Open consultation

Amendments to the Firefighters’ Pension Scheme: retained firefighters (accessible)

Published 23 December 2024

Proposed changes to the Firefighters’ Pensions Scheme (ENGLAND) 2006.

Retained firefighters’ pensions

Matthews remedy

About this consultation

This consultation begins on 23 December 2024 and ends on 17 February 2025.

This consultation is open to the public.

We are particularly interested to hear from serving and former firefighters and other members of the Fire sector in England.

A response to this consultation will be published on GOV.UK.

How to respond

Please respond by 17 February, 11:59PM using the online survey.

If you cannot access or use the online survey, you can send your response to:

Email: retainedfirefighterspensionsremedy@homeoffice.gov.uk

If you are a user of specialist accessibility software that is not compatible with the above options, you may post your response to:

Retained Firefighters’ Pension
Police Workforce and Professionalism Unit
Home Office
6th Floor, Fry Building
2 Marsham Street
London
SW1P 4DF

If you are unable to access an electronic version of the document, please write to the above address and a paper copy will be provided.

Requests for the paper in an alternative format can also be sent to the above address.

1. Background

1.1 Apart from when undertaking training sessions and carrying out scheduled duties, retained firefighters are part-time firefighters who only attend a Fire station after having received an emergency callout. Retained firefighters may also have other occupations, but, when called upon, they will perform firefighting duties.

1.2 Historically, retained firefighters did not have any entitlement to membership of the Firefighters’ Pension Scheme 1992 (the ‘1992 Scheme’). A group of retained firefighters brought legal proceedings against the government in the case of “Matthews v. Kent and Medway Towns Fire Authority (2006)” (‘the Matthews case’) under the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 (‘the PTWR’). The claims related to their exclusion from the 1992 Scheme, which then provided benefits solely to full-time regular firefighters.

1.3 Following the final determination in the case, a new pension arrangement was introduced through the creation of modified provisions in the 2006 Scheme (the ‘modified scheme’) on 1 April 2014.

1.4 The modified scheme currently provides preferential pension terms similar to those provided by the 1992 Scheme to retained firefighters who were employed between 7 April 2000 and 5 April 2006 inclusive, with the option to purchase pre-7 April 2000 service where the member has continuous retained service.

1.5 Fire and Rescue Authorities (FRA’s) are currently implementing the 2023 Options exercise, which is the process that allows eligible retained and former retained firefighters to elect to join the modified scheme.

1.6 The Home Office has been advised that a significant number of Fire and Rescue Authorities will not be able to complete implementation of the 2023 Options exercise by the current closure deadline of 31 March 2025. Additionally, the Home Office has been made aware of a number of areas that should have been covered by the Matthews remedy, as described above, but were not captured by the legislative changes introduced in 2014 and 2023

1.7 Whilst the extension to the remedy’s closure deadline will apply to all cases that remain unsettled by the end of March 2025, it is not expected that the proposed technical changes will impact many cases.

1.8 The Home Office intends for these proposed future changes, subject to the outcome of the consultation, to be implemented via secondary legislation. Subject to views gathered as part of this consultation, the Home Office intends to introduce this legislation as soon as is reasonably possible. We will take into account the responses to this consultation, prior to finalising any further amendments to the scheme.

2. Introduction

2.1 This consultation focuses on the government’s commitment to provide additional remedy and flexibility to those members who were employed as retained firefighters between 7 April 2000 and 5 April 2006 inclusive by providing access to the modified provisions of the Firefighters’ Pension Scheme 2006 (referred to as ‘the modified scheme’). The Home Office seeks views on whether the proposed amendments achieve the policy intention for all eligible members.

2.2 This consultation runs for an 8 week period. This should allow sufficient time for scheme members, representative bodies, and others, to consider and comment on the proposals. This consultation provides an opportunity for those affected by the changes, and representative bodies, to provide formal comments on the Home Office proposals.

2.3. We are seeking your views on proposals to amend to the Firefighters’ Pension Scheme (England) Order 2006 to allow:

• the payment of a missed pension lump sum / survivor’s missed pension payment in respect of a deceased individual who would have been entitled to a pension (or a higher pension) under Matthews remedy

• the extension of the eligibility criteria for an ‘additional death grant’ payment, so that it is also payable in respect of those individuals who did not join (or did not get an opportunity to join) the modified scheme during the 2014 Options exercise

• individuals who joined the modified scheme as special deferred members the option to convert relevant standard service in the 2006 Scheme to special service in the modified scheme

• for a minor clarification to be made to an existing reference to ‘additional death grant’

• eligible individuals with periods of ‘opted out’ service in the standard 2006 Scheme to count this towards their special service

• flexibility to apply new provisions beyond 31 March 2026

• the closure deadline of the 2023 Options exercise to be extended by 12 months to 31 March 2026

• members who join the modified scheme as special pensioner members, and who are in receipt of a ‘member initiated early payment of pension’, the ability to convert their standard service to special service

3. Who do we want to hear from?

3.1 This consultation welcomes views from any member of the public but is specifically interested in the views of those serving or who have served in the Fire service, and any groups or individuals with an interest in the Fire sector in England.

3.2 A link to this consultation has been sent to the following groups:

1. Association of Principal Fire Officers
2. Fire Brigades Union
3. Fire Leaders’ Association
4. Fire and Rescue Services Association
5. Firefighters’ Pension Scheme Advisory Board of England
6. Local Government Association
7. National Fire Chiefs’ Council
8. The Fire Officers Association
9. Fire and Rescue Authorities in England
10. National Association of Retired Firefighters
11. Scheme administrators and scheme payroll providers

4. Proposed amendments to the Firefighters’ Pension Scheme (England) Order 2006

4.1 The Home Office proposes to make amendments to the Firefighters’ Pension Scheme (England) Order 2006. This section outlines proposals and considerations for elements of the Matthews 2023 options exercise that could be adjusted.

Payment of a missed pension lump sum / survivor’s missed pension payment in respect of a deceased individual who would have been entitled to a pension (or a higher pension) under Matthews

Missed pension lump sum

4.2 This issue relates to any individuals who:

(a) Would have been entitled to join the modified scheme under the 2014 Options exercise or the 2023 Options exercise, but died before having an opportunity to purchase their full retained service in the modified scheme; and

(b) Would have been entitled to receive special pension payments or increased special pension payments prior to their death.

4.3 At present the regulations do not allow for the missed special pension payments that a member would have received, had they not died prior to making an election to join the 2006 scheme as a special member, to be paid to the member’s estate.

4.4 The proposal is to provide payment of any lost pension (pre-commutation) to the deceased member’s survivor or estate as a single lump sum payment – a ‘missed pension lump sum’ plus interest. Interest should be applied in the same way as it is applied to retrospective pension payments for those who join as special pensioner members. For the purposes of calculating interest for these payments, it shall be assumed that the past pension payments were payable from the date that the member would have become entitled to receive their pension payments with the relevant pensions increase applied. Any missed pension lump sum payments will be reduced to reflect the member contributions that the deceased should have paid to purchase the past service / additional past service.

Survivor’s missed pension payment

4.5 Where a missed pension lump sum payment is paid, it is also proposed that any eligible survivor will also receive a ‘survivor’s missed pension payment’ equating to 0.1 x the deceased member’s pensionable pay for each full qualifying year of service that is used to calculate the missed pension lump sum (to include interest). The survivor’s missed pension payment is not payable where the deceased member’s death occurred between 7 April 2000 and 5 April 2006 inclusive – in these cases the survivor will already have received survivor benefits from the special death grant or the death grant for extended limited period.

4.6 A survivor’s missed pension payment will not be payable in any case where an additional death grant is payable.

4.7 It should be noted that where a deceased member joined the modified scheme as part of the 2014 Options exercise, any eligible survivors will continue to receive their survivor’s pension in respect of the special service that the deceased member purchased in accordance with the current regulations.

Extending the eligibility criteria for an ‘additional death grant’ payment so that it is also payable in respect of those individuals who did not join (or did not get an opportunity to join) the modified scheme during the 2014 Options exercise

Death grant for limited period

4.8 Under the 2014 Options exercise, a death grant for limited period could be paid to the surviving spouses of any deceased member who would have been entitled to join the modified scheme but they died during the period 1 July 2000 and 5 April 2006 inclusive.

4.9 The death grant for limited period had to be paid within 12 months of the amending legislation coming into force (1 April 2014) and only where the surviving spouse made an application to the relevant Fire and Rescue Authority. The grant was calculated as 2 x pensionable pay (as the death grant that they would have received had they been an active member of the 1992 Scheme) plus 0.5 x pensionable pay (to reflect the survivor benefits associated with the deceased member’s service during the period 2000 and 2006).

Death grant for extended limited period / additional death grant

4.10 Under the 2023 Options exercise, amendments were made to extend the death grants made to survivors in respect of deceased members. The changes made under the 2023 Options exercise currently provides the following:

i. A Death grant for extended limited period (see Part 5, Rule 1B of the 2006 Scheme rules) for anyone who was employed as a retained firefighter on or before 7 April 2000 and continued in such employment until they died before 6 April 2006 equating to:

a) 2.5 x their pensionable pay at the time of their death in relation to service during the period 7 April 2000 and 5 April 2006; and

b) 0.1 x the deceased member’s pensionable pay for each full qualifying year of service that the deceased had prior to 7 April 2000 (where applicable).

ii. An Additional death grant (see Part 5, Rule 1C of the 2006 Scheme rules) for anyone who joined the modified scheme and would have been able to purchase additional service under the 2023 Options exercise but has since died. The additional death grant equates to 0.1 x the deceased member’s pensionable pay for each full qualifying year of service that the deceased had prior to 1 July 2000.

4.11 Both the ‘death grant for the extended period’ and the ‘additional death grant’ can be paid where an application is made on or before 31 March 2025.

4.12 There are two scenarios that the additional death grant does not allow for:

i. Members who chose not to join during the 2014 Options exercise but could have joined during the 2023 Options exercise (as they have pre-July 2000 service) but died before having the opportunity to join; and

ii. Members who did not get a reasonable opportunity to join during the 2014 Options exercise and could have joined during the 2023 Options exercise (these members will not necessarily have pre-July 2000 service) but have died before having the opportunity to join.

4.13 With regards to scenarios a) and b) above, consideration needs to be given as to whether any payments should be made in respect of any survivor benefits.

4.14 The proposal is to extend the eligibility criteria for the ‘additional death grant’ so that it is also payable in respect of any member who did not join in the 2014 Options exercise but would have been eligible to join in the 2023 Options exercise but for the fact that they died prior to joining.

4.15 The additional death grant equates to 0.1 x the deceased member’s pensionable pay for each full qualifying year of service that the deceased could have purchased under the 2023 Options exercise.

Providing individuals who joined the modified scheme as special deferred members with the option to convert relevant standard service in the 2006 Scheme to special service in the modified scheme

4.16 The scheme, as it currently stands, does not allow members who joined the modified scheme as a special deferred member to ‘convert’ their standard service to special service or vice versa. At present this conversion option is restricted to those who join the modified scheme as special firefighter members.

4.17 Consideration is given to the potential impact on an eligible member’s final pension entitlement under the modified scheme. In many cases it may result in members becoming entitled to a special deferred pension payable from age 60, compared to pension payable of their special pension from age 55 – the normal pension age in the modified scheme.

4.18 The proposal is to extend the conversion options at Part 12, Rule 17 of the modified scheme to allow members who join the modified scheme as special deferred members the option to convert standard service in the 2006 Scheme to special service in the modified scheme. This will only apply in circumstances where there are no breaks in service between the member’s special service and standard service.

Providing a minor clarification to an existing reference to ‘additional death grant’

4.19 Part 5, 1B(8) of the 2006 Scheme sets out the formula to follow for calculating the extended death grant.

4.20 It has been suggested the reference to ‘additional death grant’ in the formula can be misleading, particularly as there are separate regulations for a separate additional death grant at Part 5, Rule 1C, as is the case for other types of members who are already able to convert their service under these provisions.

4.21 The Home Office proposes to make a minor clarification amendment to the formula at Part 5, Rule 1B(8) to change the reference from ‘additional death grant’ to ‘extended death grant’ to remove any misunderstanding.

Allowing eligible individuals with periods of ‘opted out’ service in the standard 2006 Scheme to count this towards their special service

4.22 The current scheme rules do not allow any member to purchase a period of ‘opted out’ standard service as special service in the modified scheme. This treatment is unfavourable compared to a member in a similar position but who never joined the standard 2006 Scheme. The rules allow a member who never joined the 2006 standard scheme to purchase all their service in the modified scheme up to, and including, 31 March 2015.

4.23 The proposal is to make a change to allow members who joined the standard 2006 Scheme for their service on or after 6 April 2006, and who subsequently opted out of the standard 2006 Scheme prior to 1 April 2015, to purchase any period/s of opted out service as special service under the modified scheme.

Providing flexibility to apply new provisions beyond 31 March 2026

4.24 A number of proposals under this consultation are introducing new awards or are making provision for new cohorts to gain access to Matthews remedy. The intention is to allow these cases to be paid after the 31 March 2026 in circumstances where the individual has not received a notification from their employer. This proposal is in recognition that the time for Fire and Rescue Authorities to identify and process such cases may be shorter than for those cohorts who have been eligible to access the modified scheme since the beginning of either the 2014 or 2023 Options exercise.

4.25 The new awards referred to in paragraph 4.23 include ‘missed pension lump sum payments’, ‘survivor’s missed pension lump sum payments’, and cases where an individual who previously:

i. Joined as a special deferred member and is now able to convert their standard service to special service

ii. Joined the scheme and was unable to purchase periods of opted out service as special service; and

iii. Retired from the standard 2006 Scheme with a ‘member initiated early retirement pension’ and now can convert their standard service to special service.

Providing for the closure deadline of the 2023 Options exercise to be extended by 12 months to 31 March 2026

4.26 The Home Office has been informed that many FRAs have expressed concerns about meeting the 31 March 2025 implementation deadline for a significant number of Matthews remedy cases. This is also supported by survey data received from FRAs on the progression of remedy implementation.

4.27 The proposal is to allow FRAs a further period of up to 12 months (to 31 March 2026) to implement the remedy in circumstances where FRAs are unable to meet the 31 March 2025 deadline. This will help ensure that all those eligible to join the modified scheme will have the opportunity to do so.

Providing members who join the modified scheme as special pensioner members and are in receipt of a ‘member initiated early payment of pension’ the ability to convert their standard service to special service

4.28 Under Member Initiated Early Retirement (MIER), an active firefighter can ask their employer for early payment of their deferred benefits. If agreed, these can be paid from age 55. Some of these cases are now eligible under Matthews remedy and regulations currently do not allow conversion of standard to special service under Part 12, Chapter 6, Rule 18(1)(a).

4.29 Conversion options for special pensioner members are only available if there is a regular pension, a higher tier ill-health pension or a lower tier ill-health pension in payment.

18 Converting membership from standard membership to special membership – special pensioner members

• This rule applies –

• To a person who is a special pensioner member, or is entitled to be a special pensioner member and who is in receipt of an ordinary pension, a higher tier ill-health pension or a lower tier ill-health pension;
• In respect of pensionable service which he would be entitled to treat as special pensionable service.

4.30 A MIER is not classed as a regular pension, it is classed as early payment of deferred benefits, so would be out of scope of Chapter 6, Rule 18(1)(a).

4.31 The proposal is to extend the provision to allow conversions for those members who join the modified scheme as special pensioner members and who are in receipt of a MIER pension.

5. Supplementary resources and additional information

5.1 To assist respondents to evaluate these considerations, we will be hosting a drop-in session remotely. The date is yet to be confirmed and further details will be emailed to our stakeholder groups in due course.

5.2 For enquiries about the drop-in session, please contact:

retainedfirefighterspensionsremedy@homeoffice.gov.uk

6. Public Sector Equality Duty

6.1 The Public Sector Equality Duty (PSED) is set out in section 149(7) of the Equality Act 2010 and outlines what public bodies must give due regard to, in the exercise of their functions.

Key duties under Section 149 are:

6.2 Public bodies must, when exercising their functions, have due regard to the need to:

1. Eliminate discrimination, harassment, victimisation, and any other conduct prohibited by or under the Equality Act.

2. Advance equality of opportunity between people who share a relevant protected characteristic and those who do not. This involves:

   a. Removing or minimising disadvantages suffered by people who share a relevant protected characteristic that are connected to that characteristic.

   b. Taking steps to meet the needs of people who share a relevant protected characteristic, where those needs are different from the needs of persons who do not share it.

   c. Encouraging participation in public life or any other activity where it is disproportionately low among people who share a relevant protected characteristic.

3. Foster good relations between people who share a relevant protected characteristic and those who do not. This involves:

   a. Tackling prejudice.

   b. Promoting understanding between different groups.

6.3. For the purposes of the PSED, the relevant protected characteristics are: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

7. Conclusion and next steps

7.1 Following the outcome of this consultation, the Home Office is proposing to amend the Firefighters’ Pension Scheme (England) 2006 Order, so that all members eligible (or their respective survivors) to join the modified scheme can join the modified scheme and benefit from the options available.

7.2 Once this consultation has concluded, we intend to:

• Review the responses received: We will carefully review the evidence and responses received during the consultation, by analysing both the quantitative and qualitative data, including drawing out key themes, recommendations, and areas of concern and consensus.

• Consider discussions / evidence provided by stakeholder engagement meetings: We will consider the suggestions, insights and concerns gathered from key stakeholders during this consultation.

• Consider evidence already collected by other government departments: Evidence received from other government departments will be reviewed to identify any relevant findings that could support the process.

7.3 Once we complete this consultation and our comprehensive review, we will determine what legislative changes are needed and the most effective way to implement them. The aim is to ensure changes are based on a broad range of evidence and are consistent with best practice and legislative requirements.

Glossary of terms

2014 Options exercise: The 18 month exercise that Fire and Rescue Authorities undertook from April 2014 to give individuals eligible for Matthews remedy the option to elect to join the modified scheme.

2023 Options exercise: The 18 month exercise that Fire and Rescue Authorities undertook from October 2023 to give individuals eligible for Matthews remedy the option to elect to join the modified scheme.

Additional Death Grant: Additional lump sum payment made to the survivor of a retained firefighter who first took up employment prior to 1st July 2000, elected to join the modified 2006 scheme in respect of their service during the limited period, but died before making an election in respect of their service during the extended limited period.

Death Grant for Limited Period: A lump sum payment paid under the terms of the 2014 options exercise in respect of an individual employed as a retained firefighter on or after 1 July 2000 and who continued in such employment until they died before 6 April 2006.

Death Grant for Extended Limited Period: A lump sum payment paid under the terms of the 2023 Options exercise in respect of an individual employed as a retained firefighter on or after 7 April 2000 and who continued in such employment until they died before 6 April 2006.

Extended Limited period: The retained service which an individual will have the entitlement to purchase and reckon as special service in the modified pension scheme under the terms of the 2023 Options exercise.

Firefighters’ Pension Scheme 1992: The Pension Scheme for firefighters introduced in 1992 and closed to new entrants on 6 April 2006.

Firefighters’ Pension Scheme 2006: The Pension Scheme for firefighters, introduced in 2006 and closed to new entrants on 31 March 2015.

Firefighters’ Pension Scheme 2015: The Pension Scheme for firefighters introduced in 2015. It is the only scheme available for active firefighters since 1 April 2022.

Limited period: The retained service period which an individual had the entitlement to purchase and reckon as special service in the modified pension scheme under the terms of the 2014 Options exercise. This period had a backstop date of July 2000.

Matthews Remedy: The entitlement of eligible individuals to join the modified scheme and to benefit from its preferential pension terms, similar to those provided under the 1992 Scheme.

Modified Scheme: The modified provisions of the Firefighters’ Pension Scheme 2006 that provides pension entitlement for individuals who are eligible for Matthew’s remedy.

Retained firefighter: A part-time firefighter responding when required during their ‘on-call’ hours.

Special Deferred Member: Members of the modified scheme who leave their employment or opt out of the scheme’s membership prior to attaining age 55 – the age at which they would become entitled to immediate payment of pension benefits.

Special Service: The retained service that an individual purchases or accrues in the modified scheme.

Consultation principles

The principles that government departments and other public bodies should adopt for engaging stakeholders when developing policy and legislation are set out in the consultation principles