Police Scheme

New entrant

If a police officer opts out of the 2015 Police Pension Scheme (PPS) with less than 3 months membership from commencement of employment he/she/they is treated as if had not joined the pension scheme.  

The refund of the pension contributions is paid to the officer by the employer through the payroll system.  

If a police officer is automatically enrolled into the 2015 scheme and opts out with less than 3 months membership, they are treated as never having joined the 2015 scheme. 

The refund of the pension contributions is paid to the officer by the employer through the payroll system.  

If a police officer moves into the 2015 scheme and opts out within 3 months of moving over they are treated as never having joined the 2015 scheme.  

The refund of the pension contributions is paid to the officer by the employer through the payroll system.  

Deferred pension 

If a police officer opts out of the pension scheme or leaves employment with at least 2 years qualifying service, then a deferred benefits is awarded. 

Calculation
The deferred benefit is total accrued earned pension. This is made up of: 

• The opening balance of earned pension from the last active scheme year and the index adjustment applied to it  
• The amount of earned pension in the last year 
• The amount of any transferred pension in the last active year  

Increase applied 

The deferred benefits will be increased in April of each year in line with the ‘Consumer Prices Index (CPI) so that the original value is maintained. 

Death in Service 

If a police officer dies whilst still serving, providing he/she is still a member of the PPS at the time of death the following benefits are payable;  

1. A lump sum death grant payable under the 2015 scheme  

1. A surviving spouse, civil partner’s or, subject to certain qualifying conditions, a co-habiting partner’s pension in the 2015 scheme. The benefits will be paid under the 2015 scheme, plus 2006/1987 benefits may also be payable depending on the marital status of the officer  

1. Pensions for eligible children  

As the death in service benefits are different under each scheme, please contact Local Pensions Partnership Administration (LPPA) who will provide the details on a case-by-case basis.  

Death grant  

If an active member of the 2015 scheme dies, the scheme manager must pay a lump sum death grant.  

The amount of the lump sum death grant is –  

1. If the member’s service is at least 12 months – 3 x the member’s “final pay”  

1. If the members service is less than 12 months – 3 x the member’s “annualised final pay”  

Annualised final pay means:  

FP x 365 (or 366 days if the active membership includes 29 February) N  

FP = pensionable earnings in respect of the period of service  

N = the number of days in that period  

Spouse’s/partner’s benefits  

Providing the officer has at least two years’ Qualifying Service, the spouse or civil partner is entitled to a pension when the officer dies. The pension payable is 50% of the ill-health pension that the officer would have received if they had been permanently medically unfit for regular employment at the time of their death.  

If the officer’s spouse or civil partner is more than 12 years younger than them, his or her pension will be reduced to reflect the age difference. This reduction will be 2.5% for every year by which the spouse or civil partner is more than 12 years younger than the officer, up to a maximum reduction of 50%.  

If the officer marries or forms a civil partnership within the six months prior to the date of death, then the Police Pension Authority has discretion to withhold payment of the pension payable to the spouse or civil partner.  

Children’s benefits  

Providing the officer has at least two years’ Qualifying Service, children’s pensions are payable to an eligible child.  

Under the regulations an eligible child, in relation to a deceased member of this scheme, means a person mentioned in (2) who meets one of the conditions in (3).  

(2) The persons are;  

1. a) a natural child of a member born before the member’s death;
2. b) a natural child of a member born after the member’s death if the child’s mother was pregnant with the child at the date of the member’s death;
3. c) an adopted child or step-child of the member; or 
4. d) any other child or young person who, in the opinion of the scheme manager, at the date of the member’s death was substantially dependent on the member, financially or because of physical or mental impairment. 

(3) The conditions are;  

1. a) that the person is 18 or under;
2. b) that the person is under 23 and in full-time education or full-time vocational training on a course of at least one year’s duration;
3. c) that the person is under 23 and, in the opinion of the scheme manager, unable to engage in any regular employment because of physical or mental impairment;
4. d) that in the opinion of the scheme manager 
5. i) the person is dependent on the member at the date of the member’s death because of physical or mental impairment;
6. ii) the person is unable to engage in any regular employment because of that impairment; and 

iii) that impairment is likely to be permanent.  

The pension payable to an eligible child is generally 25% of the officer’s pension entitlement at the date of their death, but if there are three or more eligible children, each receives an amount equivalent to 50% of the officer’s pension entitlement divided by the number of eligible children. 

Deferred pension 

If a police officer opts out of the pension scheme or leaves employment within at least 2 years qualifying service then a deferred benefits is awarded. 

The 2006 Police Scheme is a final salary pension scheme which means that in most cases pensionable pay is based on the last 365 days of pensionable service (there is automatic provision in the regulations for the best of the last 3 years to apply). 

Calculation 

The calculation is based on the service the police officer has accrued within the pension scheme, the accrual rate at 1/70th and the final pay at date of leaving. 

The formula for calculating a deferred pension would be: 

• 1/70th x pensionable service x final pay 
• Plus lump sum 
• 1/70th x pensionable service x final pay x 4 

Example: 

A police officer aged 27 who has completed 6 years’ service and whose final pay is £25,000.00 would be entitled to a deferred pension of: 

Pension – 6/70 x £25,000.00 = £2,142.86 a year 

Lump sum – 6/70 x £25,000.00 x4 = £8,571.44 

Increase applied 

The benefits are increased in April of each year in line with the CPI so that the original value is maintained.  

Deferred benefits normally attract increases from the day following either: 

1. The last day of service, or 

1. The last day of the final pay period used in the calculation of benefits, whichever is the earlier. 

Death in Service 

The lump sum death grant is payable under the 2015 scheme regulations.  

Spouse’s/partner’s benefits  

Providing the officer has at least two years’ Qualifying Service, the spouse or civil partner is entitled to a pension when the officer dies. The pension payable is 50% of the ill-health pension that the officer would have received if they had been permanently medically unfit for regular employment at the time of their death.  

If the officer’s spouse or civil partner is more than 12 years younger than them, his or her pension will be reduced to reflect the age difference. This reduction will be 2.5% for every year by which the spouse or civil partner is more than 12 years younger than the officer, up to a maximum reduction of 50%.  

If the officer marries or forms a civil partnership within the six months prior to the date of death, then the Police Pension Authority has discretion to withhold payment of the pension payable to the spouse or civil partner.  

Children’s benefits  

Children’s pensions are the same regardless of whether the police officer was male or female.  

Under the regulations a child (child survivor), in relation to a deceased member of this scheme is;  

1. i) a natural child, step-child or adopted child of the officer concerned (including a child conceived before the officer’s death and born after that death. or;
2. ii) any other child who at the time of the death of the officer concerned was substantially dependent, financially or by reason of permanent disablement, on him. 

Where more than two child allowances are payable the total cannot exceed 50% of the deceased’s pension. Where the child is an orphan, the amount is increased to 50% and if there is more than one child the 50% is shared between them. 

Deferred pension 

If a police officer ceases to be a member of the PPS and has at least two years membership within it, or has transferred in service, they become entitled to deferred benefits. 

Calculation 

The calculation is based on the service the police officer has accrued within the pension scheme, the accrual rate of 1/60th and the final pay at date of leaving. 

However, it also as an additional element as it is calculated as a proportion of the pension the member would have received had they continued until retirement age. In this way the member still receives some advantage of the ‘doubling’ of service even though they may have left prior to the point in their career where service is, in fact, doubled for pension purposes. 

Example 

A police officer leaves the Police service after 10 years service at the age of 40. His average pensionable pay is £32,000. The officer could have stayed on until age 55, by which time he would have accrued 25 years service.  

The officer’s hypothetical pension would be: 

Average pensionable pay x service at age 55 including doubling divided by 60 

32,000 x 30 divided 60 = £16,000 

The officer’s deferred pension would be: 

Hypothetical pension x actual length of service divided by potential service to age 55, actual length 

16,000 x 10 divided by 25 = £6,400 

Increase applied 

The benefits are increased in April of each year in line with the CPI so that their original value is maintained. 

Deferred benefits normally attract increases from the day following either: 

1. c) the last day of service, or
2. d) the last day of the final pay period used in the calculation of benefits, whichever is the earlier.

Death in Service 

The lump sum death grant is payable under the 2015 scheme regulations.  

Spouse’s benefits  

Providing the officer has at least two years’ Qualifying Service, the spouse or civil partner is entitled to a pension when the officer dies. The pension payable is 50% of the ill-health pension that the officer would have received if they had been permanently medically unfit for regular employment at the time of their death.  

Children’s benefits  

Providing the officer has at least two years’ Qualifying Service, children’s pensions are payable to a child.  

A child’s allowance is payable to the child of a police officer being;  

1. a legitimate or illegitimate child,  

1. a step-child,  

1. an adopted child  

1. any child substantially dependent on the police officer, being related to the officer or being a child of the spouse.  

The child will receive a pension up until their 16th birthday or, if they continue in full time education, to the date their course finishes or, if earlier, to their 23rd birthday.  

If the child has a disability which prevents them from obtaining gainful employment, the pension that we pay will continue for as long as the disability lasts.  

The amount of pension that your child will receive is normally 18.75% of the notional ill health pension entitlement. If there are more than 2 children, the children’s pension will be 37.50% of the officer’s pension divided by the number of children.  

If the child is an orphan, the pension will increase to 25% of the notional ill health pension entitlement (50% divided by the number of children if there are more than 2).