Welcome

Proposed Pension Cuts

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UK Debt

Government says;• The UK debt is the worst in living

memory

• We must all make sacrifices to get the debt paid off

George Osbourne says;• We are all in this together

Do you see George and other MP’s leading the way with sacrifices?

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UK Debt

It doesn’t get any worse than that does it

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UK Debt

The previous graph was is a small section taken from the one below but the government and some newspapers like to use it to justify the

public sector cuts the government announced BEFORE the Hutton review had been completed.

Or does it?

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• for your pay being frozen for at least 2 years despite inflation running at over 5% for the last 2 years.

That’s a £3k devaluation in wages for a FF so far!

• why you must work longer, pay more and get less pension entitlement

The only reason is political spin; to be seen to be cutting public

spending

UK Debt is NOT the reason;

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Work longer, pay more and get less• Pension up rating mechanism changed from RPI

to CPI• Contributions to rise from 2012. By 2014 a FF

will pay £350 per month

Both existing pension schemes end in 2015 and a new one introduced for everyone

which includes;

• Min. age to receive full pension will be 60 for all• Career average scheme not final salary• Regularly rising contribution rates as pension

scheme changes to “Cap n Share”

You can’t deny, it’s an attractive proposition!

Pension Cuts

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This change has already happened as it was introduced in the 2011

budget.

• Pensions are devaluing as a result of this imposition as CPI does not keep up RPI.

• This change will decrease the maximum commutation sum for a FF by approximately £10k.

• The FBU and some other public sector unions are challenging this legally. The case is scheduled to go to court in October.

RPI to CPI

April 2011

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• No public service workers pay more in contributions than the 11% FF’s already pay into the FPS

• Government wants a 3.2% rise for all* public services. This would take a FF’s contributions to 14% (£351pm), 11.7% for NFPS (£292pm), whilst many other public sector workers would still pay less than 8%

• Phased contributions; FF 14.2% up to AM’s who will pay 17%

Rise in contributions

From 2012

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Minimum Retirement age 60

rating 18-25 26-35 36-45 46-55 56-65 65+excellent > 60 > 56 > 51 > 45 > 41 > 37 good 52-60 49-56 43-51 39-45 36-41 33-37 > average 47-51 43-48 39-42 35-38 32-35 29-32 average 42-46 40-42 35-38 32-35 30-31 26-28

rating 18-25 26-35 36-45 46-55 56-65 65+excellent > 56 > 52 > 45 > 40 > 37 > 32 good 47-56 45-52 38-45 34-40 32-37 28-32 > average 42-46 39-44 34-37 31-33 28-31 25-27 average 38-41 35-38 31-33 28-30 25-27 22-24

Men Age (years)

Women Age (years)

Proposed new pension scheme

The table below shows the VO2 Max values for age and

sex

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• Current VO2 Max pass mark is 42• Few men will be able to reach the VO2

Max above age 55• Virtually no women will be able to

reach the VO2 Max above age 55

This will not be covered under ill health retirement

• Those who cannot reach the fitness standard will be sacked under capability as there are simply not enough non operation roles available to redeploy all these members

Minimum Retirement age 60

Proposed new pension scheme

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Anyone who joined the fire service after age 20 will not be

able to accrue a full pension entitlement by age 60.

Many will have to work much longer to avoid a poverty

stricken retirement, although ironically, their retirement will

be far shorter as a result.

Minimum Retirement age 60

Proposed new pension scheme

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Promotion leads to loss of pension as well as even higher rises in contributions up to an

initial rate of 17%Up rating mechanism for

average salary indexing will be CPI not RPI which means the

pension you finally receive will be vastly devalued from a final

salary equivalent.

End to final salary scheme

Proposed new pension scheme

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•This means that the employers percentage of contribution to the pensions are frozen whilst the employees contributions rise at regular intervals

•There will come a time when members of the scheme pay a higher contribution rate than the employers

Cap n’ Share

Proposed new pension scheme

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Fire Fighters are a special case

Private sector workers average around 5.2%

J ob Contribution as % of salary

Firefighter (FPS) 11%Police (Old scheme) 11%Police (New scheme) 9.50%Firefighter (NFPS) 8.50%NHS 5% - 8.5%Local government 5.5% - 7.5%Teacher 6.40%Civil servant 1.5% - 3.5%Military 0%

Public sector pensions (England,

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The FPS was reviewed and reformed in 2006

• The NFPS was introduced for new joining members in 2006

• The rest of the public sector cannot claim the same and as such we should be exempt from further changes as we’ve already modernised

It is highly likely we can force the government to rethink this second

round of cuts for FF’s but it will take more than words to do so....

Fire Fighters are a special case

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The government has concluded consultation with the TUC on its

proposed public sector pension cuts. It will now start 3 months of union specific

consultation.We must show the government we are not

prepared to roll over before they make the statutory changes to the pension schemes after the consultation period

ends.

We must all support the model resolution. The time to fight back

has arrived.

Consultation & Action

thank you