Dear Brother/Sister
Members will be aware that the Executive Council recently adjourned in order to be able to discuss all aspects of pensions once further information was available.
The key issues for consideration are:
- Review of opt-outs and the implications of increasing employee contributions.
- Review of Normal Pension Age.
- Employee pension contribution for 2012-2013.
The Firefighters Pension Committee (FPC) meets this week (28 March) and, among other things, will consider the following two papers ' which are both attached:
- Review of Opt-outs: Terms of Reference.
- LGA Proposal for the Firefighters' Pensions Committee's Review of Normal Pension Age for Firefighters.
The FBU has argued that Central Government proposals to increase employee contributions will have the effect of increasing the number of members who choose to opt-out of (or not join) the schemes. We submitted significant evidence around this issue. As a result of the subsequent discussions with Employers and Government it has been agreed that the FPC should conduct a thorough review of the issues raised. The Terms of Reference for this are attached and work has already begun to identify data and other information which will be required.
Likewise, the FBU has consistently challenged the suggestion that Firefighters will be able, in significant numbers to work to a Normal Pension Age (NPA) of 60. Again we have submitted significant evidence on this issue. As a result of the subsequent discussions the Employers have made the proposal for a review of NPA for members of the Firefighters' schemes. Terms of Reference for this review have been submitted for the FPC meeting this week and are attached for your information.
We expect an announcement to be made in relation to pension contributions soon and will provide that information as soon as it is available.
The Executive Council meets later this week and will assess developments in relation to employee contribution increases and the two reviews.
Best wishes.
Yours fraternally
Matt Wrack
General Secretary
2012HOC0180MW
