Two pensions/split pension
In this section
The two pension award helps protect firefighters whose pensionable pay is reduced.
What is two pensions?
Protection from reductions in pay
Your pension from the firefighters’ pension scheme 2006 is calculated using the value of your average pensionable pay at the date you retire.
The two pension (also known as split pension) award helps protect firefighters whose pensionable pay is reduced at any point between 1 April 2007 (when the award was introduced) and 31 March 2022 (when all members were moved to the firefighters’ pension scheme 2015).
Why might my pay have been reduced?
Examples
The reduction in pay might be:
- Because of taking a different role
- Because you are entitled to a different rate of pay in your existing role.
Your options
The best choice for you
If your pay was reduced, at retirement, you have the option select either:
- Your ‘split’ pension – described in more detail below; or
- The pension you would receive based on your average pensionable pay at the date of retirement.
How does two pensions work?
An explanation
Your split pension uses your pay before the reduction to calculate some of your pension, as well as the value of your reduced pay. This means that some of your pension would be based on the higher pay - protecting you from the impact of the reduction.
How a split pension works:
- The pension you built up before your pay was reduced would be calculated and then become deferred (held in the firefighters’ pension scheme 2006) until you retire. It is increased each year to keep up with inflation.
- You would then build up a new pension based on the lower pay for the rest of your service in firefighters’ pension scheme 2006.
When you retire, you would receive both parts of the pension.
Comparing your benefits
Taking the most valuable benefits
If at retirement you would be better off by not splitting your pension, you can ask your administrator to cancel the two pension award. Your administrator will be able to help you compare the benefits and pay the higher amount.