Fire service pension. Defer or transfer??

Coq_Au_Vin

Hello all, I currently have 9 years of a fire service pension and am about to be moved onto whatever the new scheme will become. I don't really fancy the new pension as I don't think I'll be able to complete 40 years of fire-fighting and with any pension there is no guarentee the goal post wont be moved again.

So here comes my main question..... if I defer my current pension it will only be available to me at the age of 60 which is fine.....UNLESS they change the age its defered untill. Can they do this to a defered pension? Does anybody know?

I did ask for a forecast and the above question of my pensions department in September but they are still getting back to me and in 5 weeks my pension is due to be changed to an unknown scheme so I need an answer quicker.

Thanks everybody remember to check your smoke alarms!!!

Yorkie1

I am not familiar with the particular provisions of the fire scheme, but the changes re. retirement ages which are being made to the civil service schemes will affect only the pension accrued since the date of change. So, pension accrued before the change date can be taken at the age applicable at the time (often 60), and the later pension can only be taken at the later age (state pension age).

IF that logic is applied to the fire service scheme, then you'll be able to take the pension relating to your 9 years' service at 60, and the rest of the pension at the new age (whatever that is for you).

Are you considering transferring out to a non-final salary scheme? If so, I think in general that is usually a really bad idea and, I think, you will find it difficult to get an IFA to sign off the transfer (this is needed if I recall correctly).

Hopefully others will be along to confirm or correct what I've written.

Deneb

I'm not a firefighter and therefore not fully familiar with the situation regarding your pensions schemes, but have recently retired in another emergency services scheme.

My understanding of your scheme though, is this:

With 9 years accrued pension to date I assume you are a member of the Firefighters Pension Scheme (aka the 1992 scheme) and not the New Firefighters Pension Scheme? That being the case, you have a right to retire at the age of 50, or at whatever age you will have completed 25 years service, if you have less than 25 years service at 50 years of age.

If you were a member of the FFPS on 6th April 2006, then you have a protected pension age of whatever age you can take those benefits (50 or on completion of 25 years service as described above).

I may be wrong, and willing to be corrected, but I don't believe that you are being forced to enter a new pension scheme, just being asked to contribute a greater percentage of your salary into the existing scheme for future years? That being the case I don't see why you would want to leave and defer your pension.

In any case, the government have said that they are committed to protecting existing pension rights accrued to date, and for someone who was a member of your scheme on 6th April 2006, that should include your right to retire at the same age, as your scheme is a prescribed pension scheme under the Prescribed Pension Schemes and Occupations Regulations, and you cannot lose your Protected Pension Age, even should it be changed at a future date for new entrants, who would have to join the New Firefighters Pension Scheme anyway.

atush

Do not leave your scheme.

Whatever the changes to come, it is 100% better than anything you would be able to arrange privately. It will still be a Defined Benefit scheme and the difference between FS and Average salary (if that is the case with the fireservice) then it will not affect you very much- it mainly will affect those from your profession who move up the ranks of administration and make the big bucks.

Your scheme will still be better than anything out there in the private pension world. So, if you leave it- it will be the worst mistake of your working life. You should keep paying in an enjoy a comfortable retirement.

sheffield_lad

Oh dear public sector workers still don't get it.

Real world = dire pension or putting in the equivalent of 25-30% of your wage to get the same pension as you are already in. Pity the unions didn't explain the pension situation better to it's members instead of just telling them how bad a deal they are getting.

Deneb

The Government remains committed to providing a form of defined benefit pension to firefighters based on service and pay. The Government has also committed to protecting accrued rights for firefighters in the current pension scheme.

Firefighters already putting money into a pension fund will be able to take the pension they accrued at their final salary, and at the retirement ages set out in their current scheme. New schemes are not expected to be introduced until 2015, and so anyone leaving the scheme before then will not be affected.


The Department for Communities and Local Government is consulting on the following key proposed changes to the firefighters' pension schemes in England:

• increased levels of employee contribution rates, effective from 1 April 2012
• the introduction of tiered contribution levels, so that higher earners will pay a higher rate of contribution
• different levels of increase for the Firefighters' Pension Scheme (1992) and New Firefighters' Pension Scheme (2006)
• the specific handling of contributions for retained and part-time firefighters.

http://www.communities.gov.uk/fire/firerescueservice/firefighterpensions/reform/

mgdavid

Do NOT transfer it out.

dunstonh

Leaving the scheme would be short sighted and stupid. Nothing else will beat it even with the proposed changes. It is still better than anything that the private sector could offer you.

Coq_Au_Vin

Yorkie1 wrote: »

I am not familiar with the particular provisions of the fire scheme, but the changes re. retirement ages which are being made to the civil service schemes will affect only the pension accrued since the date of change. So, pension accrued before the change date can be taken at the age applicable at the time (often 60), and the later pension can only be taken at the later age (state pension age).

IF that logic is applied to the fire service scheme, then you'll be able to take the pension relating to your 9 years' service at 60, and the rest of the pension at the new age (whatever that is for you).

Are you considering transferring out to a non-final salary scheme? If so, I think in general that is usually a really bad idea and, I think, you will find it difficult to get an IFA to sign off the transfer (this is needed if I recall correctly).

Hopefully others will be along to confirm or correct what I've written.

Thanks for the help.

The old scheme will cease and I can either transfer to the new scheme or defer. The new scheme(which was the only one I would consider transferring to) is career average, which is still good but the problem is I don't think I will be able to complete a total of 40 years and in the small print of the new scheme if I left after 36 years the monthly payments are reduced by 40% so there won't be many people getting the full pension.

Coq_Au_Vin

howee wrote: »

Oh dear public sector workers still don't get it.

Real world = dire pension or putting in the equivalent of 25-30% of your wage to get the same pension as you are already in. Pity the unions didn't explain the pension situation better to it's members instead of just telling them how bad a deal they are getting.

I do get it howee, I have worked in the private sector for as long as I worked in the public sector, I have pensions from both. My question was about the defered age of my pension, If you have any information on this it would be great, If not general comments insinuating you are smarter than all the thicko public sector workers might make you feel grown up but don't really help.

lee1983

Hi, i am in a similar position to coq au vin, i have 7 years in the 92 fps but i am under 30. To clear a few things up if you defer your pension it is frozen until your 65 not 60. For those who retire in the next 10 years there pension will be honoured regarding age and commutation.

As for the arguments regarding public sector versus private pensions i can't be bothered to get into arguments. The FPS is a good pension and optional therefore i shouldn't be criticised for joining it.

in regards to some of the comments the changes to the new pension scheme will be implemented in 2015, but increased contributions will take effect from April 2012 going up annually until 2015, retirement age will increase to 60 from April 2012 and final salary pension will cease from April 2012. The latter 2 i can accept, but i will not be paying increased contributions of £900 a year which will go straight into the government pot.

I agree with others here, don't transfer it out. I will defer mine out of principle , I'm not paying more money to the government purely for having a public sector pension. But this is also due to my age i will invested my money in something else.