Revamping the Pension Scheme for Scottish Firefighters: What You Need to Know

The Scottish Government is making pivotal changes to the Firefighters' Pension Scheme through the Firefighters' Pension Scheme (Amendment) (Scotland) Regulations 2025. These amendments are designed to ensure that the scheme's contribution rates align with financial targets, and they will take effect from 1 July 2025.

Why the Change?

The Government Actuary’s Department found that the existing contribution rates weren't meeting the required yield of 13.2% from members' pensionable pay, falling short by 0.23%. To address this, the new regulations will adjust the employee contribution rate structure to meet the target.

What’s New?

1. Tiered Contribution Rates: The updated rates will continue to follow a tiered structure, but with adjusted pay thresholds to ensure the target yield is met.

2. Actual Pensionable Pay: Contribution rates will now be calculated based on actual pensionable pay rather than whole-time equivalent pensionable pay.

3. Categorization of Bands:

   • Band 1: Full-time Trainee and Development Firefighters
   • Band 2: Full-time Competent Firefighters to Watch Managers
   • Band 3: Full-time Group and Area Managers

These bands will be updated annually in line with pay awards.

Consultation and Collaboration

The changes were devised in collaboration with the Scottish Firefighters’ Scheme Advisory Board, which represents both employers and employees. A public consultation period was held, and the feedback led to the adoption of these amendments.

Impact Assessments

• Equalities Impact Assessment: This will be available on the Scottish Public Pension Agencies website.
• Child Rights and Wellbeing Impact Assessment: The assessment concluded no impact on children’s rights or wellbeing, aligning with the UN Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024.

Financial Implications

The Scottish Government states that a Business and Regulatory Impact Assessment isn't necessary as the changes don't significantly affect government finances, local government, or businesses.

For more detailed information, including the consultation report and impact assessments, you can visit the Scottish Public Pensions Agency’s website.