Final Salary Public Sector Pension Help

Fireman_Sam_3

Hello all

I'm a fireman in the New Firefighters Pension Scheme and I'm after some help on how my pension is calculated please.

I understand the pension, accrual rate and commutation but I don't understand how the pension increases from now till my retirement in approximately 27 years.

If I remain on my current salary until I retire and the scheme has an accrual rate of 1/60 I can work out my pension but surely it will increase somehow in the 27 working years I have left otherwise it won't be very much.

Also I have heard about double accrual in last years but don't know what this means.

Please can someone shed light on this, many thanks.

molerat

You earn 1/60th of your salary per year worked so after 40 years you would get 40/60ths so £18k per year if your salary stayed at £27k. The amount used for reference is the average of the last year of service but the average of the highest of the last 3 years can be used if it gives a better pension. If you only serve 20 years you would get 20/60ths of your last work year, increased by annual inflation, at retirement age.

See here for the details http://www.communities.gov.uk/fire/firerescueservice/firefighterpensions/newfirefighterspension/formsguidance/

Cannot see anything about double accrual mentioned.

BobQ

Fireman_Sam wrote: »

Hello all

I'm a fireman in the New Firefighters Pension Scheme and I'm after some help on how my pension is calculated please.

I understand the pension, accrual rate and commutation but I don't understand how the pension increases from now till my retirement in approximately 27 years.

If I remain on my current salary until I retire and the scheme has an accrual rate of 1/60 I can work out my pension but surely it will increase somehow in the 27 working years I have left otherwise it won't be very much.

Also I have heard about double accrual in last years but don't know what this means.

Please can someone shed light on this, many thanks.

As I understand it the pre 2006 FPS is the one that is based on a 30 year pension and you can double accrue in the final 10 years. So after 20 years each year count as as two years. So the maximum pension is 40/60 of final salary.

You say you are in the NFPS which I think does not have double accural. Your pension is based on 1/60ths for each year as explained in the first response. The maximum is 45/60 of FS.

It seems unlikely that your salary will be unchanged in 27 years time. If this were the case your pension would be based on this FS although there is usually a means of basing it on the best of the last few years. Its more likely that you will have cost of living increases in that time in which case it would be based on that salary.

You say it does not seem very much, but it is roughly half pay if you work for a further 27 years.

That said the scheme will probably change in the near future.

Fireman_Sam_3

Thanks to you both for the replies which have helped a great deal.