- The critical date is 1st April 2012. If on that date you had 10 years or less to reach 30 calendar years’ service you are fully protected.
- If you had less than 10 years before reaching maximum serving age for your rank (55 Constables and Sergeants 60 Insp and above) you are fully protected.
- If you fall outside this period you may be entitled to Transitional arrangements, the Pension administrator will be able to provide details on when you will transfer into the new scheme.
When it’s right for you, but the last day of the month is a good date, as it means you will receive your full A/L allocation for that month (20 hours) get paid your wage for all of that month and then as your pension is paid in advance you will receive your fist pension pay cheque on the 1st day of the next month.
Pensions at Shared services should provide you with any pension forecast.
- The average of your final year’s salary is used to calculate your pension but the best salary from the previous three years applies, so if for any reason you had a higher salary in either of the 2 proceeding years that is the figure that will be used.
- A year is calculated from the date of retirement backwards in blocks of 365 days. This figure is called your Average Pensionable Pay (APP). 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. This is what is known as the double accrual period.
- For example, if you retired with 30 years service, your pension would be calculated like so:
- 20 years @ 1/60 per year = 20/60
- 10 years @ 2/60 per year = 20/60
- Total entitlement = 40/60 or 2/3 salary which is maximum
- So, for illustrative purposes only if your APP after 30 years service was £36,000. Your entitlement without commutation would be £36,000 x 40/60 or £24,000 p.a.
You can commute a maximum of a quarter of your pension as a lump sum, e.g. if you chose to commute the figures would be £24,000/4= £6000 which then has to be multiplied by your age factor. The commutation factors can be found in the Federation Diary or you can download the document Communation on Retirement for more information.
The lump sum is normally paid into your bank account the first working day after you leave and the pension is paid on the 1st of each month.
Under what conditions is my lump sum only 2.25x of my pension as opposed to the full 30 year or age 55 entitlement?
If you leave between 25yrs and 29yrs 364 days service.
13.7% of Pensionable salary
Pensionable Pay includes basic salary, plus any temporary salary on temporary promotion.
Yes, you can but:
- You would lose the death in service lump sum grant
- You would pay tax on the pension contributions which are now in your pay
- You would pay a higher rate of NI (class 1) as you are no longer in an occupational pension scheme
- Note: your pension is calculated on the last day you were in the scheme and so will not reflect any subsequent pay increases.
Yes, but only from the age of 55, and at that point it would attract index linking back to date of leaving, except for ill health retirements, when it applies immediately.
The Death in Service Lump Sum Grant is calculated as two times your pensionable salary and is paid to your Spouse or civil partner if married and your Estate if not. In addition, there is also a Widow/er’s Pension but this is only paid to a legally married spouse or civil partner and would cease in the event of them remarrying or Co-habiting. A surviving child allowance is also paid.
- Yes, but they have to be a legally married or civil partner, the scheme does not recognise common law partners.
- The entitlement ceases in the event of them remarrying or co-habiting. For widows the pension is half the officers uncommutted pension, for widowers the matters is complex as not all service prior to 1990 is calculated at the same rate.
- Guidance on widower’s entitlement should be sought from the Pension Administrators.
Not necessarily, it all depends on individual circumstances, the joint assets of the marriage, and whether your spouse has his/her own pension will impact upon the outcome. We recommend that you consult a solicitor who is a specialist in this area of law, such as Gorvin’s who have a department especially for police officers.
- If you have less than 2 years’ service your pension contributions will be returned less an adjustment for tax and NI.
- Between 2 – 25 years’ service (but not age 55) then you get a Deferred Pension which becomes payable at age 60 (includes pensions increases).
- 25 – 30 years’ service (but not age 55) Smaller lump sum (pension x 2.25) which is payable when you reach 50.
- Age 55 with any length of service you are entitled to immediate payment including maximum commutation
Yes, any salary from being temporarily promoted is included in your Average Pensionable Pay (APP)
Yes, but only in very limited circumstances. Regulation K5 of the Police Pension Regulations allows forfeiture in the event of you being convicted of Treason or for an offence which involved the abuse of your position as a police officer or bringing the Service into disrepute. The final decision rests with the police authority and can be forfeited in whole or in part, permanently or temporarily.
There is a child pension paid while the child is in full time education or vocational training up to the age of 23. The amount paid is 18.75% of the uncommutted pension for one child or 37.5% for two or more children. This becomes 25% and 50% in the event the event of the child becoming an orphan.