Submitted by SWFBU on
27 March 2013
TO: ALL MEMBERS
Dear Brother/Sister
Government imposes full year 2 employee contribution rises and once again ignores all the evidence
By now you will be aware that government have imposed the full Year 2 employee contribution rises onto members of the Firefighters’ Pension Scheme and the New Firefighters’ Pension Scheme. These will mean that a competent firefighter earning £28,481 will seen an increase in their pension contributions by 1.3% FPS and 0.8% NFPS. Higher increases will be applied for higher earners.
The FBU responded to the consultation exercise outlining our concerns that any increase was self-defeating and will not raise the money that government predict. Instead it will increase scheme member opt-out figures and discourage new entrants to the Service from joining the pension scheme. Despite our warnings these new increased rates will be imposed in England, Scotland, Northern Ireland and Wales from 1 April 2013 with more proposed for 2014.
Our evidence showed that firefighters were considering opting-out and many felt that they were being priced out of the schemes. The government's own evidence from the face-to-face talks with firefighters and from results of a questionnaire issued in Scotland confirmed that high level of opt-outs would be increasingly likely if government continued with its proposed plans for firefighter pensions.
Many firefighters said that they were waiting to see how it developed and were waiting to see what happened with the NPA talks before they made their decision but large numbers indicated that for the first time opting-out of the pension schemes was a real consideration.
Despite this, governments in England, Scotland, Northern Ireland and Wales are pushing ahead with these increases.
They have attempted to justify this on the grounds that large numbers have not currently opted-out.
We have consistently said that they need to consider what firefighters are actually saying about this and then they will understand why the opt-outs have been managed so far.
The reason people haven’t opted-out is made clear in the government's own reports.
· Members recognised that firefighters got a 50% reduction on the proposals for Year 1.
· Members were being advised not to opt-out by the FBU, Employers and Government.
· Members were waiting to see what the final position was before making what could be a life-changing decision.
It is frustrating and disappointing that government only considered how many actually opted-out or did not join rather than looking at the longer-term threat. What this means now is that firefighters will see a significant increase in their pension contributions with more threatened for the future. The full increases are outlined in tables below. Further information will be issued explaining what the figures mean in a range of different circumstances.
These latest increases are completely unjustified and mark another major detrimental change to our schemes. It is also important that we recognise that increases in employee contributions, is only one part of the FBU’s opposition to the unworkable, unaffordable, unsustainable and unfair proposals. Currently the latest position and options for the next steps are being discussed at a series of Branch, Brigade, Regional and mass meetings around the UK, many of which have been attended by National Officials.
Please make sure you attend a meeting near you and get the latest information.
Employee Contribution Rates
The following tables show the employee contribution rates to apply to the Firefighters’ Pension Schemes from 1 April 2013.
|
Firefighters’ Pension Scheme Pensionable Pay Band |
Current Rate (%) |
Proposed increase from 2013-14 (Percentage Points) |
Total Contribution Rate 2013-14 (%) |
|
Up to and including £15,000 |
11.0 |
0.0 |
11.0 |
|
More than £15,000 and up to and including £21,000 |
11.6 |
0.3 |
11.9 |
|
More than £21,000 and up to and including £30,000 |
11.6 |
1.3 |
12.9 |
|
More than £30,000 and up to and including £40,000 |
11.7 |
1.5 |
13.2 |
|
More than £40,000 and up to and including £50,000 |
11.8 |
1.7 |
13.5 |
|
More than £50,000 and up to and including £60,000 |
11.9 |
1.8 |
13.7 |
|
More than £60,000 and up to and including £100,000 |
12.2 |
1.9 |
14.1 |
|
More than £100,000 and up to and including £120,000 |
12.5 |
2.0 |
14.5 |
|
More than £120,000 |
13.0 |
2.0 |
15.0 |
|
New Firefighters’ Pension Scheme Pensionable Pay Band |
Current Rate (%) |
Proposed Increase from 2013-14 (Percentage Points) |
Total Contribution Rate 2013-14 (%) |
|
Up to and including £15,000 |
8.5 |
0.0 |
8.5 |
|
More than £15,000 and up to and including £21,000 |
8.8 |
0.3 |
9.1 |
|
More than £21,000 and up to and including £30,000 |
8.8 |
0.8 |
9.6 |
|
More than £30,000 and up to and including £40,000 |
8.9 |
1.0 |
9.9 |
|
More than £40,000 and up to and including £50,000 |
9.0 |
1.1 |
10.1 |
|
More than £50,000 and up to and including £60,000 |
9.1 |
1.1 |
10.2 |
|
More than £60,000 and up to and including £100,000 |
9.3 |
1.2 |
10.5 |
|
More than £100,000 and up to and including £120,000 |
9.5 |
1.3 |
10.8 |
|
More than £120,000 |
9.7 |
1.4 |
11.1 |
Best wishes.
Yours fraternally
MATTWRACK
GENERAL SECRETARY
