The Police Pension Scheme has been designed and refined to meet the special needs of Police Officers. These include benefits such as early retirement, guaranteed levels of pension which are index linked and special provisions for those who suffer ill-health or injury and the protection of their families.
It provides a guaranteed level of security that cannot be matched elsewhere and consequently all officers should remain in, or opt to join, the Police Pension Scheme.
Officers who joined the service after 5th April 2006 can only join the New Police Pension Scheme (NPPS). Those who joined the service before this date will be in the old scheme unless they opted to transfer to the new scheme. Below is a table which explains the benefits and differences of each scheme.
How much do I pay?
Old Police Pension Scheme: 12.2% of your salary each month New Police Pension Scheme: 10.5% of your salary each month
What is the maximum pension that I can get?
Old Police Pension Scheme: 2/3rd final salary, with option to exchange part of the pension for a lump sumNew Police Pension Scheme: 1/2 final salary plus fixed lump sum of four times the pension, with option to exchange part or all of the lump sum for extra pension.
What is my final salary based on?
Old Police Pension Scheme: Highest pensionable pay in each of the last three years.New Police Pension Scheme: Earnings over the last ten years are taken into account.
How long do I need to serve to get the maximum pension?
Old Police Pension Scheme: 30 years.New Police Pension Scheme: 35 years.
What is the earliest age that I can get my pension?
Old Police Pension Scheme:
- After 30 years service – making the earliest age in effect 48.
- 50 with 25 years service.
- 55 with less than 25 years service.
- 60 if leaving the police service before compulsary retirement age with less than 25 years service.
New Police Pension Scheme:
- 65 if leaving the police service before age 55 or if opting out of the scheme.
Does my pension increase each year for inflation?
Old Police Pension Scheme: Yes – from age 55, or earlier if retiring on ill-health grounds.
New Police Pension Scheme: Yes – from age 55, or earlier if retiring on ill-health grounds.
How is my pension accumulated?
Old Police Pension Scheme: Dual accrual: 1/60th of final salary for each of the first 20 years service and 2/60ths for each of the final 10 years service. New Police Pension Scheme: Uniform accrual: 1/70th of final salary for each year of service.
What are the arrangements for ill-health retirement?
Old Police Pension Scheme: Pension payable immediately. Officers with five or more years service receive enhanced pensions.New Police Pension Scheme: Pension and lump sum payable immediately. Enhanced
pensions are only payable to officers who are incapable of any regular employment; others receive unenhanced pension.
Can my partner get a pension when I die?
Old Police Pension Scheme: Only if he/she is married to you or is your civil partner. Pension stops if the partner remarries or cohabits.New Police Pension Scheme: Pensions can also be paid to unmarried partners (cohabiting) who are not civil partners if appropriate conditions are satisfied. Pension is payable for life.
Are pensions payable to children?
Old Police Pension Scheme: Only to your legitimate or adopted children and not to children of a marriage which took place after retirement, or to children adopted in retirement.New Police Pension Scheme: To a natural child, stepchild or adopted child, or any other child who was dependant on you when you died (even if not related to you).
Are partner and children’s pensions increased for the first 13 weeks?
Old Police Pension Scheme: YesNew Police Pension Scheme: No
What is the lump sum death grant if I die in service (providing you have not opted out)?
Old Police Pension Scheme: 2 times payNew Police Pension Scheme: 3 times pay
Can I pay in more to increase my pension?
New Police Pension Scheme: Yes – you can buy “added years” subject to limits, although there is no AVC scheme linked to the new scheme.
- You automatically join the new scheme if you are appointed as a police officer on or after 6th April 2006. You can opt out if you wish but you will only be able to opt back in once. If you opt out a second time you cannot rejoin.
- From 6th April 2006 any police officer can pay into another pension scheme (such as a personal pension plan) as well as the police scheme.
- Due to the Age Discrimination Act the compulsory retirement age for constables and sergeants is now 60. However officers who are on the old scheme can still retire at 55 with no detriment.