Additional pension contributions

If, as an active member of FPS 2015 you wish to increase your retirement pension and death benefits, you can buy extra pension in the form of periodical or lump sum payments.

There are, however, limits on the amount of extra pension that can be bought. If you’re interested and want to find out more, read on.

In order to increase your Firefighters’ Pension Scheme 2015 (FPS 2015) pension on retirement and any survivor benefits that may become payable, you can pay Added Pension Contributions to buy added pension.

How much Added Pension you can buy?

You can pay added contributions to buy up to £8,032 of added pension (2023/24 limits) in the FPS 2015. This is payable every year for life, on top of your normal FPS 2015 benefits. The limit will be increased each April in line with the Pensions (Increase) Act 1971.

You may choose to pay monthly by periodical contributions.

If you have been employed as a firefighter within the last 12 months you could make a one-off payment into the scheme by lump sum.

Paying by periodical payments

An election to pay added pension payments by periodical payments may only be made at least two years before your normal pension age (60).

If you choose to pay by periodical payments, they will be deducted from your pensionable pay on the first pay period after the date on which the Fire & Rescue Authority (FRA) receives the notice of your election in addition to your normal pension contributions to the scheme.

They will stop at the end of the scheme year (i.e. 31 March), or on the date specified in your election, whichever is earlier. Your periodical payments must stop if you are no longer an active member of the scheme, or if it appears to the FRA that you will exceed the overall limit of added pension (£8,032 for 2023/24).

An amount of added pension will be credited to your “added pension account” for that scheme year. The amount credited is an amount worked out in accordance with guidance issued by the Government Actuary’s Department (GAD) and is "indexed" each year to keep pace with inflation. If you wanted to continue your periodical payments into a further scheme year, the amounts would need to be re-calculated taking into account the factors that would apply for that scheme year.

If you wish to stop making periodical payments, you will need to give written notice of your decision. The added pension contributions would stop from the next appropriate pay period after the date on which the authority receives the notice of your election to cease them.

Paying by lump sum

If you are eligible to make payment by lump sum you must state the amount you wish to pay. This must not be less than any minimum amount determined by the FRA. You should ask your FRA for their policy on this.

Once you have chosen to buy the Added Pension by lump sum, you must pay the amount due within 3 months. If you do not pay it within the 3 months, your election is void and you will need to ask for a new quotation.

Following receipt of lump sum payment, an amount of added pension will be credited to your added pension account for the relevant scheme year. The amount credited is calculated in accordance with guidance issued by GAD. Added pension is "indexed" each year to keep pace with inflation.

Example Added Pension calculations:

A 35-year-old Firefighter earning £32,244 per annum:

Option	Payment Method	Amount to be paid	Amount of Pension Purchased per annum
1. Buy £1,000 of annual pension	Lump sum	£12,767.30	£1,000.00
1. Buy £1,000 of annual pension	Monthly	£1,041.04	£1,000.00
2. Pay £1,000 lump sum	Lump sum	£1,000.00	£78.33
3. 5% per month	Monthly	£134.35	£129.05
4. Pay £100 per month	Monthly	£100.00	£96.06

A 45-year-old Firefighter earning £32,244 per annum:

Option	Payment Method	Amount to be paid	Amount of Pension Purchased per annum
1. Buy £1,000 of annual pension	Lump sum	£15,642.00	£1,000.00
1. Buy £1,000 of annual pension	Monthly	£1,275.44	£1,000.00
2. Pay £1,000 lump sum	Lump sum	£1,000.00	£63.93
3. 5% per month	Monthly	£134.35	£105.34
4. Pay £100 per month	Monthly	£100.00	£78.40

A 55-year-old Firefighter earning £32,244 per annum:

Option	Payment Method	Amount to be paid	Amount of Pension Purchased per annum
1. Buy £1,000 of annual pension	Lump sum	£18,986.40	£1,000.00
1. Buy £1,000 of annual pension	Monthly	£1,548.14	£1,000.00
2. Pay £1,000 lump sum	Lump sum	£1,000.00	£52.67
3. 5% per month	Monthly	£134.35	£86.78
4. Pay £100 per month	Monthly	£100.00	£64.59

Calculations are based on monthly payments being paid each month for 12 months of the scheme year (April to March).
Contribution amounts shown are before tax relief is applied.
Amount of pension shown is assuming you retire at age 60 from active service. Actuarial reductions will apply to the amount of pension if you retire before age 60 or before your state pension age if you leave before being able to retire.

Further information and how to apply

If you are interested in purchasing Added Pension and would like a quotation, please complete the form on page 3 of the factsheet below and return it to your pensions administrator at the address overleaf.

More information on the pension scheme, is available from:

wypf.org.uk, or
By phone on 01274 434999
By email at pensions@wypf.org.uk

Purchasing added pension factsheet and application form.