Second Options Exercise

Following the first options exercise carried out between 2014 and 2015, the timetable below sets out the events that have happened to legislate for the second options exercise.

14 March 2022

More recently, work has again had to take place on the pensions aspect of this case, following the European Court of Justice’s decision in O’Brien v Ministry of Justice concerning fee paid judges in the Judicial Pension Scheme. The judgment held that remedy could extend back before the Part-time Workers Directive was required to be implemented on 7 April 2000.  As a binding judgment, that finding applies across all such claims and therefore the UK Government recognised the right applies to retained firefighters’ claims or potential claims.

After an extended period of negotiations on the scope and mechanics of the settlement, a Memorandum of Understanding (MoU) was agreed by all parties on 9 March 2022. Remedy for retained firefighters affected by the O’Brien judgment will be provided by way of a second options exercise allowing in-scope individuals the opportunity to purchase pension entitlement as a special member of the FPS 2006.

31 March 2023

On 31 March 2023, the Home Office launched their formal consultation on Retained Firefighters' Pensions: Proposed Changes to the Firefighters' Pension Scheme (England) 2006

This consultation focuses on the government’s commitment to provide further remedy to those individuals who were employed as retained firefighters between 7 April 2000 and 5 April 2006 inclusive by providing access to the modified section of Firefighters’ Pension Scheme 2006 (referred to as ‘the modified scheme’). It contains the proposed amendments to the Firefighters’ Pension Scheme (England) Order 2006 and the Firemen’s Pension Scheme Order 1992 to achieve this outcome. This consultation document seeks views on proposals for achieving this outcome, and whether the proposed amendments achieve this policy intention for all eligible individuals.

The consultation will close on 9 June 2023.

8 September 2023

On 8 September 2023, the Home Office published their consultation response to the Retained Firefighters' Pensions: Proposed Changes to the Firefighters' Pension Scheme (England) 2006.

The Firefighters’ Pension Schemes (England) (Amendment) Order 2023 were been laid in Parliament.

The regulations came into Force on 1 October 2023. 

9 July 2024

Following the regulations coming into force on 1 October 2023, there has been/is significant interest from those individuals who are in scope for this second options exercise, with some FRAs having received/are receiving large volumes of Expressions of Interest forms.  To support the sector in progressing the Matthews implementation, the SAB have agreed that it would be sensible to have a suggestive priority order for the processing of Matthews cases.

The priority has been agreed as follows:

• Priority 1 – Immediate entitlement i.e. Special Pensioners or potential to be a Special Pensioner
  • Individuals who currently have no benefits in payment but would be immediately entitled to a backdated award should they elect for Matthews.
  • Individuals who currently have a pension in payment and would be due a top-up if they elected for Matthews
  • Deferred Benefits (DB) into payment i.e. an individual who is over age 60 and has a DB entitlement under Matthews
  • Potential ill health cases
    • These could either be active Firefighters who are known to be suffering from ill health or individuals who have left the FRS and are either currently a deferred member or are entitled to be a deferred member under Matthews.
  • Deceased cases
• Priority 2 – Imminent entitlement
  • Special Firefighters or Special Deferred but entitled to become a Special Pensioner before 31 March 2025

• Priority 3 – Not immediate/imminent
• Special Firefighters or Special Deferred but not entitled to become a Special Pensioner before 31 March 2025

A template Matthews - Priority order letter is available for FRA's to use to explain the reason for the delay in providing calculations.

Not dealing with the Matthews exercise in the legislative timeframe will result in a breach which, if deemed material, will require reporting to The Pension Regulator (TPR).

Guides and other communications related to the second options exercise are listed in the table below split between member and employer: