Firefighters are entitled to increase their pensions if they earn additional allowances for working extended hours or additional duties, the High Court has ruled.
In a ruling handed down on Friday (March 29), the court found that allowances for training and additional shift arrangements were pensionable.
This follows cases brought by four claimants concerning three pension schemes in Wales - the Firefighters’ Pension Scheme 1992, the New Firefighters’ Pension Scheme 2007, and the Firefighters’ Pension Scheme 2015.
According to the Fire Brigades Union, firefighters are regularly paid an additional allowance for working in the Fire Authority’s training school, or for accepting shift systems up to 42 hours longer than the standard contracted hours.
The defendant, the Mid and West Wales Fire and Rescue Authority, argued that the arrangements weren’t pensionable, because they weren’t permanent and could be ceased at any time.
However, the court ruled that the payments were regular, even if they could be revoked in the future, and thus qualify for pension benefits.
The authority has been ordered to pay pension contributions retrospectively and will now consider whether to appeal this decision, the union stated.
According to Matt Wrack, FBU’s general secretary, this is a major victory for firefighters.
He said: "When a firefighter regularly carries out additional paid work, that pay should be factored into their pension, regardless of whether it is part of their core role.
"The government must act now to ensure that firefighters across the country have these payments included in the calculation of their pensions."
Stephen Scholefield, partner at law firm Pinsent Masons, said, assuming the decision isn’t overturned, "the affected schemes will need to pay higher pensions to some firefighters, which will increase the cost of those scheme to the taxpayer".
He added: "The main lesson from this is that all pension schemes, whether public or private sector, and whether defined benefit or money purchase, need to ensure that their rules reflect current pay structures and that benefits and contributions are calculated accordingly.
"All too often new types of pay are introduced without it being made clear in the scheme rules whether these are pensionable. A more joined up approach between schemes, employers and unions may prevent similar problems arising in future."
maria.espadinha@ft.com
