16 August 2010
JBB CIRCULAR NO : 022/2010
To: ALL BRANCH BOARDS

Dear Colleague

CLOSURE OF THE POLICE PENSION AVC SCHEME

At the recent meeting of the Police Negotiating Board the Home Office confirmed that Ministers would go ahead with the previous Government’s proposal to close the Police Pensions Added Voluntary Contributions (AVC) Scheme to new members, increased subscriptions and transferred business from October 2010.

Officers in the PPS 1987 will have until the end of September to join the AVC Scheme. We understand the Home Office has recently written to all pensions administrators with a notice for officers to explain the closure of the AVC scheme.

The NPPS 2006 does not have a linked AVC Scheme.

The Stakeholder scheme provided by Standard Life is unaffected by these changes as under the Stakeholder arrangements contracts are made directly between the officer and Standard Life.

You may also be aware that the Home Office had proposed closing the added years scheme and replacing it with an added pension provision. Please note theseproposal to close the Police Pensions Added Voluntary Contributions (AVC) Scheme to new members, increased subscriptions and transferred business from October 2010.

Officers in the PPS 1987 will have until the end of September to join the AVC Scheme. We understand the Home Office has recently written to all pensions administrators with a notice for officers to explain the closure of the AVC scheme.

The NPPS 2006 does not have a linked AVC Scheme.

The Stakeholder scheme provided by Standard Life is unaffected by these changes as under the Stakeholder arrangements contracts are made directly between the officer and Standard Life.

You may also be aware that the Home Office had proposed closing the added years scheme and replacing it with an added pension provision. Please note these proposals are now on hold.

As with all pensions matters, we would recommend members seek independent financial advice before making any financial decisions.

Yours sincerely
IAN RENNIE
General Secretary