Retained Modified Scheme
The exclusion of retained firefighters from the Firefighters’ Pension Scheme 1992 was challenged under the Part-Time Workers (Prevention of Less Favorable Treatment) Regulations 2000. As a result a settlement was reached allowing retained firefighters, with service between 1 July 2000 and 6 April 2006, to have “special” membership of Firefighters’ Pension Scheme 2006 based on their employment during this time period.
To implement this settlement the Modified Scheme was created providing retrospective benefits for those eligible to join who elect for special membership, and who pay the appropriate contributions.
If the Modified Scheme applies to you, as you were a retained firefighter between 1 July 2006 and 6 April 2006, Shropshire and Wrekin Fire Authority will have informed you of your entitlement and your options under the scheme.
The following pages provide information for those members who were eligible to join the Modified Scheme.
Benefits available as a member of the Retained Modified Scheme
The benefits available in the Retained Modified Scheme are comparably to both the 1992 and 2006 schemes. The Retained Modified Scheme is technically an add on to the 2006 Scheme but many of the benefits such as the retirement age are reflective of the 1992 Scheme to which these members would have been able to join had the Scheme been extended to retained members.
The main benefits of the Modified Scheme are as follows:
- an accrual rate of 1/45th
- a normal pension age of 55
- a deferred pension age of 60
- fixed commutation factors which reflect those in the 1992 Scheme as at 1 April 2014
- contribution rates to be set in accordance with the 1992 Scheme
- a death grant of 2 times pensionable pay for active members
- a time limited retrospective death grant of 2.5 x pensionable pay for those retained firefighters who would have been eligible to be members but died before 6 April 2006
- the option to purchase additional 1/45ths of pensionable service
- the option to convert 2006 Scheme service to service in the Modified Scheme
- the option to transfer in qualifying pension benefits within 12 months of being eligible to join the Scheme
- ill-health retirement benefits in accordance with the 2006 Scheme
- the payment of a retrospective ill-health pension for those retained firefighters who left service due to ill-health during the period 1 July 2000 and 5 April 2006 inclusive
- the abatement of pensions on re-employment following retirement
How is my membership worked out?
If you are a retained firefighter, your membership is worked out with reference to your pay. The pensionable pay that you have actually received for a scheme year is compared with the full time equivalent rate (Full Time Equivalent) of pay for your role.
A retained firefighter has worked for 3 years, from 1 April 2007 to 31 March 2010. The full time equivalent level of pay for his/her role over the same 3 year period is:
- 1 April 2007 to 31 March 2008 > £24,000
- 1 April 2008 to 31 March 2009 > £26,000
- 1 April 2009 to 30 March 2010 > £28,000
The actual pay received by the firefighter was:
- 1 April 2007 to 31 March 2008 > £6,500
- 1 April 2008 to 31 March 2009 > £4,000
- 1 April 2009 to 30 March 2010 > £8,500
The pensionable service is then calculated as:
- 1 April 2007 to 31 March 2008 > £6,500 / £24,000 = 27.08% of a year
- 1 April 2008 to 31 March 2009 > £4,000 / £26,000 = 15.38% of a year
- 1 April 2009 to 30 March 2010 > £8,500 / £28,000 = 30.36%of a year
Total pensionable service = 0.7282 of a year
If you work part time your rate will be based on the full time rate in relation to the duties of the role. This means that although you will only pay contributions on the pay that you actually earn, your contribution band will be based on the full time equivalent annual salary for your post.
Pension contribution pay bands 2018/19
|Pensionable Pay Band||Contribution Rate|
|Up to and including £15,609||11.00%|
|More than £15,609 and up to and including £21,852||12.2%|
|More than £21,852 and up to and including £31,218||14.2%|
|More than £31,218 and up to and including £41,624||14.7%|
|More than £41,624 and up to and including £52,030||15.2%|
|More than £52,030 and up to and including £62,436||15.5%|
|More than £62,436 and up to and including £104,060||16.0%|
|More than £104,060 and up to and including £124,872||16.5%|
|More than £124,872||17.0%|