Police officer pensions update The majority of police officers will be paying slightly less pension contributions than expected under the new scheme - set to come in on 1 April. Most officers (Tier 2 - those on a basic annual salary of more than £27,000 but less than £60,000) on the new career average salary (CARE) scheme will be paying 13.44% of their salaries into their pensions - lower than the 13.7% that had been anticipated. However, it is understood this will eventually go up to 13.7% after 2019. Tier 1 officers - those on a basic annual salary of under £27,000 - will pay 12.44%, while tier 3 officers, who earn more than £60,000, will pay 13.78%. Officers who are under the protected final salary scheme or the tapered scheme are not affected by this update from the Home Office, released on New Year’s Eve. Police Federation General Secretary Andy Fittes said: “From our point of view, we would have preferred the final salary scheme to stay in place as it was a better scheme. But the Government were very firm that final salary schemes across the public sector would be going to end so having done that we are trying to get the best possible protection for officers.” A letter from the Home Office to all members of the Police Advisory Board said: “The proposed rates for all 3 schemes have been approved by HM Treasury and PSPC(P)cross government committee are set out. The proposed tiers for 2015-19 have been designed to ensure the proposed structure will deliver an overall average member contribution of 13.7% between 2015 and 2019. This reflects the principles set out in the Police Pensions Reform Design Framework published in September 2012. Tier boundaries will be fixed for the period to 2019.” Mr Fittes added: “This is an update that Police Federation was expecting into the appraising of the new police pension scheme due to commence in April. “The design of the scheme is not completely finalised and this report is part of that process.” To find out more, go to: https://gov.uk/police-pension-reform#history and https://gov.uk/…/Police_pension_schemes_2012_valuation_… The valuations section of the site is new.
Posted on: Fri, 02 Jan 2015 15:16:05 +0000
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