Contributions

Background
Public service pension schemes undergo four-yearly scheme valuations, which are undertaken by the Government Actuary’s Department. The 2020 firefighters’ pension scheme (England) valuation looked at the cost of benefits accruing over the implementation period from 1 April 2024 to 31 March 2027, and the results were used to set the employer contribution rate which was increased from 28.8% to 37.6% on 1 April 2024.

Member Contribution Yield
Employer rates are calculated based on an assumption that a certain level of contributions will be made by scheme members over a certain period. The target yield was set at 13.2% of pensionable pay. Government Actuary's Department has reviewed the contribution rate structure and have confirmed that the current yield is 13%, which is 0.2% under the target.

HM Treasury has instructed the Ministry of Housing, Communities and Local Government that action needs to be taken to attain the target of 13.2%.

Between 20 November 2024 and 29 January 2025, a consultation was held to review the existing contribution rate structure and take steps to ensure the member yield can be achieved.  

The consultation focused on three key areas:

• Banding Structure – Whether the current four-tier model remains appropriate for the workforce.
• Determination of Pay for Contribution Thresholds – The current approach uses whole-time equivalent pay. Views were sought on whether this is fair, particularly for part-time and retained firefighters.
• Futureproofing – Whether contribution bands should increase annually to keep pace with pay growth.

Outcome of Consultation
On 8 December 2025, the outcome was published confirming that, with effect from 1 April 2026, the contribution structure will be amended as follows:

• An additional band will be introduced, increasing the bands from four to five.
• Contributions will be based on actual pay rather than wholetime equivalent pay.
• From April 2027 the bandings will be increased each April in line by consumer price index to allow for futureproofing.

New Contribution Banding Structure (from 1 April 2026)

Tier	Actual Pay	Rate
1	£0 to £36,130	11.09%
2	£36,131 to £45,407	12.59%
3	£45,408 to £66,908	14.09%
4	£66,909 to £190,691	15.59%
5	£190,692 and above	17.09%

What This Means for You

• Whole-time equivalent pay to actual pay: From 1 April 2026, your contribution rate will be determined based on the actual pensionable pay received rather than the wholetime equivalent pay. This will be a change for part-time and retained firefighters, whose banding will now be based on their actual pay instead of the wholetime equivalent pay for their role.
• Annual Assessment: Your fire and rescue authority will determine the initial contribution rate at the start of each scheme year (1 April). For new joiners this will be assessed on date of joining.
• Pay changes during the year: fire and rescue authorities should adjust contribution bands where a change in pensionable pay is permanent or expected to continue for the foreseeable future.
• Multiple employments: If you have more than one firefighter job, each job is treated separately. A distinct contribution rate is set for each employment based on the actual pay for that specific role.

To determine the appropriate banding, in April, a member’s pensionable pay in that month will be multiplied by 12 (or 13 if you have a 4-weekly pay frequency) and compared to the bandings in the table above.

 

Pensionable pay is similar to your salary but has a specific definition.

Pensionable pay includes:

• Pay received for the performance of the duties of your role, except for any allowances or emoluments paid on a temporary basis;
• Your permanent elements of pay (including, in the case of a retained firefighter, any retaining allowance);
• Any amount you agree to give up for salary sacrifice arrangements such as cycle to work schemes;
• The amount paid for continued professional development (CPD) if the authority has determined that this should be pensionable.

Any payments made by an employer to a member who is on reserve forces service leave would not count as pensionable.