Matthews (2nd Option) Case

I was not in the pension scheme at the time. Am I still eligible?

Yes.

This exercise is open to anyone who was a retained firefighter at any time during the period 7 April 2000 to 5 April 2006, whether you joined the pension scheme or not. 
If you did not join the pension scheme at the time, this just means that you will have the option to buy all of your service up to the date you left or 31 March 2015, whichever is the later.

I am already over the age of 60. How will I be affected?

Eligible members aged 60 or over may be entitled to receive their pension immediately, including arrears where applicable. Your pension benefits can be confirmed once the option process has been completed, at which point you will also be told whether you owe any contributions to the pension scheme.

How can I pay for the pension benefits?

You can pay for your pension benefits with a one-off lump sum. If you haven’t retired yet, you may also have the option to pay through monthly instalments.

Full details of how you can pay for your pension benefits and the costs involved will be included in your information pack.

Can I use part of my pension lump sum to meet the cost of contributions?

Yes.

You can choose to take part of your pension as a lump sum and use this to pay some or all of the contributions you owe towards your historic pension benefits.

What happens if my historic pay records are unavailable?

In cases where complete historic pay records do not exist, calculations will be made using nationally agreed assumptions and methods for estimating missing information. However, where members hold relevant evidence, such as payslips or P60s, we may be able to use this information instead in accordance with the scheme rules.

How is my retained service calculated?

Depending on the information available, your retained service will be calculated using:

• the period during which you were serving as a retained firefighter
• earnings for each year of eligible service which you could count as pensionable if a scheme member
• the earnings of a wholetime firefighter in a similar role and with similar service. This is known as reference pay.

I was a member of FPS 2006; can I convert my Modified FPS 2006 service to FPS 2006 membership?

It will depend on the status of your membership, if you are a member or Pensioner, conversion is possible. This is not the case for Deferred members.

If you joined FPS 2006 from 6 April 2006 and are eligible to join the modified FPS 2006, you may be able to convert any service accrued before 6 April 2006 to your FPS 2006 membership.

SFRS have received many responses, however, there is still an opportunity to return the form. If you wish to do so, you can select this option on the Expression of Interest form from SFRS and, at the same time, declare your interest in joining/paying for additional eligible service in the modified scheme.

I was part of the First options exercise and want to change my conversion choice, can I do this?

Yes.

You can choose this option when you receive the Expression of Interest form from SFRS at the same time as declaring your interest in paying for additional eligible service in the modified scheme.

Am I going to pay more in contributions?

You have the choice about joining the Modified FPS 2006. This will impact how much you will have to pay in terms of contributions.

All the information you need to make a choice will be provided in an options pack.

The choice is individual, and how much you stand to receive and how much you will have to repay towards contributions will be important to consider when you make your choice.

Will I need to pay any arrears in pension contributions?

If you choose to join the Modified FPS 2006 or to pay for more service, and you were part of the first options exercise, you will need to pay the outstanding historic employee contributions before you receive any benefits.

Arrangements will be made to collect these contributions by lump sum or by instalment.

Will I receive tax relief on the contributions I pay back?

The regulations allow for tax relief to be deducted from the cost of purchasing historic service under the Mathews second options exercise. The tax relief which is awarded is based on the basic taxation rates which applied during your historic period of membership.

Additionally, there is a provision in the regulations that allows for additional tax relief to be awarded where robust evidence is supplied which shows that you were a higher rate taxpayer during the historic period of membership.

Will there be Interest payments?

Yes.

Interest will be applied to any arrears of pension benefits. You will be given an estimate of the interest that may be due in your options pack.

Is there interest due on money I owe to the scheme?

Yes.

Interest will be applied to the arrears of contributions due. You will be given an estimate of the interest that may be due in your options pack.

Why can’t I join the Firefighters Pension Scheme 1992 (FPS 1992)?

Backdated membership of the FPS 1992 could not be given as that scheme is now closed. The FPS 2006 was ‘modified’ to have special provisions that generally reflect the rules of the FPS 1992.

I have service before 7 April 2000, can I purchase this as well?

If you were employed as a retained firefighter between 7 April 2000 and 30 June 2000 you will be able to have any continuous retained service before and including 7 April 2000 counted as pensionable service if purchased.

What is continuous retained service?

This is service that has no breaks/gaps whilst employed as a retained firefighter. If you were a retained firefighter, left to become a wholetime firefighter and then returned as a retained firefighter or both a wholetime and retained firefighter, the service as a wholetime firefighter would count as a break in retained service.

My Spouse/partner was a member of the firefighters’ pension scheme – why are you contacting me?

Some beneficiaries are eligible to a death grant and/or an additional death grant.

I left the scheme due to ill health – how am I affected?

If you became permanently disabled from undertaking your role as a firefighter, prior to 2006, and join the modified scheme you may now be eligible to apply for an ill-health pension.

I am in receipt of an injury pension – how will this affect me?

The protected right for those firefighters with unbroken retained employment from before 6 April 2006, who suffer a Qualifying Injury, to be treated as whole time regular firefighters was removed on 1 April 2014. The removal of this protected right will not affect those former retained firefighters currently in receipt of injury and ill-health pensions or for those cases where the Qualifying Injury occurred prior to the date that the protected right is removed i.e.,-1 April 2014.

Scenario one

Question: Individual was a retained firefighter from June 1991 to February 1995 then in February 1992 transferred to another FRA as a wholetime firefighter. They were in employment as of 7 April 2000 but not as a retained firefighter, are they in scope?

Answer: Individual is not in scope as they were not in retained employment on 7 April 2000.

Scenario two

Question: Individual was employed as a retained firefighter from 2004 to 2006. They were not written to in the first round – Is this member in scope for the second exercise?

Answer: As this period wasn’t picked up during the first exercise then, yes, the individual is in scope to be considered under the second exercise.

Scenario three

Question: Individual was originally contacted as part of the first options exercise, however, didn’t take up the option as the service they could buy was limited to a couple of months. The member has service dating back to 1990 – Can they be considered under the second option exercise?

Answer: Providing the individual has continuous service prior to 1 July 2000 then, yes, the individual is in scope to be considered under the second exercise and should be given the option to buy back to the start date of any continuous service.

Scenario four

Question: Individual was originally contacted as part of the first options exercise, however, didn’t take up the option. The individual only has service post 1 July 2000 - Can they be considered under the second option exercise?

Answer: Yes, the individual is in scope to be considered under the second exercise.

Scenario five

Question: Individual originally elected to join under the first options exercise, but either didn’t pay their lump sum or stopped paying their instalments. Will they be deemed in scope for the second options exercise?

Answer: Yes, you will be in scope however all contributions in relation to the 1st options exercise will need to be settled immediately before any pension benefits are paid. Pension contributions for the 2nd Options exercise may be paid by lump sum, instalments or commuted against future pension benefits.