Police officers have excellent pension provisions. Here’s how to understand your scheme.
For the wider cluster covering workplace pensions, scheme types and other public-sector routes, use the main Workplace Pensions hub.
Police Pension Schemes
Which Scheme Are You In?
| Scheme | Service Period |
|---|---|
| PPS 1987 | Before 2006 |
| NPPS 2006 | 2006-2015 |
| CARE 2015 | April 2015+ |
If You Were Serving Before 2015
| Situation | Position |
|---|---|
| Pre-2012 service | May have protected benefits |
| McCloud remedy | Recent court case affects |
| Check your | Annual benefit statement |
2015 CARE Scheme
Key Features
| Feature | Details |
|---|---|
| Type | Career Average Revalued Earnings |
| Accrual rate | 1/55.3 (1.81%) per year |
| Normal pension age | 60 |
| Employer contribution | ~31% |
| Revaluation | CPI |
Contribution Rates (2025/26)
| Pensionable Pay | Your Contribution |
|---|---|
| Up to £27,000 | 12.44% |
| £27,001-£60,000 | 13.44% |
| Over £60,000 | 13.78% |
After Tax Relief
| Your Rate | Effective Cost (20%) | Effective Cost (40%) |
|---|---|---|
| 13.44% | ~10.75% | ~8.1% |
Example Pension (2015 Scheme)
| Career | Pension |
|---|---|
| 30 years at average £45,000 | 30/55.3 × £45,000 = ~£24,400/year |
| Plus revaluation | Higher at retirement |
Older Schemes
PPS 1987
| Feature | Details |
|---|---|
| Type | Final salary |
| Accrual | 1/60th per year |
| Max | 40/60ths (2/3rds) |
| NPA | 55 (30 years) |
| 30-Year Example | Pension |
|---|---|
| Final salary £50,000 | 30/60 × £50,000 = £25,000/year |
NPPS 2006
| Feature | Details |
|---|---|
| Type | Final salary |
| Accrual | 1/70th per year |
| NPA | 55 (35 years) |
Death Benefits
If You Die in Service
| Benefit | 2015 Scheme |
|---|---|
| Lump sum | 3× pensionable pay |
| Partner pension | 37.5% of pension you’d have got |
| Children’s pension | Also provided |
After Retirement
| Benefit | Details |
|---|---|
| Partner pension | 37.5% of your pension |
| Guaranteed period | 10 years |
Nomination Form
| Important | |
|---|---|
| Keep updated | Nominate partner/beneficiaries |
| Review after | Life changes |
Ill-Health Retirement
Three Tiers
| Tier | Criteria | Benefit |
|---|---|---|
| Upper tier | Can’t do any work | Enhanced pension |
| Lower tier | Can do other work | Normal pension |
| Injury Award | Duty-related | Additional compensation |
Qualifying
| Assessment | Process |
|---|---|
| Medical evidence | Required |
| SMP review | Selected Medical Practitioner |
| Force decision | Based on evidence |
Commutation (Tax-Free Lump Sum)
Options At Retirement
| Choice | Details |
|---|---|
| Take pension only | Full annual income |
| Commute some | Swap pension for lump sum |
| Maximum | Usually 25% of value |
Commutation Rate
| Typical | Rate |
|---|---|
| £12 lump sum | For £1/year pension given up |
| Varies by | Age and scheme |
Example
| Retiring Officer | |
|---|---|
| Annual pension | £24,000 |
| Give up | £4,000 pension |
| Receive | ~£48,000 lump sum |
| Ongoing pension | £20,000/year |
Should You Commute?
| Consider | If |
|---|---|
| Need lump sum | Specific use (mortgage etc) |
| Tax-free | Is attractive |
| Guaranteed income | May be more valuable long-term |
Retirement Options
Normal Retirement
| 2015 Scheme | Age 60 |
|---|---|
| No reduction | Full pension |
| Lump sum option | Available |
Early Retirement
| Before NPA | Consequence |
|---|---|
| Actuarial reduction | Lower pension |
| Percentage varies | By years early |
| Consider carefully | Long-term impact |
Deferred Retirement
| Work Beyond NPA | Consequence |
|---|---|
| Pension increases | Late retirement factor |
| Can continue | Accruing benefits |
Abatement Rules
If You Return to Police Work
| Situation | Rule |
|---|---|
| Re-employed in police | Pension may be reduced |
| Abatement | Limits total income |
| Check | Specific rules |
Secondary Employment
While Serving
| Requirement | Detail |
|---|---|
| Business interests | Must declare |
| Approval | May need force permission |
| Doesn’t affect | Pension accrual |
Divorce and Pensions
Pension Sharing
| If Divorcing | Consider |
|---|---|
| Pension sharing order | May be required |
| Valuation | CETV calculated |
| Significant | Police pensions often large |
| Legal advice | Essential |
Tax Considerations
Annual Allowance
| Issue | Detail |
|---|---|
| High pension growth | May exceed £60,000 |
| Senior officers | More likely to breach |
| Tax charge | On excess |
| Carry forward | 3 years available |
Check Each Year
| If Annual AA Charge | Options |
|---|---|
| Pay via Scheme Pays | Reduces pension |
| Pay personally | May not be possible |
| Take advice | Complex area |
Federation Benefits
Police Federation
| Benefit | Details |
|---|---|
| Representation | Employment matters |
| Insurance discounts | Often available |
| Legal support | For members |
| Group schemes | Various |
Summary
Why Police Pension Is Excellent
| Feature | Value |
|---|---|
| Employer contribution | ~31% |
| Retirement age | 60 (vs 67+) |
| Guaranteed income | For life |
| Inflation-linked | CPI |
| Ill-health cover | Three tiers |
Don’t Opt Out
| You’d Lose | Value |
|---|---|
| 31% employer contribution | Huge |
| Early retirement | Age 60 |
| Guaranteed pension | Security |
| Death benefits | Family protection |
Checklist
| Action | Done? |
|---|---|
| Know which scheme(s) | ☐ |
| Check benefit statement | ☐ |
| Understand contribution rate | ☐ |
| Nomination form updated | ☐ |
| Understand commutation | ☐ |
| Check annual allowance position | ☐ |
Key Contacts
| Resource | For |
|---|---|
| Force pensions administrator | Your specific queries |
| Police Pension website | policepensionschemes.org.uk |
| Police Federation | policeconduct.gov.uk |
| Pension Wise | Free guidance |