Dear Brother/Sister
The Government has today released information about our pension contributions for 2012-2013. You will be aware that the Government has increased employee contributions for all public sector workers and the Fire Service has been no exception. We have always stated our opposition to any increases and have, over the last few months, submitted substantial evidence to support our position. Over the last few weeks we have concentrated our efforts on seeking to influence the Government's decision on the Year 1 contributions (2012-2013).
We have been informed that as a result of the evidence presented the proposed increases have been reduced at firefighter level by over 50%. Any increase is an unwelcome step at a time of a pay freeze and high rates of inflation. Nevertheless, taken as a whole these are the lowest rates of increase of any of the unfunded schemes in the public sector. The Executive Council will now consider the implications of these increases alongside the other developments in our pension discussions.
The tables below show a comparison between the initial proposed increases and the ones that are now to be implemented.
1992 FPS
| Pensionable pay band | Original proposed increase 2012-2013(%) | Actual Increase2012-13(%) | Totalcontribution rate2012-13 (%) |
| Up to and including £15,000 | 0.0 | 0.0 | 11.0 |
| More than £15,000 and up to and including £30,000 | 1.3(for those earning above £15,000) | 0.6 | 11.6 |
| More than £30,000 and up to and including £40,000 | 1.4 | 0.7 | 11.7 |
| More than £40,000 and up to and including £50,000 | 1.6 | 0.8 | 11.8 |
| More than £50,000 and up to and including £60,000 | 1.8 | 0.9 | 11.9 |
| More than £60,000 and up to and including £100,000 | 2.0 | 1.2 | 12.2 |
| More than £100,000 and up to and including £120,000 | 2.1 | 1.5 | 12.5 |
| More than £120,000 | 2.3 | 2.0 | 13.0 |
2006 NFPS
| Pensionable pay band | Original proposed increase 2012-2013(%) | Actual Increase2012-13(%) | Totalcontribution rate2012-13 (%) |
| Up to and including £15,000 | 0.0 | 0.0 | 8.5 |
| More than £15,000 and up to and including £30,000 | 0.6(for those earning above £15,000) | 0.3 | 8.8 |
| More than £30,000 and up to and including £40,000 | 0.8 | 0.4 | 8.9 |
| More than £40,000 and up to and including £50,000 | 0.9 | 0.5 | 9.0 |
| More than £50,000 and up to and including £60,000 | 1.0 | 0.6 | 9.1 |
| More than £60,000 and up to and including £100,000 | 1.1 | 0.8 | 9.3 |
| More than £100,000 and up to and including £120,000 | 1.2 | 1.0 | 9.5 |
| More than £120,000 | 1.3 | 1.2 | 9.7 |
Wales, Northern Ireland and Scotland
The initial consultation was based on the original proposed increases and took place in England, Northern Ireland, Scotland and Wales. These amended proposals are currently only applicable in England. Therefore we have written to Ministers in Scotland, Wales and Northern Ireland outlining our continued opposition to any increases but seeking confirmation that should they increase employee contributions they will reflect those applied in England.
Previous circulars have confirmed the Government's commitment to reviewing the impact of this increase before taking any final decision on future increases. Terms of Reference for this review were agreed at the Firefighters Pension Committee held on 28 March 2012.
This review gives us an opportunity to attempt to influence any decision on proposed future increases in contributions. The Executive Council will consider the situation relating to this review and the review of Normal Pension Age alongside the amended contribution increases and will report back to members following this week's discussion.
Best wishes.
Yours fraternally
Matt Wrack
General Secretary
2012HOC0186MW
