All Members Circular - Pensions Update

27 November 2013

 

 

TO:      All Members

 

 

Dear Brother/Sister

Pensions update

Our last period of strike action took place on 13 November. Once again we saw enormous solidarity from FBU members and, on behalf of the Executive Council I would like to pay tribute to all concerned. We have again heard widespread reports of high levels of public support and sympathy for our action.

Key issues in recent discussions

Recently the discussions have focused on the No Job No Pension issue. We have stressed that although this is a key issue it is only one of the eight in our trade dispute. In Scotland we have been given a firm guarantee (on this issue) and a process which means firefighters will not be left without a job or access to an unreduced pension.

Discussions elsewhere have considered a set of draft principles which are similar to those discussed in Scotland. However, as previously reported, National Fire and Rescue Service Employers have confirmed that these principles will not provide the protection sought by the Union. There are therefore clear differences on this issue between the situation in Scotland and elsewhere. This point has become an important area of disagreement since officials and Ministers at Westminster have attempted to claim the principles offer the same degree of protection. They do not. That position has been confirmed by the National Fire Service Employers and by our own legal advice

CLG National Framework and need for a pension regulation

CLG Fire Minister, Brandon Lewis, has suggested that he will include reference to the draft principles in the Fire and Rescue National Framework document. Again, the Union has been very clear with Mr Lewis that this does not and would not provide the robust protection we would require. We have provided a potential remedy in the shape of a draft regulation for the 2015 scheme. This was drawn up with legal advice and could be central to resolving an issue which both Government and Employers claim they also want to resolve. Despite this, Mr Lewis has currently not taken up the proposal for a regulation and has not discussed the matter with us further.

Year 3 contribution increases

Recent information from the Firefighters’ Pension Committee (FPC) indicates that all firefighters across the UK face further increases in pension contribution from April 2014. Although there is variation according to salary and scheme, this will mean that a firefighter in the FPS bringing home around £1650 will pay around £340 per month in contributions after 1 April 2014. This means on a salary of £28,766 an FPS firefighter will pay around £4,000 in contributions.

Members of the New Firefighters Pension Scheme (NFPS) also face increases – with more to follow. April 2014 will be the third year increase and will mean that employee contributions have risen from 8.5% in 2011 to 10.4% in 2014. This group of members, also face a further rise in 2015 of around 2.2% when they are transferred into the proposed 2015 scheme.

The FBU has consistently argued that we cannot just accept a situation where firefighters are being priced out of their schemes.

Government will be shortly formally consulting on these proposals. As in previous years the Union will be developing a detailed response on this key issue. As part of this we are seeking further evidence from members through a survey conducted by YouGov. A separate circular provides information on this and members are strongly urged to participate.

Protection of existing pension rights

All Governments across the UK are still refusing to fully protect current scheme members although the Scottish proposal does include an improvement in this area which has been previously reported.

The Union has explained to Ministers that thousands of firefighters remain very angry with this aspect of Government proposals and are clear that the agreement they had made on entering the Service is being unilaterally terminated, often after many years of service and many years of pension contributions.

The Executive Council is aware of the concerns raised by members regarding the legality of this process. These concerns have been discussed regularly with our legal advisors and we have on several occasions sought specialist external legal advice. We are also aware that the Government, at taxpayers’ expense, will have been taking advice in order to defend itself against any potential legal challenges.

The FBU has been clear that we will seek any and every opportunity to challenge the attacks on our pensions using political, legal and industrial means. This has already produced one high level (but unsuccessful legal challenge regarding the uprating mechanism for pensions (RPI/CPI). The Executive Council recently agreed to conduct a further in-depth review of all aspects of the pension attacks with our legal advisors with a view to identifying any further viable challenges. This may in some cases also include revisiting legal areas that have already been explored as we aim to leave no stone unturned in challenging the attacks on our pensions.

Walking away from talks?

In press comment and elsewhere, Mr Lewis has accused the FBU of walking away from talks. That is simply not the case. The Union has not refused and would not refuse to attend any talks which might resolve the dispute – or even offer a partial way forward on particular areas of the dispute. 

Indeed, over the past few weeks we have continued to meet with the Welsh Government, the Scottish Government and the NationalFire Service Employers. We have also been in constant discussion and had numerous meetings with Ministers and Government officials in Northern Ireland, where there has been some very welcome dialogue around the proposed legislation on public sector pensions.

Roundtable discussion on fitness and capability

Mr Lewis has now invited the Union to attend a ‘roundtable’ discussion on fitness and capability. This is due to take place on Wednesday 4 December. The Union shall, of course, be attending and we hope that Mr Lewis uses this as an opportunity to start to address the concerns we have raised around this issue.

In relation to these discussions the Union has also prepared and submitted a response document on the questions asked by CLG. This has been circulated to all CFOs and Chairs of Fire and Rescue Authorities. Local FBU officials have been seeking discussions at local level to set out the FBU position on the issues to be discussed at the roundtable on 4 December. This document will also be placed on the FBU website.

Industrial Action Short of Strike

As you will be aware, the Union is currently balloting members (in England, Scotland and Wales) for additional forms of industrial action (Industrial Action Short of Strike). We have explained elsewhere that the aim of such action is to maximise the pressure on Government while minimising the difficulties for FBU members. Any such action would not replace strike action but would be a supplement to it. A short video update on this issue is available on the FBU website. Members are urged to return ballot papers and to Vote Yes in the ballot.

Strike action and next steps

The Executive Council meets on 3, 4 and 5 December to consider reports on all aspects of the campaign. This will include developments in all parts of the UK; meetings with the Fire Service Employers; the result of our ballot for additional action; the proposals for further contribution increases; and the discussion with Government, Employers and others on fitness and capability which is scheduled for 4 December. Plans for the next steps, including further strike action will be addressed as part of this assessment and these discussions.

Best wishes.

Yours fraternally

 

MATT WRACK

GENERAL SECRETARY

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