Police Pension Scheme (PPS)
For most people, the retirement process is likely to take at least two months. So, if you want to avoid any unnecessary delays, it pays to plan ahead. The information on this page will help you get started.
Contents
Normal Pension Age (NPA)
Normal Pension Age (NPA) is the age you can take your full pension without any reductions. This varies depending on when you joined the scheme.
| NPA for each Police scheme |
| 2015 Police Pension Scheme (PPS) NPA = age 60 (with the option to retire from 55 with reduced pension) |
| 2006 New Police Pension Scheme (NPPS) NPA = age 60 (with the option to retire from 55 with reduced pension) |
| 1987 Police Pension Scheme (PPS) NPA = age 50 or after 25 years of membership (whichever happens sooner). |
If you stop paying into the 1987 scheme before you retire, you can take your full pension benefits (without reductions) at the age of 60 (or 50 if you have been a member of the scheme for 25 years).
If you stop paying into the 2015 or 2006 scheme, your full pension benefits will be available at the age of 60.
What are my options (standard retirement)?
Depending on which scheme you joined, your pension benefits may include one or more of the elements below.
| Scheme | Options |
| PPS 1987 | Final salary scheme benefits plus an optional tax-free lump sum |
| PPS 2006 | Final salary scheme benefits plus automatic tax-free lump sum |
| PPS 2015 | CARE scheme benefits plus an optional tax-free lump sum |
You might also find the FAQ page of the NPCC website useful
It depends on the lifestyle you want to achieve and how much it’s realistically going to cost. Alongside everyday expenses, this could involve things like travel, home improvements and hobbies.
As well as working out your monthly pension, be sure to consider any additional sources of income, such as savings, investments and rental properties. But remember, your state pension won’t kick in until you’re at State Pension Age, so if you’re hoping to retire early, you’re going to need a plan B.
If you’re wondering how much money you’ll need to enjoy a comfortable retirement, you might find The Retirement Living Standards web pages useful. They have been put together by The Pensions and Lifetime Savings Association (PLSA) to help people plan ahead for retirement – based on independent research by Loughborough University.
Visit Retirement Living Standards website Link opens in a new windowHow are my benefits calculated?
Your Police Pension Scheme (PPS) benefits are worked out based on your pay, your contributions and the date you joined the scheme. They are also adjusted annually to bring them in line with inflation.
- The pension is calculated as a proportion of your pensionable pay, based on your final salary in the last year of service.
- For each year of pensionable service up to 20 years, your pension is based on 1/60th of your average pensionable pay.
- For each year over 20 years, your pension is based on 2/60ths of your average pensionable pay (up to a maximum of 40/60ths).
For example, 25 years of service would give you 30/60ths of your average pensionable pay.
- For any incomplete years each day counts as 1/365th of a year in this calculation.
- You can also choose to convert up to 25 per cent of your pension benefits (across all your pension schemes) for a one-off lump sum payment. For every £1 of annual income you give up, you would receive an additional £12 in your lump sum.
- The pension is calculated as a proportion of your average pensionable pay [Link], based on your final salary in the last year of service.
- For each year of pensionable service, your pension is based on 1/70th of your average pensionable pay (up to a maximum of 35 years).
- For any incomplete years each day counts as 1/365th of a year in this calculation.
- You receive an automatic lump sum of four times your annual pension.
- You can also choose to increase your lump sum up to 25 per cent of your pension benefits (across all your pension schemes) by sacrificing some of your annual pension benefits. For every £1 of annual income you give up, you would receive an additional £12 in your lump sum.
On 1 April 2015, the PPS became a Career Average Revalued Earnings (CARE) scheme.
- Each year, 1/55th of your pensionable pay is added to your pension account.
- The balance in your pension account is adjusted annually to match inflation.
- You are not entitled to an automatic lump sum, but you have the option of converting up to 25 per cent of your pension benefits (across all your pension schemes) into a tax-free lump sum. For every £1 of annual income you give up, you would receive £12 in your lump sum.
Please note
If your pension benefits are affected by the age discrimination remedy (McCloud) judgement, your benefits will be recalculated and we will contact you directly with your options.
For more information, please visit our dedicated remedy page
How do I retire?
Follow the steps below to find out how you can retire.
- It’s important to speak to your employer as soon as possible and let them know that you intend to retire. While we are adjusting to the changes brought about by the age discrimination remedy, you should let your employer know at least three months before you intend to finish your employment.
- Once you’ve told your HR department that you intend to retire, it’s up to your employer to notify LPPA. We can’t start your retirement application until we receive an employer leaver form, which includes confirmation of your pay information.
- Try to let us know at least three months before you want to start taking your pension.
- You can get in touch with us via our online contact form
- If you don’t let us know that you intend to retire, we’ll confirm your retirement options in writing when you reach normal pension age (NPA).
- Once we’ve had notification that you intend to retire, we’ll send you a retirement pack in the post with a number of forms to complete.
- Return your completed forms to LPPA, along with any additional documents that have been requested. Be sure to read the forms carefully because if they are returned to us with any gaps or without the necessary signatures, it can delay your application.
- The easiest way to return the forms is via our online contact form – just take a picture (or scan them) and upload them via your phone or computer.
- After receiving your completed forms, we review the content and if we require any additional information, we drop you an email explaining exactly what we need.
- The sooner you respond to our request, the sooner we can process your application. Remember, you can send us any additional forms or information via our online contact form
- We’ll let you know once we have all the information we need. At this point, we’ll run your retirement calculations and get everything set up ready to pay your pension.
- We send your retirement payment letter shortly before your retirement date. This includes confirmation of your retirement benefits and payment dates.
- Check this document carefully, as it includes the final details of your pension.
- You should get in touch with us immediately if anything doesn’t look right. But if you’re happy with your benefit details, there’s nothing further you need to do.
- You will receive your pension lump sum payment (if you have requested one), followed by your first monthly pension payment.
- Please be aware that the date you receive your payments depends on the payroll date of your pension fund. If you have missed the current month’s cut-off date, you may be paid the following month – but any backdated pension will be included in your first payment.
- If you have any questions about tax on your pension, please contact HMRC directly.
Frequently asked questions
For more information on planning your retirement and your pension finances, visit the LPPA HelpHub
