PENSION MATTERS


ARE YOU MISSING OUT ON YOUR PENSION?


PFEW highlights concerns over low pension scheme uptake and calls


for greater support to address affordability and ensure members access the full value of their remuneration package


In June 2010, the chancellor of the coalition Government asked Lord Hutton to chair the independent Public Service Pensions commission to conduct a fundamental structural review of public service pension provision. The final version of the Hutton Report was published in March 2011.


The report introduced reformed pension arrangements for the public sector and for the police the reformed scheme was the Police Pension Scheme, 2015. It is a career average scheme that moved away from the previous final salary pensions and came into force on 1 April 2015. Lord Hutton did not recommend transitional protections and wanted all members to move to the new scheme on 1 April 2015. The Government offered transitional protections across the public sector, and they were found to be unlawful and discriminatory after the Judges and Fire Brigade Union challenged them through the courts.


The rectification of the discrimination has led to remedy and all active members have been a member of the 2015 scheme since 1 April 2022. If remedy applies, members will have a choice between their legacy scheme and the reformed scheme for the remedy period, 1 April 2015 to 31 March 2022, at retirement.


20 | POLICE | OCTOBER | 2025


However, many members were not in scope for remedy and will have moved across to the 2015 Scheme on 1 April 2015 or have joined since then and become members of the scheme at that point. Some will now have more than 10 years pensionable service in the scheme. PFEW is concerned with the number


“Members contribute 13.44 per cent or 13.78 per cent of their average pensionable pay to the 2015 pension and the contributions automatically receive full income tax relief.”


of its members who are not members of the pension across the country and will be conducting a survey that we would encourage members to complete so that we can obtain valuable information as to why some are not in the scheme. Affordability is always going to be a major reason, and we continue to press for better pay but there are differences in the opt out data that we would like to understand so that we are better placed to lobby for changes to the scheme to increase participation. Members contribute 13.44 per cent or 13.78 per cent of their average pensionable pay to the 2015 pension and the contributions automatically receive full income tax relief. The force contributes


35.3 per cent of a member’s average pensionable pay to the pension. The member contribution rates will increase slightly as we await the Government’s response to a consultation on an increase in contributions. By not being a member of the scheme, the member is not accessing a big part of their remuneration package and also death in service and ill health retirement benefits. As mentioned, we are not trying to make light of the cost-of-living crisis or the affordability issues around making pension contributions, though it would be worth asking your payroll how much they actually cost after the application of tax relief. The earliest that an immediate benefit from active pensionable service can be taken from the 2015 scheme is at age 55. At that point there is a 22.5 per cent actuarial reduction due to taking the pension before the normal pension age of 60. This will continue to be the case when the pension freedom age increases to 57 in April 2028 for members of registered pension schemes who do not have a protected pension age. If a member leaves the 2015 scheme before 55 then the pension is deferred to their state pension age. There is the opportunity to claim the pension at 55 but with a close to 50 per cent actuarial reduction. The 2015 pension is also portable and


can be transferred to other registered police pension schemes if a member leaves the police. Independent financial advice would be prudent before making such a decision, but the option is there.


There are useful resources on the Pensions page on the PFEW website where all the technical information can be found for all three police pension schemes.


PFEW is also hosting a webinar on the 2015 scheme on 6 November 2025. You can register for it via PFEW Events website.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54