Business Services Organisation
Changes to Employee Pension Contributions Effective from 01 May 2026
Background
Public Service Pension Schemes undergo four-yearly scheme valuations, which are undertaken by the Government Actuary’s Department (GAD). The 2020 Firefighters’ Pension Scheme (Northern Ireland) valuation looked at the cost of benefits accruing over the implementation period from 1 April 2024 to 31 March 2027, and the results were used to set the employer contribution rate which was increased from 31.1% to 41.3% on 1 April 2024.
Member Contribution Yield
Employer rates are calculated based on an assumption that a certain level of contributions will be made by scheme members over a certain period. The target yield was set at 13.2% of pensionable pay. GAD has reviewed the contribution rate structure and have confirmed that the current yield is 13%, which is 0.2% under the target.
HM Treasury and the Department of Finance has instructed the Department of Health that action needs to be taken to attain the target of 13.2%.
Between 4 December 2024 and 14 February 2025, a consultation was held to review the existing contribution rate structure and take steps to ensure the member yield can be achieved.
The consultation focused on three key areas:
- Banding Structure – Whether the current four-tier model remains appropriate for the workforce.
- Determination of Pay for Contribution Thresholds – The current approach uses Whole-Time Equivalent (WTE) pay. Views were sought on whether this is fair, particularly for part-time and retained firefighters.
- Futureproofing – Whether contribution bands should increase annually to keep pace with pay growth.
Outcome of Consultation
On 2 February 2026, the outcome was published confirming that, with effect from 1 May 2026, the contribution structure will be amended as follows:
- An additional band will be introduced, increasing the bands from four to five.
- Contributions will be based on Actual Pay rather than WTE pay.
- From April 2027 the bandings will be increased each April in line by CPI to allow for futureproofing.
New Contribution Banding Structure (from 1 May 2026)
| Tier | Actual Pay | Rate |
| 1 | £0 to £36,130.99 | 11.71% |
| 2 | £36,131 to £45,407.99 | 13.21% |
| 3 | £45,408 to £66,908.99 | 14..71% |
| 4 | £66,909 to £190,691.99 | 16.21% |
| 5 | £190,692 and above | 17.71% |
What This Means for You
- Whole-Time Equivalent pay to Actual Pay: From 1 May 2026, your contribution rate will be determined based on the actual pensionable pay received rather than the WTE pay. This will be a change for part-time and retained/on call firefighters, whose banding will now be based on their actual pay instead of the WTE for their role.
- Annual Assessment: Northern Ireland Fire and Rescue Service (NIFRS) will determine the initial contribution rate at the start of each scheme year (1 April). For new joiners this will be assessed on date of joining.
- Pay changes during the year: NIFRS will adjust contribution bands where a change in pensionable pay is permanent or expected to continue for the foreseeable future.
- Multiple employments: If you have more than one firefighter job, each job is treated separately. A distinct contribution rate is set for each employment based on the actual pay for that specific role.
To determine the appropriate banding, in April, a member’s pensionable pay in that month will be multiplied by 12 and compared to the bandings in the table above.