Firefighters' pension ill health retirement calculator: lower and higher tier
Last updated · By Mustafa Bilgic · Rules from the Firefighters' Pension Scheme 2015 regulations and the Local Government Association's firefighters' pensions guidance
This page explains who qualifies for each tier, how the higher tier is worked out, what happens to 1992 and 2006 scheme service, the lump sum, reviews and appeals. The calculator estimates both tiers from your dates and your annual benefit statement, including a 1992 or 2006 scheme amount and the lump sum.
Lower tier and higher tier
Your fire and rescue authority, as scheme manager, decides on the written opinion of an IQMP, a doctor with a qualification in occupational medicine. Normal pension age in the 2015 scheme is 60, and regular employment means work of at least 30 hours a week on average over at least 12 months in a row.
| Tier | Medical opinion (IQMP) | Qualifying service | What you get |
|---|---|---|---|
| Lower tier | Incapable of performing any of the duties of the role you were last employed in, until normal pension age 60 | At least 3 months | The pension you have built up, paid now with no reduction for early payment |
| Higher tier | Also incapable of undertaking regular employment (at least 30 hours a week on average) until normal pension age | At least 5 years | The lower tier pension plus 2% of it for each year from leaving to age 60 |
Firefighters' ill health pension calculator
2015 scheme lower or higher tier
Only the 2015 scheme.
Who qualifies
Regulation 65 gives an active member under normal pension age an immediate lower tier ill health pension if four conditions are met: in the IQMP's opinion you are incapable of performing any of the duties of the role you were last employed in, because of incapacity of mind or body that will continue until normal pension age; you have three months of qualifying service; because of that incapacity you have been dismissed or retired from scheme employment; and the scheme manager has decided you are entitled.
The higher tier is paid in addition if, in the IQMP's opinion, you are also incapable of undertaking regular employment until normal pension age, you have at least five years of qualifying service, and the scheme manager decides you are entitled. Qualifying service includes pensionable service in the 1992 or 2006 scheme if you moved across with continuous service. The pension is paid from the day after your employment ends.
How the higher tier is worked out
The lower tier pension is worked out in the same way as a normal retirement pension, but without the reduction for early payment. In the 2015 scheme you build up 1/59.7 of your pensionable pay each year, and the pension already built up is revalued each year. Regulation 66 then sets the higher tier:
| Part of the calculation | What it means |
|---|---|
| Adjusted lower tier pension | The lower tier pension without any added pension and before any part is exchanged for a lump sum, plus any 1992 or 2006 scheme equivalent amount |
| Assumed period of pensionable service | From the day after your pensionable service ends to the day before your 60th birthday, in years |
| Higher tier pension a year | Adjusted lower tier pension x assumed period x 2% |
| LGA example | £10,000 built up and 20 years to age 60: 2% x £10,000 x 20 = £4,000, so £14,000 a year in total |
Added pension you bought is paid as part of the lower tier but is left out of the higher tier. Exchanging part of the pension for a lump sum does not reduce the higher tier, because the 2% is worked out on the pension before commutation. The period to age 60 is counted in years and days; the calculator treats the days as a fraction of 365.
If you have 1992 or 2006 scheme service
Firefighters who moved to the 2015 scheme from the 1992 or 2006 scheme with continuous service, and who have not reached the normal pension age of that older scheme, do not get a separate ill health award from it. Instead, the 2015 scheme pays an amount equal to the lower tier ill health pension the older scheme would have paid. That equivalent amount is added to the lower tier and is included in the higher tier calculation, so the 2% applies to it as well. Any lump sum from that part is worked out under the older scheme's commutation rules, not at £12 for £1. Enter the amount your pension administrator gives you.
The age discrimination remedy covers service from 1 April 2015 to 31 March 2022. If you were in pensionable service on or before 31 March 2012, had pensionable service in the remedy period and have no gap in service of five years or more, you were rolled back into your legacy scheme for that period and will choose between legacy and 2015 scheme benefits for it. Your administrator's figures should reflect this.
Lump sum
Before the first payment you can exchange part of the lower tier pension for a tax free lump sum: for every £1 of yearly pension you give up, you get £12. You can give up at most 25% of the pension, or less if exchanging more would lead to a scheme chargeable payment under the Finance Act 2004. The higher tier pension cannot be exchanged. In the LGA example, a pension of £16,000 a year with 25% (£4,000) exchanged gives a lump sum of £48,000 and a pension of £12,000 a year.
Reviews
If you have been receiving an ill health pension for less than 10 years and are under deferred pension age (your State Pension age, or 65 if that is later), the scheme manager must consider, at intervals it thinks appropriate, whether you have become capable of performing a duty of your old role and of undertaking regular employment.
- If you become capable of regular employment, the higher tier stops straight away, but the lower tier carries on.
- If you become capable of the duties of your old role and your employer offers you that job, the lower tier stops whether you accept or decline. If you decline, your pension becomes a deferred pension.
- If you go back into pensionable service, the pension built up for the lower tier is credited back to your account.
Medical opinions and appeals
The IQMP must certify that they have not advised on or been involved in your case before. Within 14 days of its decision, the scheme manager must tell you in writing and give you a copy of the IQMP's opinion. If you have new medical evidence, you can present it within 28 days and, if you and the scheme manager agree, the IQMP reconsiders. You can also appeal on an issue of a medical nature to a board of medical referees by written notice within 28 days of receiving the documents, or a longer period if the scheme manager allows.
If you have already left
A deferred member of the 2015 scheme can ask for the pension to be paid early without reduction if the IQMP's opinion is that they are incapable of undertaking regular employment until deferred pension age. Payment starts from the date the incapacity began or, if that cannot be established, the date of the request.
Ill health pension or injury award
An ill health pension comes from the pension scheme and is based on your incapacity for work. If you were injured on duty, you may also qualify for an award under the Firefighters' Compensation Scheme, which is separate and covers a qualifying injury or death in service. For a civil claim against an employer, see our guide to claiming against your employer.
Scotland, Wales and Northern Ireland
The Firefighters' Pension Scheme (Scotland) Regulations 2015, the Firefighters' Pension Scheme (Wales) Regulations 2015 and the Firefighters' Pension Scheme Regulations (Northern Ireland) 2015 have the same lower and higher tier tests, the same 2% calculation and the same £12 lump sum rate. The Public Service Pensions Act 2013 sets normal pension age for firefighters at 60, and the calculator uses 60; in Northern Ireland, check your normal pension age with your administrator.
Worked example
The LGA's example takes a firefighter with a 2015 scheme pension of £10,000 a year and 20 years between ill health retirement and age 60. The lower tier is £10,000 a year. The higher tier adds 2% x £10,000 x 20 = £4,000 a year, so the total is £14,000 a year. Someone born on 1 October 1986 whose service ends on 30 September 2026 has exactly 20 years to age 60, and the calculator gives the same figures.
For a firefighter who also has a 1992 scheme amount of £12,000 a year and a 2015 pension of £3,500 a year, born on 15 March 1980 and leaving on 30 September 2026, the period to age 60 is 13 years and 166 days. The higher tier is 2% x £15,500 x 13.45 years, about £4,171 a year, on top of the lower tier of £15,500.
Sources and methodology
The calculator applies regulations 65, 66 and 71 with dates counted in whole years and days, the days as a fraction of 365, and normal pension age 60. It reproduces the LGA's higher tier and lump sum examples. It does not work out 1992 or 2006 scheme amounts, part-time service or the remedy choice, and it assumes the pension built up on your statement has been revalued to your leaving date.
- Firefighters' Pension Scheme (England) Regulations 2014, regulations 3, 4, 36, 57 and 65 to 71A, 152 to 154 and Schedule 2, paragraphs 22 and 24, on legislation.gov.uk.
- Firefighters' Pension Scheme (Scotland) Regulations 2015, regulations 65, 66 and 71; Firefighters' Pension Scheme (Wales) Regulations 2015, regulations 74, 75 and 80; Firefighters' Pension Scheme Regulations (Northern Ireland) 2015, regulations 73, 74 and 79, on legislation.gov.uk.
- Ill health, How much will you get? and Age discrimination remedy, Firefighters' Pensions member website, Local Government Association.
- Public Service Pensions Act 2013, section 10, on legislation.gov.uk.
Frequently asked questions
What is the difference between lower tier and higher tier ill health retirement for firefighters?
Lower tier is for firefighters who cannot perform any of the duties of their role until age 60 and have at least three months of qualifying service. Higher tier is for those who are also incapable of any regular employment, meaning at least 30 hours a week on average, and have at least five years of qualifying service. It adds an extra pension on top of the lower tier.
How is the firefighters' higher tier ill health pension calculated?
It is 2% of your lower tier pension, without added pension, for each year from the day after you leave to the day before your 60th birthday. With £10,000 built up and 20 years to go, that is 2% x £10,000 x 20 = £4,000 a year, making £14,000 a year in total.
Is a firefighter's ill health pension reduced for early payment?
No. The lower tier pension is the pension you have built up, worked out as a normal pension but without the reduction for early payment.
Who decides if I qualify for ill health retirement?
Your fire and rescue authority, as scheme manager, decides after getting the written opinion of an independent qualified medical practitioner (IQMP) on the medical questions. You can present new evidence within 28 days, and appeal on medical issues to a board of medical referees.
Can I take a lump sum with an ill health pension?
Yes. You can exchange up to 25% of your 2015 scheme lower tier pension at £12 of lump sum for every £1 of yearly pension given up. The higher tier pension cannot be exchanged.
What happens to my 1992 or 2006 scheme pension if I retire on ill health grounds?
If you moved to the 2015 scheme with continuous service and have not reached the older scheme's normal pension age, the 2015 scheme pays an amount equal to that scheme's lower tier ill health pension, and the higher tier 2% is worked out on it as well.