Submitted by SWFBU on
TO: ALL MEMBERS
Dear Brother/Sister
UPDATE IN RELATION TO ONGOING PENSION DISCUSSIONS
As part of the ongoing discussions around pensions the union met with DCLG officials this week. The purpose of the meeting was to enable DCLG to update the union on the work that they have been engaged with, utilising the Government Actuary’s Department (GAD). GAD have been commissioned by DCLG to work on various elements of the proposed scheme but in particular have been looking at early retirement factors which could be applied for an individual in the 2015 scheme who chose to retire before age 60. There has also been some discussion around employee contribution rates.
• Actuarial reductions from 55
The current DCLG proposal is that anyone choosing to retire at age 55 would see their pension actuarially reduced by around 47.1%. The FBU have consistently maintained that reductions of this severity remove any real option for an individual and actuarial advisors have suggested various ways that this reduction could potentially be significantly lessened.
• Contributions
Other areas that GAD has been working on relate to the post-2015 employee contribution rates. The union has consistently raised concerns around the affordability of the schemes. Unfortunately all Governments (including in Scotland, Wales and Northern Ireland) have indicated that they will be imposing the full 3rd year proposed increases to the Firefighters’ Pension Scheme and the New Firefighters’ Pension Scheme. DCLG have nevertheless commissioned GAD to look at future contribution rates in more detail.
• The RDS modified scheme
All members circular 2014HOC0164MW (amended) outlined that the options exercise will commence in England from 1 April 2014. DCLG have issued a timescale to ensure that all eligible people wishing to join will have been enrolled by 1 April 2015 at the latest. Talks will take place in Wales, Scotland and Northern Ireland to ensure that a similar timescale is applied.
• No Job No Pension
The union has met with representatives of the National Employers on several occasions and although progress has been made in several areas have been unable to reach any position that would give the protection that we require in relation to the No Job No Pension element of the trade dispute. The union have presented several options to both the National Employers and to Government which would resolve this issue but unfortunately these have not currently been accepted by either of the other parties.
Budget implications
The Chancellor of the Exchequer, George Osborne, delivered his budget speech on 19 March. It contained unexpected initiatives around pensions. You may have seen some of the coverage of aspects of this in media reporting. While this is primarily addressed to Defined Contribution (DC) schemes there may be implications for Defined Benefit (DB) schemes, including those in the public sector. Currently the position is not clear and we are seeking further advice on this matter as well as full detail from DCLG officials as to any implications for schemes covering FBU members.
Exploring all avenues
In line with Conference policy the FBU negotiators have been exploring all avenues available to try and get a resolution to this pension dispute over recent weeks. This is an extremely frustrating process for all members (including those tasked with conducting the negotiations). However, the union’s Conference has been clear that every possible avenue should be explored in attempting to improve the position for our members. So far, and disappointingly, we have not received any improved proposal from DCLG.
The Executive Council is clear. Negotiators have been tasked with seeking improvements to the current proposals. If such improvements are proposed then the Executive Council would need to consider how to consult members. If no such alterations or improvements are made then our campaign will continue. Government officials have been made very well aware of this fact.
Next steps
The FBU Executive Council will be meeting on 25 March 2014 prior to a national meeting of FBU officials from all Brigades, Regions and Sections on 27 March. Executive Council members will be receiving a detailed update and will be considering the options available.
Officials of the union will also be lobbying MPs on 26 March around pensions as well as other matters affecting our Service. All members are encouraged to continue the lobbying campaign with MPs, MSPs and AMs. The decision to attack our pensions is a political decision taken by politicians. They need to be convinced, by whatever means necessary, to change their position. That is a job in which every member can play a role.
Please make sure that you keep up-to-date with all the developments and attend any local meeting called.
Best wishes.
Yours fraternally
MATT WRACK
GENERAL SECRETARY
