firefighter
- a dependent relative of a firefighter (at the discretion of the fire and rescue authority)
- firefighters undergoing Reserve Forces Service.
There are different scheme rules and levels of cover depending on whether you are employed as a wholetime firefighter or retained firefighter; and the date that you became employed with the fire service/amount of service accrued.
The different Guides available are:
- Firefighters Compensation Scheme 2006 Guide 1992
- Firefighters Compensation Scheme 2006 Guide 2006
- Firefighters Compensation Scheme Guide for Retained on or after 6th april 2006
- Firefighters Compensation Scheme Guide for Retained prior to 6th april 2006
A Gratuity is calculated based on a percentage of your ‘average pensionable pay’. The percentage is set, according to your degree of disablement as determined by the Independent Qualified Medical Practitioner (IQMP), and then adjusted to reflect any part time service you may have worked during your employment.
The Injury Pension
An injury Pension would be calculated based on a percentage of your ‘average pensionable pay’, according to the degree of disablement determined by an Independent Qualified Medical Practitioner (IQMP) and in addition, the amount of service that you have accrued. It is pro-rated to reflect any part time service you may have worked.
The Injury Pension Award is then reduced by the following:
- 75% of your pre commuted annual ill health pension, where applicable, paid as a result of your injury under the FPS / NFPS. If you have opted out of the NFPS, the percentage deducted would be 100%.
- certain state benefits* that you are entitled to from the Department of Work and Pensions (DWP) that relate to the relevant injury (currently Employment Support Allowance (replacing incapacity benefit) and Industrial Injuries Disablement Benefit).
Please be aware that an injury pension qualifies as an underlying minimum income guarantee which is payable to ‘top up’ any DWP benefits that you may be entitled to, ensuring that a employee receives the determined minimum income level. In some cases, your DWP benefits will exceed the injury pension minimum guarantee, which would mean the injury pension will not be payable. A claim for relevant DWP benefits must be made and if no claim has been made, the maximum rate of benefit must be assumed and deducted in line with the Compensation Scheme Order 2006, unless written confirmation from the DWP is provided to confirm otherwise.