If you leave your employment as a firefighter or opt out of the FPS 2015 and you:
- have at least 3 months' qualifying (calendar length) service or have transferred pension rights into the scheme, and
- are not eligible for immediate payment of a pension because you are not old enough, and
- are not retiring on grounds of ill-health,
then you would be entitled to a deferred pension.
Your active member's pension account would be closed and a deferred member's account would be set up. This account would contain the value of your pension account at the date you leave.
If you return to scheme membership within 5 years of leaving, your deferred member's account would be closed and your active member's account would be re-established as if you had remained in pensionable service during the break, but had received no pensionable pay for that period.
Otherwise, your pension will remain in the deferred member's account until you become eligible to draw it.
If you have an added pension account, your retirement pension will be the total value of your deferred pension account and your added pension, plus indexation.
A deferred pension is normally put into payment at state pension age. However, you can ask for early payment from age 55. If your FRA agrees, your deferred pension will be reduced to take account of the fact that it will be paid for longer.
Reductions are worked out by the Scheme Actuary and are shown in the table below. These are the current factors and are subject to change.
FPS 2015 deferred early retirement factors
|Age payable||State Pension Age 66||State Pension Age 67||State Pension Age 68|
|Age 66||Payable in Full||5.8%||11.0%|
|Age 67||Payable in Full||5.8%|
|Age 68||Payable in Full|
A deferred pension can also be paid earlier if you become incapable of undertaking regular employment and this incapacity will continue at least until deferred pension age. For early payment on health grounds, the pension would be paid without reduction.
A deferred pension that is put into payment will be increased in line with the Pensions Increase Orders (i.e. "cost of living" increases) that have applied since your date of leaving.
Part of the annual pension after any reduction can be converted to provide a lump sum – see how much lump sum can I take?
Alternatively, you may be able to transfer your deferred pension to a new employment.