Additional pension benefits
In this section
Additional pension benefits ensure that non-regular pay is taken into account when your pension is calculated.
What are additional pension benefits?
Considering non-regular pay
In the firefighters’ pension scheme 2006 (special), your pension is calculated using your average pensionable pay. Generally this does not include non-regular pay, such as pay for:
- Allowances to reward additional skills and responsibilities;
- Temporary promotion; or
- Performance related pay that is not included within basic pay.
Additional pension benefits ensure that pay like this is taken into account when your pension is calculated.
Additional pension benefits were first introduced to cater for the impact on pensionable pay of the phasing out of the long service increment and the introduction of continual professional development payments.
Your fire and rescue authority will make the final decision about the pay which can be used towards an additional pension benefit or not.
How are they worked out?
Calculations
Example
Additional pension benefits
The calculation is:
Pension contributions (employee and employer) / age related factor = additional pension benefit
To ensure the value of your additional pension benefit keeps up with the cost of living, it is increased each year in line with inflation.
You and your employer will have paid a pension contribution based on the non-regular pay that you received.
Every 1 July, the total contributions paid by you and your employer over the previous 12 months are added together. This amount is used to buy an amount of additional pension benefit for that year, using an ‘age related factor’ provided by the Government Actuary’s Department.
When can I take my additional pension benefit?
Retirement
When you retire from the firefighters’ pension scheme 2006 (special), the value of each year’s additional pension benefit is added together and paid at the same time as your main pension.
You also have the choice to take part of you additional pension benefit as a lump sum, in the same way you can with your main firefighters’ pension scheme 2006 (special) pension.