Don’t worry we won’t send you spam or share your email address with anyone. Lord Hutton considered that there needs to be a fairer balance between what employees contribute to their own pensions and what other taxpayers pay. It is important to note that a deferred pension taken early from the 1987 and 2006 schemes will continue to be actuarially reduced from that scheme’s deferred pension age in accordance with each scheme’s rules. This process will, understandably, take time, but the government expects that pensions administrators will make the majority of calculations by December 2015 and the majority of payments by April 2016. For those police officers who remain in service after the scheme has closed (or, if applicable, after their tapered protection ends), the number of years that they have built up in the closed scheme remains the same - but the accrual rate applied to the years that they have built up gradually increases to reflect what it would have been had the scheme remained open. Details of how the 2015 scheme works can be found in our FAQ document issued in March 2015. Hi all! You will also need to start paying tax on the elements of your salary that you previously paid as contributions, and you will need to pay a higher rate of national insurance as you will be contracted back into the state second pension. The Scheme changed on the 1st April 2015 from a Final Salary Scheme to a Career Average Revalued Earnings Scheme (CARE). The Normal Pension Age in the 2015 scheme is age 60. This will be costed on similar terms to the actuarial reduction. This recommendation is subject to the statutory negotiating process, which is ongoing. x Under the new arrangements, the Normal Pension Age for police officers will increase to age 60, compared to a Normal Pension Age for most public servants linked to state pension age (planned to rise in stages to 68). Members of police staff who wish to find out more about reform of their pensions can find more information of the relevant websites: Local Government Pension Scheme for police staff in all forces apart from the Metropolitan Police. Lord Hutton, in his independent review of public service pensions, concluded that ‘current scheme designs are not sufficiently robust to ensure the sustainability of public service pensions’, and that change is needed to ‘make public service pension schemes simpler and more transparent, and fairer to those on low and moderate earnings’. Your entitlement without commutation would be £36,000 x 40/60 or £24,000 p.aYou can commute a maximum of a quarter of your pension as a lump sum. The next 10 years would count as being at the double accrual rate (2/60ths). For each year of service up to 20 you are given 1/60 of the APP & 2/60 of APP for each year thereafter up to 30. For example, if a member wishes to retire and take their pension from age 57, they will have their pension reduced from their Normal Pension Age of 60. As you cannot opt back in, you will lose any access to the final salary link for the service you have accrued under the scheme, any prospective double accrual enhancement and the ability to take your pension from age 50 with 25 years pensionable service. The final decision rests with the police authority and can be forfeited in whole or in part, permanently or temporarily. The government is working to make public service pensions fairer and more sustainable over the long term. Police pension sharing – in this resolution method, a part of the police officer’s pension is paid into a pension for the benefit of their spouse. For more detailed information on the 1992, 2006 and 2015 schemes please select the relevant option from the list on the left of this page. Approved part-time working will be counted as pensionable service on a pro-rata basis based on actual hours worked as a proportion of full-time work. You can see how this new design affects you if you are a police officer by looking at the worked examples or by using the pension calculator. The pot will increase year on year by the rate of CPI + 1.25% until you retire and your pension comes into payment.