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<p> </p><p>The consultation on the draft regulations has now concluded and whilst
final decisions are still to be taken on the detail of the scheme design, representative
bodies and the employers were informed on 9 July that the Department had decided to
reinstate the offer made in June last year, regarding more generous actuarial reductions
to the pensions of firefighters who retire between the ages of 55 and 57. The actuarial
reduction rate applied to benefits accrued in the 2015 scheme would be 21.8 per cent
at age 55, and 17.9 per cent at age 56, using today’s assumptions. This compares favourably
with the Firefighters’ Pension Scheme 2006, where the reduction at age 55 is around
40 per cent, and at age 56 is around 38 per cent. All pension benefits built up by
a member in their current scheme will be fully protected, calculated on their final
salary, and can be taken on retirement from the member’s current pension age without
actuarial reduction. On top of this, as set out in the recent consultation, our proposals
include a significant reduction in employee contribution rates for firefighters transferring
from the 1992 Scheme to the 2015 Scheme. Contributions for such a firefighter earning
£29,000 a year will go down from 14.2 per cent to 12.2 per cent in April 2015.</p><p>
</p><p> </p><p> </p><p>Despite these arrangements, the Fire Brigades Union has continued
with its campaign of strike action. Progress towards resolving this dispute remains
entirely in their hands.</p><p> </p>
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