Re-employment after retiring question

[brasshat]

I am aware that if somebody retires from the Fire Service and is then re-employed in a different capacity, they may have tax repercussions to their pension and lump sum. However I read this as only being the case if you retire before the age of 55. Can anyone confirm my beliefs?

I am due to retire in a year or so after 30 years service. I will be almost 58 years old. If I accept a job with the same fire service e.g. in a green book roll, would I be liable to tax penalties? Also would I require any "break in service"?

Note: My total income (pension and salary) would not go into the £40,000 tax bracket.

I know I should be asking HR or wages dept, but they don't seem very up with tax/pension regs.

[cm.williams]

its not a tax implication but abatement - deduction of pension from your salary, that you need to consider.
If you are employed by the fire service you worked for or any other fire service, (sometimes including the umbrella organisation that runs the fire service ie local authority depending on type of fire authority) a change in rules about 5 years ago brought this in.

I am a bit behind the times now but with re-employment after retirement you could not earn more money (including your pension payment) than before retirement.

[art]

I thought the abatement rules didn't only apply to the fire service,but to any part of the civil service.
Can anyone shed a light on it?

[art]

I got this from my brigades pension authority :
Effects of Further Employment

Generally, further employment after retiring will not affect your pension. However, regardless of whether
or not you actually re-enter the Pension Scheme, if you commence employment with an organisation whose employees would normally be admitted to the LGPS, your pension may be affected.

You must inform us, in writing and within seven days, in order that
we may assess whether the new employment will affect your pension.

You may wish to seek our advice before taking up such employment.

[Stressed]

I thought the abatement rules didn't only apply to the fire service,but to any part of the civil service.
Can anyone shed a light on it?

Abatement comes into play if you retire and get re engaged doing the same job. Dobson retired as chief in london and the got re engaged as chief. He lied to his FF and said he had returned on a lower wage to save the fire authority money. Not true, he took a lower wage because he was forced to by the abatement rules. Your pension and re engagement salary cannot add up to more than you salary before you retired. He jumped ship and got re engaged to beat the new tax implication on higher earners lump sums.

[cm.williams]

if you commence employment with an organisation whose employees would normally be admitted to the LGPS

This applies to the Fire Authorities that are under the County Council, in the case of London which is separate to the Borough Councils it does not apply. Other metropolitan brigades may or may not ...you need to check

[Benito M]

I am aware that if somebody retires from the Fire Service and is then re-employed in a different capacity, they may have tax repercussions to their pension and lump sum. However I read this as only being the case if you retire before the age of 55. Can anyone confirm my beliefs?

I am due to retire in a year or so after 30 years service. I will be almost 58 years old. If I accept a job with the same fire service e.g. in a green book roll, would I be liable to tax penalties? Also would I require any "break in service"?

Note: My total income (pension and salary) would not go into the £40,000 tax bracket.

I know I should be asking HR or wages dept, but they don't seem very up with tax/pension regs.

Hi brasshat
The rules on pension abatement are complex and keep getting changed under pension legislation (not just under single scheme rules). They have been extended so that abatement can be applied much wider across the public sector than they used to be.
There is definitely a requirement for a break in service (that used to be 1 month) but please check that out as there was talk of extending it and it has tax implications on your commuted lump sum.
Also abatement meant you basically couldn't earn through your new wages and pension in payment more than your previous salary and if you did you pension was reduced.
You shouldn't be asking HR or wages department but the pension administrator (which they are legally required to have for the administration of the scheme). If they say they haven't got one then a quick phone call to the pension ombudsman will sort that out.
So nothing to do with tax brackets as I earn above £40k with my new private sector employment and my public sector pension so I pay the recognised rates of tax on my pay and pension up to the 40% tax band and then over that the next band (as anyone does).
As for abatement following retirement at certain ages I am not 100% sure of but again it is going to be about re-employment in another public sector subject to abatement rules.

[brasshat]

Thanks for the info guys.

[art]

Am i right in thinking retired police officers are not subject to abatement ?

[Stressed]

Am i right in thinking retired police officers are not subject to abatement ?

Ther are now. It just depends what job they do.