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Police Pension

The Polce Pension has always been known to be one of the best around. You will often hear the response "Oh you're in the police, good pension!". Well unfortunately it is not as good as it used to be however it remains to be one of the only final salary pensions out there!

There are now two pension schemes running, which one officers belong to depends on their date of joining. Everyone joining the police and opting into the pension scheme from now on will join the new Police Pension Scheme (NPPS), the NPPS was brought in for officers joining after the 6th April 2006

Background

Towards the end of the 1990s, it became increasingly apparent that the Police Pension Scheme as set out in the 1987 regulations (PPS) might no longer meet the needs of a modern police service. This, combined with the rising cost of police pensions, led to a search for new pensions options. Against this background the Government confirmed its commitment, in both the Police Reform White Paper of December 2001 and the National Policing Plan of November 2002, to consider options for modernising police pensions and to make them more flexible and affordable for future entrants. The Police Pensions Regulations 2006 are the result of these efforts.

The Police Pensions Scheme 2006 has not replaced the previous Police Pensions Scheme which was introduced in 1987 as everyoe who joined prior to 2006 will remain on the 1987 scehem unless they ask to switch to the new pension.

I have listed the main benefits of both the PPS and the NPPS to help people compare the two and make their own mind up about which one was the better deal!

The main features of the NPPS are:

• Officer contributes 9.5% of their salary each month

• Maximum pension of 1/2 final salaryplus a fixed lump sum of 4 times the pension, with the option to give up part or all of the lump sum for an additional annual pension.

• Maximum pension after 35 years

• Single accural rate of 1/70 of final salary for each year of service - no accelerated accural rate after 20 years

• pensions for life for partners

• Pensions can be paid to any partner, even if you are not married or in a civil partnership as long as certain conditions are met

The main features of the PPS are:

• Officer contributes 11% of their salary each month

• Maximum pension of 2/3 final salary with option to commute 25% of pension for lump sum

• Maximum pension after 30 years

• pensions can be paid to dependants if appropriate conditions are satisfied.

There is at present a scheme called the 30+ Scheme. This allows officers to stay on and continue their service after their 30 years are up

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