C

Career-average pension

 

Career-average pension is the pension built up in the 2015 Scheme.

 

Commutation factors

 

A commutation factor, as shown in the table below, is applied to the part of the pension you give up to calculate the amount of the lump sum.

 

 

1992 Scheme

2006 Scheme

Special Modified 2006 Scheme

2015 Scheme

Commutation factors

Calculated by the scheme actuary and reviewed regularly

12:1

Annex ZA of 2006 regulations

12:1

 

 

 

[Annex ZA Firefighters’ Pension Scheme (England) Order 2006 - http:‌//www.legislation.gov.uk/‌uksi/2015‌/590/schedule/2/paragraph/4/made]

 

 

This is the value of pension benefits measured against the lifetime allowance. This is calculated by multiplying the annual pension by 20.

 

D

Deferred pension age

 

 

1992 Scheme

2006 Scheme

Special Modified 2006 Scheme

2015 Scheme

Deferred pension age

60

65

60

State Pension age

 

F

Final salary scheme pension

 

For the purposes of these notes, final salary scheme pension is any pension built up in the 1992 Scheme, the 2006 Scheme, or the modified version of the 2006 Scheme.

 

N

Normal pension age

 

1992 Scheme

2006 Scheme

Special Modified 2006 Scheme

2015 Scheme

Age 55, or 30 years’ service, whichever happens first

60

55

60

 

P

Pension growth

 

For defined benefit schemes, such as the Firefighters Pension Scheme, the pension growth is the measurement of the increase in pension during the PIP multiplied by a flat factor of 16.

 

 

 

Example

 

 

 

Annual pension at 6 April 2016 = £35,000

 

Annual pension at 5 April 2017 = £38,000

 

Pension growth = £38,000 - £35,000 = £3,000 x 16 = £48,000

 

Pension input period

 

 

This is the period over which the pension growth is measured and is always 6 April to 5 April for all pension schemes. Pension input period is commonly abbreviated to PIP.

 

 

 

 

Protected member

 

 

 

A protected member is somebody who is protected by legislation to stay in the existing final salary scheme (1992, 2006 or Special Modified 2006 Scheme), and so will not move into the 2015 Scheme.

 

R

Revaluation order

 

The revaluation order for the Firefighters Pension Scheme is based on average weekly earnings.

 

The revaluation order is applied to the closing balance of the career-average pension on 1 April each year.

 

 

 

Scheme year

Revaluation order

2015/2016

2%

2016/2017

2.6%

2017/2018

3%

 

 

 

 

S

 

The scheme year runs from 1 April to 31 March. The current scheme year to which this statement refers is 1 April 20xx to 31 March 20xx

 

State Pension age

 

You can calculate your State Pension age here: https://www.gov.uk/state-pension-age

 

T

Taper-protected member

 

A taper-protected member is somebody who is not protected by legislation to stay in the final salary scheme (1992, 2006 or Special Modified 2006 Scheme), and so will move into the 2015 Scheme at some point between 24 May 2015 and 31 March 2022, depending on their age.