Prepared by the PFEW Research and Policy Support Team, 6th March 2015
This document is designed to answer Frequently Asked Questions (FAQs) about the Career-Average Revalued Earnings Police Pension Scheme 2015 (“CARE 2015 Scheme”). The Government set out the intention and overarching framework for this scheme in the Reform Design Framework of September 2012.
In keeping with other public sector pension changes, this is a Defined Benefits career average scheme, and replaces the previous Defined Benefits final salary schemes. The Government is not required to negotiate on this scheme: only to consult. The Police Federation of England and Wales has engaged in these consultations fully, to represent the interests of our members, and to maintain an up to date awareness of developments, so that we can be best placed to provide information as it becomes available from the Home Office.
The FAQs are aimed at existing members of the Police Pension Scheme (PPS) 1987 and the New Police Pension Scheme (NPPS) 2006. Many people will move across to the CARE 2015 Scheme between 1 April 2015 and 31 March 2022 and therefore have service in both schemes.
We cannot give members advice about their individual financial circumstances, including pensions. However, we believe that for members the new CARE 2015 Scheme will deliver a good package of benefits that is better than that provided by other public sector schemes. We believe that it is extremely unlikely that members will be able to match those benefits for the same cost by the use of private individual arrangements. Any officer thinking of opting out should carefully consider the fact that this would cause them to lose out on a number of valuable benefits.
We have worked with the Home Office to try to ensure the scheme is as fit for purpose as possible, and ready by the date they have been required to implement it, which is 1 April 2015. However, the Home Office have clearly experienced some difficulties in drafting the Regulations and Members’ Guide. We believe there may be some practical difficulties that arise in the early days of the scheme, including the fact that we feel forces may find it difficult to give detailed information. But this is NOT the same as the scheme not being a sound choice financially. If you have concerns regarding the information available or other detail please let us know at email@example.com
These FAQs are not exhaustive. We anticipate that we will need to supplement these with further information over the coming months. Please look on our website for updates.
Police Federation of England and Wales