Retirement, Reengagement and Abatement - Fire Service policy - Abatement

On 6 April 2006, the Government relaxed the rules on pension commutation (converting some pension to a lump sum payment) whilst continuing in employment. As a result, subject to any future changes either in the pension’s schemes or by the Government, CFRS has elected to exercise the discretion and will enable employees in any of the relevant Firefighters Pension Schemes to retire from the scheme, access their lump sum and pension and be re-employed, subject to the abatement rule. 

Abatement of pension is the withdrawal or reduction in pension where the pensioner is re-employed anywhere in local government. It applies if an employee’s combined pension and new salary in their new post, exceeds their gross salary when they retired. The purpose of abatement is to protect public funds. 

Under the Abatement rules, Firefighters who are re-employed following retirement cannot receive annual remuneration plus annual pension in excess of the remuneration received immediately prior to retirement. Therefore, their pension in payment will be reduced proportionately so that the maximum level of previous salary (plus inflation) is not exceeded.

There is no age limit on abatement, and this continues for the full period of re-employment by an FRA or Local Authority in any capacity. The full pension will be reinstated when the relevant employment ends. 

Abatement only applies to the Firefighters Pension Scheme 1992, Firefighters Pension Scheme 2006 and the Firefighters Compensation Scheme 2006. It does not apply to the Firefighters Pension scheme 2015. 

A member of the relevant pension scheme is required to declare to the Council (or any other relevant employer) that they are in receipt of a Fire Service pension. Overpayments will be recovered so it is in the pensioner’s interests to declare employment as soon as possible. 

Individuals who may be affected by the Abatement rules should familiarise themselves with the potential implications of abating their pension. This may include liaising with the Inland Revenue and Local Pension Partnership Administration. It is the individuals’ responsibility to take advice, and understand the implications of the abatement rules from LPPA or an appropriate pension adviser.