Dear Brother/Sister,
Earlier this afternoon circular: 2013HOC0701MW was distributed. This circular included the most recent FBU briefing commenting on the latest government FAQ.
The original government FAQ document also includes a number of worked examples but did not include any instances of new entrants to the 2015 scheme with no previous scheme membership to consider.
It is important to consider these scenarios because they will show the real extent of the reductions and will give a long term balanced view.
This should be read in conjunction with the earlier circular.
We asked our actuaries to illustrate some more case study examples to show the effect of the 2015 scheme on a firefighter who only has 2015 scheme service. We have just received some examples for a firefighter who joins the 2015 scheme at age 20 and at age 30 (both have State Pension Age of 68).
These are presented in the same style as the four examples in the government's FAQs. (All figures exclude State Pension).
Ex 5. Firefighter with 40 years' service at age 60 in the 2015 scheme
Firefighter in the 2015 scheme ' no protection
A firefighter earning £29,000 who joins the 2015 scheme aged 20, and is aged 20 on 1 April 2015 will be able to:
€¢ retire at age 60 with a total pension of £19,700.
€¢ retire at age 57 with a total pension of £15,700.
€¢ retire at age 55 with a total pension of £8,500.
Ex 6. Firefighter with 30 years' service at age 60 in the 2015 scheme
Firefighter in the 2015 scheme ' no protection
A firefighter earning £29,000 who joins the 2015 scheme aged 30, and is aged 30 on 1 April 2015 will be able to:
€¢ retire at age 60 with a total pension of £14,800.
€¢ retire at age 57 with a total pension of £11,400.
€¢ retire at age 55 with a total pension of £6,100.
These figures outline that the CLG claim that a firefighter will receive a 'generous' pension of £19,600 is hugely dependent on them completing a full career age 20 to 60 and being able to maintain their fitness throughout.
Please include this additional information when you are discussing the earlier briefing.
Yours in Unity,
Sean Starbuck
National Officer
2013HOC0702SS
Circular ref
2013HOC0702SS
