Submitted by SWFBU on
TO: ALL MEMBERS
Dear Brother/Sister
PENSIONS: FBU SUBMITS LEGAL CHALLENGE TO DCLG REGULATIONS ON FLEXIBLE RETIREMENT OPTIONS
Last Thursday (6 November 2014) the FBU submitted a legal challenge to the Secretary of State for Communities and Local Government in relation to the way in which the proposed pension regulations set out the flexible retirement from the 2015 scheme’s minimum pension age of 55. At present this challenge is restricted to England. The Executive Council is monitoring this in relation to the discussions elsewhere and it is possible, depending on these, that further challenges may be submitted on the same issue.
The union submitted a pre-action letter on this matter in June this year. At that time the government response was that no final decision had been taken and therefore any legal action would be premature. The potential FBU legal challenge and the DCLG consideration of it were clearly significant factors in the recent delay by DCLG in laying the pension regulations before Parliament.
Now that the regulations have been put before Parliament the issue has been resubmitted.
In brief, the challenge is based around how the actuarial reduction in the 2015 scheme is calculated. The FBU have therefore demonstrated why the current proposals are not, in our view, cost neutral and scheme members are disadvantaged by the method used.
The union has been trying to resolve this issue through negotiation but DCLG have confirmed that they will not be amending their method of calculating the actuarial reduction applied. This is in contrast to the approach taken on this issue by both the Welsh Government and the Scottish Government. The Scottish Government has confirmed that they will be using the alternative method identified by the FBU. As a result the reduction at age 55 will be 9% instead of the 21.8% in England. The Welsh Government has also indicated that they will be publicly consulting on a reduction of around 9% rather than the 21.8%. In Northern Ireland the proposed pension does not involve any reduction as it is based on a scheme with a normal pension age of 55 instead of 60.
If the FBU is successful in this challenge it has the potential to significantly improve the 2015 benefits available at age 55.
At the recent meeting of Brigade Officials in Liverpool this legal challenge and its importance was explained in more detail by head office officials.
The FBU is preparing other legal challenges in relation to other elements of the 2015 scheme proposals. Such challenges can also be submitted now that the legislation has been laid before Parliament. These other challenges may also involve Wales, Scotland and Northern Ireland although discussions are ongoing to see if they can be resolved through negotiation rather than resorting to legal measures.
FBU members can be sure that any challenge which will potentially benefit members and where we are advised there is a realistic chance of success, will be examined by the Executive Council and will be registered against the Government. Members will be kept informed of any developments.
Further updates on other pension matters will be issued later this week.
Best wishes.
Yours fraternally
MATT WRACK
GENERAL SECRETARY
TO: ALL MEMBERS
Dear Brother/Sister
PENSIONS: FBU SUBMITS LEGAL CHALLENGE TO DCLG REGULATIONS ON FLEXIBLE RETIREMENT OPTIONS
Last Thursday (6 November 2014) the FBU submitted a legal challenge to the Secretary of State for Communities and Local Government in relation to the way in which the proposed pension regulations set out the flexible retirement from the 2015 scheme’s minimum pension age of 55. At present this challenge is restricted to England. The Executive Council is monitoring this in relation to the discussions elsewhere and it is possible, depending on these, that further challenges may be submitted on the same issue.
The union submitted a pre-action letter on this matter in June this year. At that time the government response was that no final decision had been taken and therefore any legal action would be premature. The potential FBU legal challenge and the DCLG consideration of it were clearly significant factors in the recent delay by DCLG in laying the pension regulations before Parliament.
Now that the regulations have been put before Parliament the issue has been resubmitted.
In brief, the challenge is based around how the actuarial reduction in the 2015 scheme is calculated. The FBU have therefore demonstrated why the current proposals are not, in our view, cost neutral and scheme members are disadvantaged by the method used.
The union has been trying to resolve this issue through negotiation but DCLG have confirmed that they will not be amending their method of calculating the actuarial reduction applied. This is in contrast to the approach taken on this issue by both the Welsh Government and the Scottish Government. The Scottish Government has confirmed that they will be using the alternative method identified by the FBU. As a result the reduction at age 55 will be 9% instead of the 21.8% in England. The Welsh Government has also indicated that they will be publicly consulting on a reduction of around 9% rather than the 21.8%. In Northern Ireland the proposed pension does not involve any reduction as it is based on a scheme with a normal pension age of 55 instead of 60.
If the FBU is successful in this challenge it has the potential to significantly improve the 2015 benefits available at age 55.
At the recent meeting of Brigade Officials in Liverpool this legal challenge and its importance was explained in more detail by head office officials.
The FBU is preparing other legal challenges in relation to other elements of the 2015 scheme proposals. Such challenges can also be submitted now that the legislation has been laid before Parliament. These other challenges may also involve Wales, Scotland and Northern Ireland although discussions are ongoing to see if they can be resolved through negotiation rather than resorting to legal measures.
FBU members can be sure that any challenge which will potentially benefit members and where we are advised there is a realistic chance of success, will be examined by the Executive Council and will be registered against the Government. Members will be kept informed of any developments.
Further updates on other pension matters will be issued later this week.
Best wishes.
Yours fraternally
MATT WRACK
GENERAL SECRETARY
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