Increasing Your Benefits
You may choose to increase your pension provision, particularly if you are unable to build up 30 years’ pensionable service before your intended retirement age. You have the option to purchase increased benefits in PPS through ‘added years’.
You are also free to take out an entirely separate personal pension plan at the same time as you contribute to PPS.
You are strongly recommended to seek independent financial advice before taking any action. Your police authority is not empowered to give financial advice to you.
HM Revenue and Customs place overall limits on pension contributions which are tax-deductible, but these are very generous. The current position is that, unless you are a very high earner you are normally able to pay up to the whole of your taxable earnings in a tax year in pension contributions and have the whole amount allowable against tax – although there may be limitations in any year in which your PPS benefit entitlement has increased substantially (for example, if you have been promoted or have taken up a more senior appointment).
Added Years contracts will begin from your next birthday and will cease at either your 55th or 60th birthday depending on your rank. It is our understanding that you will continue to pay your additional contributions after the introduction of the new 2015 scheme.
You will NOT be eligible to buy added years if:
- You have left the scheme (opted out)
- You are on a career break
- You are within 12 months of your compulsory retirement age
Before You Apply:
You may be eligible to purchase Added Years if:
- You are a Constable or Sergeant and a member of the Police Pension Scheme 1987 (PPS) and CANNOT accrue 30 years service by the age of 55.
- You are an Inspector or above and a member of the Police Pension Scheme 1987 (PPS) and CANNOT accrue 30 years service by the age of 60.
If you do not meet the criteria above you will NOT be eligible to purchase Added Years.
Added Years contracts are a long term commitment. If you do take out a contract it CANNOT be cancelled and will continue until your Normal Retirement Date.