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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Contents
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.
FAQs
If you were ‘in scope’ for the Matthews remedy, you should have received an Expression of Interest form from your Fire and Rescue Authority (FRA), which is a non-binding request for information about your options.
When you have returned your form, LPPA will calculate your pension benefits for eligible service. An options pack will be sent to you, which includes details of your benefits, costs and payment options.
You then have six months to return this completed form to your FRA. If you choose to buy back your pensionable service, you would also need to pay the relevant contributions.
- Active and deferred members can make periodic payments over 10 or 20 years depending on the period of service they are buying (or until retirement if sooner). Or they can pay by lump sum.
- Retired members must pay by lump sum and pension arrears are only paid once contributions are settled. If you choose to ‘commute’ your pension for a one-off lump sum, you can also choose to pay the contributions from this and receive interest on the arrears of pension.
- Interest is charged on all contributions, and tax relief is also applied.
If you believe you should be in scope for Matthews Remedy and haven’t received an expression of interest form, please contact your FRA.
For more information on eligibility, please visit the Firefighters’ Pension Scheme website
LPPA will contact you if any further information is required. Once we have reviewed your claim form and all the necessary information, we will process your application and write to you to confirm your benefit entitlement.
Calculating your benefits is a complex process and every situation is different. We are unable to confirm an exact payment date, but we will write to you as soon as we have information to pass on.
Yes, if you are already receiving your pension, it will continue to be paid as normal. Any interest due on the pension or lump sum arrears will be paid up to the date the payments are made.
We do understand how important it is to finalise your pension benefits as soon as possible and we are treating the payment process as a priority.
If there are any delays, all Matthews remedy payments will be backdated and any interest due on the pension or lump sum arrears will be paid up to the date the payments are made.