PENSION AND CONDITIONS OF SERVICE CHANGES - UPDATE

DON’T SHOOT THE MESSENGER!

Following the recent RFU bulletin on pension and conditions of service changes, see this Website, we have been receiving a number of requests for further information. In order to assist members these queries and the answers will be added to this website. updated after the RFU's meeting with the Fire Service Minister on 13 Feb '06

Q
 Why are bounty payments being withdrawn?
A
 This was part of the agreement to end the 2002/3 strike on the basis that the Bounty for RDS personnel was in lieu of a pension, and once a pension was available the bounty would cease.
 
Q
 Who agreed this?
A
 The FBU negotiated this as part of their agreement with the National Employers to end their strikes.
 
Q
 Were RDS personnel fully consulted about this change?
A
 Not to our knowledge.
 
Q
 I have served for over 19 years and I have already earned four-fifths of my 20 year bounty. Surely my employer cannot refuse me payment?
A
 You only become entitled to receive the bounty payment when you have completed 20 years service. You do not qualify for part payment, because this only applies if you leave the Service.
 
Q
 Why do I lose my Bounty entitlement on 6th April, but nobody has yet been able to tell me about my pension rights, as these have not yet been resolved?
A
 Because that is what the FBU negotiated-the bounty would cease as soon as the Pension scheme came into being
 
Q
 What are the RFU doing about this?
A
 We were not party to the agreement to end bounty payments-this was done by the FBU. However, we have had meetings with representatives of the National Employers, and we have written to them urging a rethink on the basis that:
  • The Bounty should continue for those who do not join the new Pension Scheme
  • Payments should be honoured for service already completed towards a Bounty entitlement

We will keep members advised of the outcome
 
Q
 Why do I have to accept worse death and injury protection if I join the new Pension Scheme to gain a retirement pension?
A
 The Fire Service Minister, Jim Fitzpatrick, has agreed at a meeting with the RFU to 'Protect' the pension benefits of RDS personnel who are serving at 6th April 2006. All serving personnel will be able to join the new scheme with injury and death benefits based on their previous service and these will be paid at equivalent wholetime rates of pay.
 
Q
 Will this affect RDS recruitment and retention?
A
 We think this major concession will greatly assist retention.
 
Q
 Will the new Pension Scheme be compulsory for existing RDS personnel?
A
 No
 
Q
 What will be the contributions to the new scheme?
A
 Although not finalised, it is likely you will pay 7.5% and your employer 15%. It has now been determined by Ministers that individuals will pay 8.5%.
 
Q
 When will I be advised of my options for joining the new scheme or staying in the old scheme?
A
 New RDS entrants after 6th April will be eligible to join the new Pension Scheme, and this will be optional for existing personnel. It is expected that by October this year all personnel will have their rights and options explained to them in writing by their employing authority-after the arrangements, still being discussed, are finalised. The RFU is arguing for existing personnel to be able to start contributions from April, rather than waiting until October and then having to fund arrears of contributions back to April.
 
Q
 Will I be able to keep my pension from my primary employment and/or other Stakeholder schemes and join the new Pension Scheme?
A
 Yes- so long as your total pension “pot” does not exceed the Revenue and Customs limit of £1.5m – hardly likely!
 
Q
 I’m in one of the fire and rescue services that already provide a voluntary Stakeholder pension scheme for RDS personnel. What are my options?
A
 The RFU promoted these voluntary schemes some 18 years ago in frustration at the lack of admittance to the Fire Service Pension Scheme. We have told the Employers and Ministers that
  • These schemes should be amalgamated into a national scheme, with an appropriate employer contribution, as a third option for RDS personnel
  • Although a Stakeholder scheme is never likely to produce the same cast-iron benefits as a final salary scheme, they could be attractive to RDS personnel who do not want to give up the current death and injury benefits
  • As many RDS personnel do not stay in the fire and rescue service until retirement, a stakeholder scheme is more flexible as you can take it with you to another employment, whereas if you leave the new Firefighters Pension Scheme early, you will not be able to pick up your benefits until you are aged 65, unless you are able to transfer your benefits to another 'club' scheme.
 
Q
 What is the RFU doing about Pensions?
A
 The RFU is the only union that has been pushing for RDS pensions for over 30 years. We are members of the Committee that advises Ministers and we have written to them asking for:
  • A range of flexible pension options-to suit varying RDS circumstances
  • This should include staying in the current arrangements, with existing death and injury benefits, and the bounty
  • Or, Joining the new scheme, but without reductions in benefits - this has now been agreed
  • Or, having a new flexible and portable Stakeholder Scheme, with an employers contribution that matches the new Pension scheme - we are still arguing for this, but it is unlikely to be agreed.
 
Q
 Why have RDS personnel not been allowed to join the old Pension Scheme?
A
 The RFU is the only union that has been pushing for this, but the official response was that RDS personnel were not eligible under the current legal requirements of that Pension Scheme.
 
Q
 Why was the current Pension Scheme law not changed to admit RDS?
A
 Because this would have precipitated all of the other changes that the FBU are now campaigning against. Proposals for revisions were made by the Government some 7 to 8 years ago, but were dropped due to opposition
 
Q
 Do the current pension proposals for RDS meet the Government’s promises for pension arrangements that “recognise the variety of personal circumstances involved”?
A
 The major change in protecting existing benefits go a long way towards meeting previous commitments.
 
Q
 Is the forthcoming FBU strike about pensions alone?
A
 No.
  • Its about continuing to oppose reform of the fire and rescue service for the benefit of the public we serve
  • Its about opposing co-responder schemes that have clearly been shown to save lives
  • Its about holding back the Retained from providing more flexible, efficient and effective cover in order to preserve restrictive practices and the status quo
 
Q
 Do the proposed Pension arrangements for RDS personnel help to promote the emergence of new hybrid working systems and shift patterns?
A
 No, not yet, but we are working on this.