In September 2012, the Home Secretary announced her decision on a framework for a new police pension scheme from April 2015. Since then the Home Office have been working on the detailed design of the new scheme in consultation with the Police Negotiating Board, where the interests of police officers are represented by police staff associations. The Home Office are now able to set out the position on a number of issues that have been raised by officers in response to the initial announcement. These include:
- more detail about how the career average scheme will work
- how rules for transitional protection and accrued rights apply to part-time workers
- how rules for transitional protection apply to those on career breaks
- how reform will affect commutation for those with service in the 1987 scheme
There is much detail still to be resolved, and further circulars will be issued as progress is made. Issues still to be addressed include:
- how ill-health retirement will operate, including for those with transitional or tapered protection
- the detail of employee pension contributions
- employer contributions
- survivors’ pensions and death benefits
Police officer pensions will remain a valuable and effective way of saving for retirement. Officers will continue to benefit from significant employer contributions towards their pensions on top of their own contribution. It is difficult to envisage another investment which would provide the same guaranteed level of income for life in retirement, as well as the other benefits of an occupational pension scheme, in return for this contribution. Police officers will continue to retire earlier than most public servants and police pensions will continue to be amongst the very best available, reflecting the frontline nature of policing work. Those closest to retirement will receive protection from the reforms.
You can read the circular here: https://www.gov.uk/government/publications/circular-0142013-further-information-on-long-term-police-pension-reform
