Matthews case update - second options exercise

This page includes the latest information about the second options exercise of the Matthews case.

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Background

The ‘Second Options Exercise’ was agreed as part of the Memorandum of Understanding (MoU) between The Government, representative bodies and Fire and Rescue Authorities in March 2022. It provides eligible retained (part-time) firefighters with the opportunity to retrospectively buy pensionable service in the Firefighters’ Pension Scheme (FPS).

The original legal settlement, under the Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000, only allowed certain retained firefighters – those in service between 1 July 2000 and 5 April 2006 – to become members of the Firefighters’ pension scheme (FPS). 

Eligible firefighters were asked whether they wanted to join the scheme in an options exercise, which took place between 2014 and 2015. Firefighters had to confirm their decision by 30 September 2015. This is now referred to as the ‘first options exercise’.

Latest development

Following the O’Brien v Ministry of Justice case in relation to fee paid judges, the courts ruled that this pension remedy could apply to service before the Part Time Workers directive was implemented on 7 April 2000. As a binding judgement, the UK Government extended this right to retained firefighters, leading to a ‘second options exercise’.

The legislation to implement this is within ‘The Firefighters’ Pension Scheme (England) (Amendment) Order 2023’ and will come into effect on 1 October 2023. 

What does this mean?

The second options exercise, effective from 1 October 2023, allows eligible retained firefighters to buy pensionable service as a special member of the FPS 2006. This will be backdated to the start of their employment with their fire and rescue service (not just from July 2000).

For further information about the second options exercise and what will happen next, please visit the Firefighters’ Pension Scheme member website here, or contact your fire and rescue authority.

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