Some firefighters are in line for payouts running into thousands of pounds after the government effectively conceded they had been short-changed on their pensions.
The “significant legal victory” announced by the Fire Brigades Union (FBU) relates to a controversial policy that meant many of its members had to pay in for up to 32 years in order to receive a 30-year pension.
This has long been regarded by many firefighters as an injustice, and the matter was due to be decided in court after the FBU lodged a legal challenge – but at the 11th hour the government has conceded the case.
The way the firefighters’ pension scheme worked was that it had an “accrual cap” of 30 years service, which meant no more pension could be built up after a member had reached that point.
However, the earliest age at which someone could receive a 30-year pension was 50, which meant those who joined the pension scheme at the age of 18 or 19 had to contribute for up to 32 years in order to receive it. This is the age at which many firefighters have been able to retire.
One of those affected by this issue is Gary Mitchell, who lives in Corby, Northamptonshire, and retired from the fire service in September this year after turning 50 that month. He joined the service when he was 18, and said: “When I finished in September, I had paid 31 and a bit years of contributions for a 30-year scheme.” Mitchell added he could never understand why he had to pay pension contributions between the ages of 18 and 20 for no benefit. “We used to call it the 18 to 20 club. There was a group of us, and we could never get an answer. It was: ‘That’s the way it is.’”
The Department for Communities and Local Government has now confirmed it will allow members under the age of 50 who have built up 30 years’ service to take a “contributions holiday” from the time they reach this point until they reach age 50.
The proposal is to be applied retrospectively to 1 December 2006 – the date, according to the FBU, when age discrimination of this type became unlawful.
This means that people such as Mitchell, who paid in for more than 30 years before reaching the age of 50, will now get a refund of their pension contributions for the relevant period, with interest on top.
The FBU has 38,000 members, and it is thought some may be in line for payouts of up to £7,000 apiece. “This issue has been of concern for many years, particularly among those members affected – that is, those who joined the service and pension scheme before the age of 20,” said a union spokesman.
A spokesman for the DCLG said: “This relates to a historic technical issue in the 1992 Firefighters’ Pension Scheme. The government will be working with fire service unions and employers to finalise the pension arrangements for the relatively small number of firefighters who joined the service before the age of 20 and served for over 30 years.”
During the past two years or so, firefighters have staged a number of walkouts connected to planned wider pensions changes and an increase to the retirement age.
