Row over firefighter pension plan

The firefighters' scheme is too expensive, the government says

Plans to make future firefighters work an extra 10 years before they can qualify for a full pension have been announced by the government.

From 2006 new recruits will have to work for 40 years to get a full pension, rather than 30 as at present.

They will also have a standard retirement age of 60, instead of 50.

The government wants to cut the cost of the fire brigade scheme. However, the Fire Brigade Union (FBU) said it was "fundamentally opposed" to the reforms.

Union anger

The FBU general secretary Matt Wrack was unhappy with the government's announcement.

"Our scheme is not over generous nor is it inflexible," Mr Wrack said.

"We pay far more contributions than most and get out what we put in," he said.

It is right that we modernise firefighters' pensions Local Government Minister Phil Woolas

"We are fundamentally opposed to the government's proposals. It would create a workforce with two-tier benefits with a worse pension for new entrants" he added.

The proposals follows two consultations with the FBU and the local authority employers.

The union expects proposals for changes to the scheme covering existing firefighters to be published next week.

Thursday's plans are part of a general attempt to reduce the cost of public service pension schemes, which are funded out of taxation rather than being paid for by a return on investments.

Earlier this year civil servants went on strike in protest at proposals to raise their retirement age to 65. Big changes have also been suggested for the NHS and teachers 'pension scheme.

Key changes

The key features of the proposed changes to the firefighters scheme are:

• Existing firefighters can stay in their current scheme, though even they will have to work until at least 55 from the year 2013, in line with a change in the law affecting all pension schemes.
• Current firefighters can chose to switch to the new scheme in 2006, along with new recruits to the service.
• Members of the new scheme will pay lower contributions - between 6.5% and 8% of salaries rather than 11% under the current scheme. This will save them between £750 and £1,150 a year each.
• To get a full pension worth two thirds of final salary, members of the new scheme will have to work for 40 years - rather than 30. They will also have a normal retirement age of 60. At present firefighters can retire at 50 on a full pension if they have worked for just 30 years.

Expensive?

Local Government Minister Phil Woolas said the present pension scheme is too expensive, equivalent to 37.5% of total salary costs.

"We want a new scheme which is generous but affordable for both firefighters ands the taxpayers that fund them and changes to the existing scheme will help limit future cost," Mr Woolas said.

But an FBU spokesman accused the government of being opportunistic.

"For many years the cost of paying retired firefighters was covered entirely by the contributions from serving staff, simply because there weren't many retired firefighters," he said.

"Now their numbers have built up the government is complaining about having to actually dip into its own pocket to make good its promise."

The FBU fought and lost a bitter strike with the government over pay and conditions.