Police Pension Scheme 2015 (PPS 2015)

As you will be aware, the Government are reforming the Police Pension Scheme, as well as all other public service pensions.

The current final salary police pension schemes will close from April 2015, with future accrual based on the new CARE model. 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).

There will, however, also be protection for those officers closest to retirement, who will be entitled to remain in their current police pension scheme beyond 2015. This will depend on the age and length of service of each officer.

Career average schemes provide a more equitable outcome than final salary schemes. Final salary schemes, such as the Police Pension Scheme 1987 and New Police Pension Scheme 2006, provide better benefits to members with high levels of salary progression, effectively subsidised by lower benefits to members with flatter careers.

Members with incomes that do not substantially increase towards the end of their career tend to get proportionately better benefits from a career average scheme than from a final salary scheme.

The reforms have not yet been passed by parliament and so are only proposals at this stage. The final details of the new police scheme have not yet been released by the Home Office; regulations are expected to be laid before Parliament week beginning 23rd February.