Police and Fire Service Pension Schemes (Hansard, 31 March 1998)

§ Lord Williams of Mostyn

Consultation documents on the two pension schemes have been published today. We have placed copies in the Library. Copies are also being sent to police forces and fire services, police and fire authorities, the police staff associations and the fire service unions in England and Wales, Scotland and Northern Ireland. They have been invited to comment by 31 July 1998.

The current police and fire service pension schemes were established to reflect the special nature of police and firefighting work. Of course, we continue to take this fully into account. But these schemes are very expensive, both for police officers, firefighters and the relevant authorities, and are not necessarily in tune with current circumstances.

Authorities, in particular, are faced with large annual increases to pension costs, consuming an increasingly large proportion of their total budget and thus eating into the resources available to run the services themselves.

The consultation documents have two main objectives:

to stimulate debate for modernised pension schemes for future police officers and firefighters which bring pensions more in line with other public service pensions and make them more affordable;

to reform aspects of the current arrangements for retirement on medical grounds.

In considering options for a new pension scheme, the unique nature of police and firefighting work will be recognised. There is no intention of reducing the pension benefits which serving or retired police officers or firefighters are entitled to as members of their 20WA pension schemes. Any changes to such benefits would apply only to new entrants to the police or fire service.

The level of early retirements on medical grounds in the police and fire service is unacceptably high and in many cases cannot be justified. Wide variations across the country between forces and brigades support this argument. Good management of ill-health retirement is crucial. The consultation documents suggest options for change which depend on better practice and, in the case of the police, on amending current legislation. We have separately announced changes in regulations and practice to deal with those situations where officers seek to retire early before the disciplinary process is complete.

The Government firmly believe that modernisation of the two schemes is essential, particularly as any changes to the pension benefits of new entrants will take many years to come into effect.