Dear Brother/ Sister
Pensions Update: Immediate Detriment High Court Claims
Legal proceedings have been issued in the High Court and served today (3 March 2021) in order to force Fire and Rescue Authorities (FRAs) to pay our retired members the pension that they are entitled to, the pension that they earned serving their communities.
These proceedings have been served on behalf of an initial three test claimants who have already retired and who are receiving a smaller pension than that which they should be receiving – examples of what have been referred to as the ‘immediate detriment’ cases.
The FBU believe that success on behalf of these initial three test claimants will set a precedent for the treatment of hundreds of other retired FBU members currently being denied their correct pension.
The FBU has been forced to issue these High Court proceedings due to the inaction of employers (FRAs) in addressing these immediate detriment cases. Following the most recent Employment Appeal Tribunal (EAT) judgment, the employers have no possible defence for their inaction. They have known since 2016 that they would have to address these cases for our members who have already retired and who are already losing money. The FBU has taken this action because even though the courts have told the employers that they don’t have to wait to pay our members what they are owed most employers have indicated that they will still await further government guidance from the Treasury and the tax authorities. No further guidance is required. The courts have made it plain what they must do.
This approach by the employers will leave the immediate detriment cases suffering daily financial hardship until potentially October 2023. The FBU has been consistently very clear that the employers must do things in the right order, starting first with settling the immediate detriment cases: those that are affected now.
If the employers do not resolve these cases immediately then the Fire Brigades Union has a very simple message – We will sue you all, each and every employer one after another if we have to, and then claim the legal costs which will potentially cost you thousands upon thousands of pounds.
Details of the three test cases.
- The first claimant retired on the grounds of ill-health. He was initially told that he was entitled to an upper-tier pension on the terms of the 1992 Firefighters’ Pension Scheme (FPS), but he was then sent a letter “clarifying” the position: he was told that he should be treated as a member of the 2015 Scheme, and because his condition was not certified as permanent by the IQMP, he only qualified for a lower-tier 2015 Scheme pension.
- His pension is £1,528.00 per annum lower than it should be.
- His commutation lump sum is £26,446.14 smaller than it should be.
- The second claimant retired on the grounds of ill-health. Like the first claimant, he was initially told that he was entitled to an upper-tier pension on the terms of the FPS 1992, but he was then sent a letter “clarifying” the position: he was told that he should be treated as a member of the 2015 Scheme, and because his condition was not certified as permanent by the IQMP, he only qualified for a lower-tier 2015 Scheme pension.
Because he was told that his pension would be lower than expected, he felt he could not afford to commute any of his pension. Had he been told that he was entitled to retire on 1992 FPS terms, he would have commuted the maximum.
- His pension is £3,020.47 per annum lower than it should be.
- Alternatively, if he had been offered 1992 FPS terms and if he had commuted the maximum, his pension would have been £781.12 smaller than it is; but
- His commutation lump sum would have been £91,193.23 instead of nothing at all.
These are both clear cases. We know precisely what their position would have been if they had been treated as members of the 1992 FPS: the employer has told us. They would have qualified for a higher-tier 1992 FPS ill-health pension.
- The third claimant should have been permitted to retire in July 2020 with a full 1992 FPS pension because he was aged 50 and had completed 25 years’ service. Instead, he was offered 2015 Scheme terms which for financial reasons he had no choice but to take.
He joined the fire and rescue service at the age of 19. He should have been given a contributions holiday in his last year or so, but because he was treated as a member of the 2015 Scheme, he had to keep contributing.
- His pension is £1,722.86 per annum lower than it should be (he is now 50 years old);
- His commutation lump sum is £28,961.79 lower than it should be; and
- He has overpaid contributions of nearly £5,900 which should be returned to him.
The claims above have been served, 11am Wednesday 3 March 2021: it could be as soon as 6 weeks for a decision to be passed down from the court. These are not only important proceedings for members already retired (ill-health or otherwise) but also for members who are approaching retirement who seek clarity from their employer as to definitive pension figures for their retirement plans.
Finally, it is the Fire Brigades Union and ONLY the Fire Brigades Union that has lodged these claims, other ‘associations’ who purport to represent the interests of firefighters have done nothing but sit on their hands.
Members will be kept fully informed in relation to any and all developments.
Best wishes,
Yours in unity
Mark Rowe
National Officer
