It is clear from the number of enquiries on this topic that a significant number of members with 30 years’ pensionable service under the Police Pensions Regulations 1987 are considering opting out of the Police Pension Scheme (“PPS”).
The Federation cannot give financial advice and is not recommending to members that they opt out of the PPS.
It is strongly recommended that any member who is considering opting out takes the following steps before s/he makes a decision to opt out:
- take independent financial advice dealing with his or her own financial circumstances, including life cover; and
- contact the force pension administrator to obtain details of the impact of opting out on his or her circumstances.
To assist with the second point, we have prepared a letter which we recommend that any member with 30 years’ pensionable service under the Police Pensions Regulations 1987, who is considering opting out of the Police Pension Scheme, sends to the force pension administrator. Members can add any further issues that may concern them. The letter should be sent and the response considered before making a final decision to opt out.
We have informed the Home Office that we are taking this step and suggested that they prepare advice for pension administrators to enable them to respond.
Sample Letter (simply copy, paste and edit)
To: [FORCE PENSION ADMINISTRATOR]
I am a serving officer in the [ADD NAME OF FORCE] and a member of the 1987 Police Pension Scheme.
I have 30 years’ pensionable service. or I will on [date] have 30 years’ pensionable service.*
I am considering opting out of the PPS. Before I make my decision whether or not to opt out, I need to understand the implications of doing so. Please therefore supply the following information:
- If I opt out will I still be able to take an immediate full pension on retirement so long as I give appropriate notice?
- If I opt out what benefits would be payable to my spouse and children** if I were to die?
- If I opt out what is the position in relation to indexation while I continue to serve? In particular will my pension be index linked while I continue to serve, with the accumulated increases being payable once the pension is in payment and from the age of 55?
- [add any other questions you have or delete as applicable]**
I would be grateful for your reply within 21 days.
* choose the appropriate sentence and delete the other
** replace “spouse” with civil partner if appropriate and/or delete children if not applicable
*** add anything else you want to ask about. If there is nothing else delete