All Members Circular - Pensions: Significant Breakthrough in Northern Ireland

TO:    ALL MEMBERS

Dear Brother/Sister

PENSIONS: SIGNIFICANT BREAKTHROUGH IN NORTHERN IRELAND

NORTHERN IRELAND GOVERNMENT LISTENS TO THE FBU AND PROPOSES A SCHEME WITH A WORKABLE PENSION AGE

While the DCLG Fire Minister, Brandon Lewis and his team continue with the imposition of an unworkable pension scheme from April 2015 the FBU have been busy negotiating in Northern Ireland trying to get a more workable one.

The Northern Ireland Government took a significantly different approach in respect of their Public Service Pensions’ Act. Following submission of evidence and a presentation by Officials of the FBU, the Assembly agreed an amendment that meant that the Normal Pension Age (NPA) for firefighters must be no more than 60 and no less than 55. This was based on the evidence that NPA 60 was not workable and did not reflect the demands of the occupational, particularly around issues of fitness and age related decline in fitness.

Following negotiations the Northern Ireland Government has now formally offered a scheme for firefighters which has an NPA of 55. The proposed scheme does not address all the points in the FBU trade dispute and is restricted by the HM Treasury imposed cost-ceiling but the NPA proposal is a major departure from the approach taken elsewhere in the UK.

It clearly shows that despite the claims elsewhere, a scheme with an NPA of 55 can be affordable and can be delivered. The FBU will be looking very carefully at this proposal and members in Northern Ireland will get an opportunity to decide what they want to do with the offer.

This development also clearly demonstrates that the FBU is – and has always been - willing to negotiate. But negotiations require goodwill on both sides. Politicians in Northern Ireland, despite not agreeing with us on all issues, have demonstrated such an approach. These discussions clearly show that where such an approach is adopted, progress can be made. Hopefully Mr. Lewis will now stop making his claims that the FBU walks away from negotiations.

There are various issues of concern that have to be considered in relation to these proposals, for example, (around the accrual rate). The scheme will also be restricted by the fixed commutation of 12:1 and the contributions will start at around 12.2% for competent firefighters. The Union’s actuarial and financial advisors have already looked at the initial proposals and have provided advice on them.

What is clear is that if a firefighter can retire at age 55 without any reduction they will be financially better off than their colleagues who get a 47.1% (or 21.8%) reduction as is the current position in England, Wales (or Scotland).

The Executive Council will be considering the details of the proposals at its next meeting. Further details will follow. FBU Officials will be meeting Northern Ireland Civil Servants again next week where this issue will be discussed in more detail.

Any progress made on this issue is down to the hard work and determination of many members of our Union at all levels. Thank you for your continued solidarity and unity.

Best wishes.

Yours fraternally
 

MATT WRACK
GENERAL SECRETARY
 

Local News Areas: