Submitted by SWFBU on
8 October 2012
TO: ALL MEMBERS
Dear Brother/Sister
FIREFIGHTER PENSIONS UPDATE AND THE CHALLENGES AHEAD
Members will be aware that despite Governments’ so called ‘final offer’ for a new Fire Service pension scheme and despite the proposals in the Public Service Pension Bill there is no agreed position on pensions proposals with the FBU.
Currently the CLG review of Normal Pension Age (NPA) is undertaking the work of collating evidence. This review is due to report its findings by the end of the year. Government officials at CLG are also considering the information they have gathered following its review of the impact of the first year contributions before deciding on any future employee contribution increases.
Review of NPA
The FBU is the employee representative on the NPA review team and attended the initial meeting on 21 September 2012. You will be aware of the amount of evidence we have already submitted supporting our concerns. This included evidence on redeployment opportunities, the unworkable proposal for an NPA of 60, fitness standards and expectations among other things. This information has been made available via circulars and can be accessed on the Pensions section of the FBU website. ( www.fbu.org.uk )
It is important to note that to-date the FBU is the only organisation that has provided any evidence on these issues for consideration.
The chair of the NPA review is Dr Tony Williams. He was appointed by the previous English Fire Minister Bob Neill. Dr. Williams has a background in workplace fitness and related issues. We have already clearly expressed the view that, while fitness standards are a key factor for consideration, they cannot be the only matter considered under this review. Despite this concern we continue to engage with the review and to provide evidence. We have made clear to Dr Williams and to the CLG Fire Minister that we will not in any way endorse a report unless we are convinced of the conclusions and that all matters have been adequately considered.
At a review meeting on 21 September 2012 the FBU raised a number of concerns, especially around, the current focus of the review on firefighter fitness levels. We explained that the Terms of Reference clearly identify a range of factors which will need to be taken into account. These concerns were subsequently raised in a letter to Dr Williams and subsequently at the most recent Firefighters Pension Committee (3 October 2012).
In response, we have received confirmation that, although the review is initially looking at fitness standards for all roles, the other issues contained in the Terms of Reference will not be ignored. It is important that members recognise that whilst we engage in the review we will challenge any report which ignores the evidence already presented or fails to take account of the whole range of issues which need addressing (e.g. financial, operational, structural and actuarial matters).
The FBU is continuing to gather evidence to support our concerns that the NPA of 60 is unworkable and unrealistic. We are also planning to submit at least one document to the review further outlining our position. This document may be one of many depending on any recommendations that emerge. As has been the case thus far any FBU submissions will be made available to members.
Employee contribution rates
You will be aware that the Year 1 employee contribution increases were not as high as those which were initially proposed. These rates, however unwelcome, represented the lowest percentage increase in the unfunded public service pension schemes (including the police scheme).
The decision of Government not to impose the full increase was only achieved by the pressure placed on the decision makers by the evidence provided by the FBU. The single most important factor was probably the information provided by the independently run YouGov survey. This survey allowed us to present hard evidence and real financial arguments showing the potential problems which might arise from the proposed increases.
Year 2 contributions are now being considered and the consultation process will probably commence in November. We must prepare for this in exactly the same way as we did last time and pay as much attention to our detailed arguments as before. The Executive Council have agreed that a further YouGov survey should be undertaken. This is currently being arranged and members will again be asked to take part in this exercise. More details of this will be made available shortly.
Protection
Members have also raised concerns around the protection arrangements in the final offer document, once again I must stress that nothing in the final offer is agreed and the FBU does not think the current protection arrangements are suitable. We continue to discuss these matters in details with officials from CLG.
Next steps
The pension campaign is far from over. The current Government proposals are unworkable, unrealistic, unsustainable, and therefore remain unacceptable.
We are continuing to gather information to evidence our concerns and are currently involved in the NPA review and the review of contribution rates. We shall also be raising our concerns in relation to the Government’s Pensions Bill when it is debated in the House of Commons on 22 October. A Pensions Bulletin will shortly be issued on this matter. The bulletin is also intended to be used as an aid to briefing MPs and other politicians.
Please make full use of the forthcoming briefing/bulletin. Members are also asked to take part in the forthcoming YouGov survey and to keep abreast of developments on pensions matters. The next few months will be crucial in this campaign.
Best wishes.
Yours fraternally,
MATT WRACK
GENERAL SECRETARY
