Nearly 9,000 firefighters will receive £3,750 from the government to compensate for anxiety and stress caused by a “government pensions debacle”.
In December 2018, the Fire Brigades Union successfully argued that changes to firefighters’ pension arrangements were discriminatory against younger members of the final salary schemes, in what became known as the Sargeant ruling.
The 2015 changes allowed older members to stay in the existing pension scheme, while younger members were to transfer to a new scheme.
The FBU initiated more than 6,000 employment tribunal claims alleging that the changes amounted to unlawful age discrimination.
Under the new scheme, firefighters would not be able to retire before reaching the age of 60.
A coalition government review found that in the worst-case scenario, 92 per cent of active firefighters would not be able to maintain their required level of fitness until 60 years of age.
If members chose to retire early, at the former pension age of 55, firefighters in England would see their pension would be reduced by 21.8 per cent, the FBU said.
The ruling moved younger members back into their previous pension scheme arrangements.
On October 20, it was announced that almost 9,000 firefighters would get £3,750 in compensation, while claimants with “additional reasons for being aggrieved” will receive £7,250 in total, the FBU said.
Pensions are in the process of being adjusted, with further legal disputes under way, but this compensation is separate from these pensions.
“Today’s agreement on starting the process for making those payments to our members underlines the amount of distress our members have been under,” FBU general secretary Matt Wrack said.
“Some had significant uncertainty with regards to their financial futures. This is a significant step on the road to putting the situation with regards to firefighters’ pensions right, but there is still further to go. This is a mess of the government’s making.”
The government has been approached for comment.
Alex Janiaud is deputy editor at FTAdviser's sister publication Pensions Expert
