As a member of the Firefighters' Pension Scheme 2015, you have the option to purchase Added Pension in order to increase your retirement benefits.
There are options available to suit your personal circumstances but there are also limitations that you need to be aware of.
The option to purchase Added Pension by periodic payments - to spread the cost - will only be available to you providing you are younger than age 58 at the start of the scheme year in which you will be purchasing Added Pension. Payment by lump sum can only be made if you are applying within 12 months of becoming a firefighter with your Fire & Rescue Service.
If you are an active member of FPS 2015 in more than one employment, only one added pension account can be opened.
The overall limit of Added Pension is currently £7,041 (for 2020/21). This limit will be increased at the start of every scheme year in line with inflation, unless otherwise specified by the Treasury.
If you wish to purchase Added Pension, you have a number of options:
Payment by Lump Sum:
You may have the option to purchase Added Pension by a one off lump sum, providing you are applying within 12 months of becoming a firefighter with your Fire & Rescue Service.
Payment by Periodical Contributions:
You have the option to purchase Added Pension by making periodical (monthly) contributions on top of your ordinary scheme contributions.
There are a number of different methods of paying periodical contributions:
You may pay periodical contributions as a fixed percentage of your salary (e.g. 5%).
You may pay periodical contributions as a fixed sum from your salary (e.g. £100 per month).
If you didn't want to pay these periodical payments from your pensionable pay, your Fire & Rescue Authority's scheme manager may agree some other method of payment.
Please note you have the option of paying for Added Pension for 1 scheme year, or over a longer period specified by you. If you do purchase Added Pension for more than 1 scheme year, the factors used in the calculation of your Added Pension are relevant to your age at the beginning of each scheme year. This will mean that the amount of pension your contributions buys you each year will reduce as you get older.
If you exercise the option to purchase Added Pension, your contributions will begin from the next available pay period.
Any Added Pension you have purchased will be added to your pension account at the end of each scheme year (31 March).
Contact the XPS Administration who will provide a quotation for you. Please specify if you are looking to buy a stated amount of additional pension (e.g. and extra £1000.00 per year) or whether you are interested in knowing what extra pension could be bought if you contributed a certain monetary amount (or percentage of pay).
Please note that the factors used to calculate your Added Pension are supplied by the Government Actuary's Department and are subject to change, often with very little notice. If the factors are changed in the future this may alter the amount of pension you are purchasing.
Yes you can. If you would like to stop paying your additional contributions, please contact XPS Administration. Your payments will then cease from the next pay period.
If you are a former member of FPS 1992 or FPS 2006, and had previously taken out an added years contract, any contributions that you had agreed to pay will continue to be deducted from your pay. The additional service that you had agreed to buy will remain linked to the scheme from which the contract originated (FPS 1992 or FPS 2006), and retain its final salary link.
As a member of FPS2015, it is possible to cancel your Added Years contract without the need to prove financial hardship. If you decide to do this, the amount of additional service awarded to you will be based on the contributions you have paid up to the point of termination.
If you do decide to cancel your Added Years contract you will not be able to restart it or take out a new contract. You would, however, be able to purchase Added Pension in the 2015 scheme.
Again, contact XPS Administration if you are thinking about cancelling an existing added years contract.