Submitted by SWFBU on
To: All Members
Dear Brother/Sister,
REVISED COMMUTATION FACTORS FOR THE 1992 FIREFIGHTERS’ PENSION SCHEME (ENGLAND)
The Department for Communities and Local Government sent out a notification on 20 May 2014 outlining a revision of the 1992 FPS commutation factors. It is disappointing that the union was not given any prior notice to this change.
The revision is part of a process carried out by the Government Actuary’s Department designed to ensure that the commutation factors remain cost neutral and can mean that they can be increased or decreased to reflect their advice. In recent years the factors have increased but on this occasion the factors have been reduced. The upshot of this is that because these factors are slightly lower than the previous ones they will affect the lump sum of individuals in the FPS in England retiring after 20 May 2014.
This move does raise serious questions around the governments own argument that firefighters are living longer thereby need to work longer. Lowering the age related factors in this way actually suggest that the previous assumptions on mortality in firefighters has been overestimated. The union will be raising this and other issues in relation to this.
The full table attached will be used from 20 May 2014.
Best wishes.
Yours fraternally
MATT WRACK
GENERAL SECRETARY
