Public Sector & Occupational Pensions UKFirefighter Pension Scheme Guide UK — Benefits, Contributions, and Retirement
How the Firefighter Pension Scheme works, contribution rates, retirement ages, and what firefighters receive in pension benefits.
The Firefighters’ Pension Scheme is one of the most valuable pension arrangements in the UK public sector, with a retirement age of 60 and generous benefits. This guide explains how it works.
The Scheme Types
| Scheme | Period | Type | Normal pension age |
|---|
| FPS 1992 | Pre-April 2006 | Final salary | 50 (25+ years) or 55 |
| FPS 2006 | April 2006 – March 2015 | Final salary | 60 |
| FPS 2015 | April 2015 onwards | Career average (CARE) | 60 |
Most firefighters are now in FPS 2015. If you joined before 2015, your earlier service is protected in the previous scheme, but new accruals are in FPS 2015 (following the McCloud remedy).
FPS 2015 — The Current Scheme
| Feature | Detail |
|---|
| Type | Career Average Revalued Earnings (CARE) |
| Accrual rate | 1/59.7th of pensionable pay per year |
| Normal pension age | 60 |
| Revaluation | CPI (Consumer Price Index) |
| Lump sum | Optional — commute pension for lump sum (not automatic) |
| Index-linking in retirement | CPI — pension increases each year |
How the Pension Builds Up
| Year | Salary | Pension accrued that year | Approximate cumulative pension |
|---|
| 1 | £34,000 | £570 | £570 |
| 5 | £36,000 | £603 | ~£3,000 |
| 10 | £38,000 | £637 | ~£6,400 |
| 20 | £42,000 | £704 | ~£14,000 |
| 30 | £46,000 | £771 | ~£22,500 |
Cumulative figures are simplified and don’t include CPI revaluation of earlier years, which would increase them.
Contribution Rates (FPS 2015)
| Pensionable pay | Contribution rate |
|---|
| Up to £28,000 | 11.0% |
| £28,001 – £52,000 | 12.9% |
| £52,001 – £92,000 | 13.5% |
| £92,001 – £163,000 | 14.5% |
| Over £163,000 | 14.5% |
Thresholds are subject to review. Most firefighters fall in the 12.9% band.
Is It Worth the High Contributions?
| What you put in | What the employer puts in | Total |
|---|
| ~12.9% | ~28.8% | ~41.7% |
For every £1 you contribute, the employer contributes roughly £2.20. This is employer-funded benefit that you can’t replicate in a private pension.
FPS 1992 (Closed Scheme)
| Feature | Detail |
|---|
| Accrual rate | 1/60th per year |
| Basis | Final salary |
| Retirement age | 50 (with 25+ years) or 55 |
| Maximum pension | 40/60ths (2/3rds) of final salary |
| Automatic lump sum | Yes — in addition to pension |
| Commutation | Can exchange pension for additional lump sum |
FPS 2006 (Closed Scheme)
| Feature | Detail |
|---|
| Accrual rate | 1/60th per year |
| Basis | Final salary |
| Retirement age | 60 |
| Lump sum | Optional commutation (no automatic lump sum) |
Comparing the Three Schemes
| Feature | FPS 1992 | FPS 2006 | FPS 2015 |
|---|
| Accrual rate | 1/60th | 1/60th | 1/59.7th |
| Basis | Final salary | Final salary | Career average |
| Normal pension age | 50-55 | 60 | 60 |
| Contribution rate | 11% | 8.5%-12.5% | 11%-14.5% |
| Lump sum | Automatic | Optional | Optional |
| Revaluation | N/A (final salary) | N/A (final salary) | CPI |
McCloud Remedy
| Detail | Explanation |
|---|
| What happened | Members close to retirement in 2015 were given transitional protection (stayed in old scheme); younger members were moved to FPS 2015 |
| Why it was a problem | Age discrimination — younger members in a less favourable scheme |
| The remedy | All service between 2015 and 2022 is treated as if it was in the legacy scheme, with a choice at retirement |
| Who’s affected | Members who were in service on both 31 March 2012 and 1 April 2015 |
| What to do | You’ll be given a choice — legacy or reformed scheme benefits for 2015-2022 service |
Additional Benefits
Death in Service
| Benefit | Amount |
|---|
| Lump sum | 3 × pensionable pay |
| Survivor’s pension | Approximately 50% of your pension entitlement |
| Children’s pension | Payable to eligible children |
Ill-Health Retirement
| Tier | Condition | Benefit |
|---|
| Tier 1 | Permanently unable to be a firefighter | Accrued pension (no enhancement) |
| Tier 2 | Unable to do any regular employment | Accrued pension + enhancement to normal pension age |
Injury Award
If your ill-health is caused by your service, you may receive an additional injury award on top of ill-health retirement benefits.
Tax Considerations
| Issue | Detail |
|---|
| Annual Allowance | £60,000 — pension growth counts. Promotions or pay rises can trigger a tax charge |
| Annual Allowance charges | If your pension grows by more than £60,000 in a year (including employer contributions) |
| Scheme Pays | The pension scheme can pay any Annual Allowance charge on your behalf (deducted from your pension) |
| Tax-free lump sum | Up to 25% of your pension value can be taken as a tax-free lump sum |
| Income tax | Pension income is taxed as earned income through PAYE |
Tips for Firefighters
- Check your annual benefit statement — understand what you’re building up
- Understand the McCloud remedy choice — if affected, carefully compare legacy vs reformed scheme benefits
- Watch for Annual Allowance issues — especially around promotions
- Consider AVCs — Additional Voluntary Contributions for extra tax-efficient savings
- Plan the gap — if retiring at 60, your State Pension doesn’t start until 67-68
- Nominate your beneficiaries — ensure your expression of wish form is up to date
- Get advice before retirement — free guidance from the Fire Brigades Union or an independent financial adviser
| Organisation | Role |
|---|
| Your Fire and Rescue Service pension team | Manages your pension |
| Fire Brigades Union (FBU) | Pension guidance and advocacy |
| Local Government Association | FPS scheme advisory board |
| MoneyHelper | Free pensions guidance |
Summary
| Feature | FPS 2015 |
|---|
| Accrual rate | 1/59.7th per year |
| Pension age | 60 |
| Contribution | 11%–14.5% |
| Employer contribution | ~28.8% |
| Final salary or career average | Career average |
| Lump sum | Optional commutation |
| Death in service | 3× pay + survivor’s pension |
| Ill-health | Tiered benefits |