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Pending Consultation – Useful Links Police Pension Scheme Police Injury Benefits

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Pending Consultation – Useful Links Police Pension Scheme Police Injury Benefits Powered By Docstoc
					Pending Consultation –                                      Useful Links                                                                           Police Pension Scheme &
Police Injury Benefits                                      For those approaching retirement:
At the Police Federation conference in May, the
                                                                Retired Police Officers Association                                                New Police Pension Scheme
Home Secretary announced her intention to launch                Email: highland:rpoas.org.uk
a consultation exercise this summer on the review
                                                            For those wishing to save more for their
                                                                                                                                                   Sgeama Peinnsein a’ Phoilis &
of the police injury awards scheme.
The public consultation was launched on 26 August           retirement:                                                                            Sgeama Ùr Peinnsein a’ Phoilis
2008. It provides everyone with an opportunity to                Standard Life Police AVC / Stakeholder
make their own views known. There will also be                   Scheme                                         Newsletter 2008                                       Cuairtlitir 2008
discussions with the Police Negotiating Board (PNB).             Web: www.mypensioninfo.com/police              Annual Statement for Active Members                   Aithris Bhliadhnail do Bhuill Cosnaidh
The proposals in the consultation document cover                 or Tel: 0800 33 33 15
a range of issues, including the eligibility criteria for
receiving an award, the structure of benefits under         For those needing general police guidance:
the scheme for both former officers and their                   Northern Branch of Scottish Police              Annual Benefit Statement                              Which Pension Scheme
survivors, and the role of police authorities and               Federation                                      The enclosed benefit statement shows your             If you joined Northern Constabulary on or after
selected medical practitioners.                                                                                 current and projected pension benefits in the
                                                                Web: www.northernpolicefederation.com                                                                 the 6 April 2006 (and do not have continuous
Key proposals include:                                          or Tel: 01463 250381                            Police Force as at 31 March 2008.                     service with a previous Police Force before this
• introduction of life-long adult survivor benefits                                                             In addition we like to keep you informed of any       date) then you will be a member of the New
     and the extension of survivor benefits to                                                                  pieces of news and explain areas of your Pension      Police Pension Scheme (NPPS).
     unmarried and unregistered partners                                                                        Scheme that we feel will be of interest to you.       If you joined Northern Constabulary before the 6
• simplification of survivor awards                                                                             Please note that the pensionable pay figure that      April 2006 (and elected not to transfer
• revising the eligibility criteria so it conforms                                                              we have used in your annual benefit statement is      to the NPPS) then you will be a member of the
     more closely to the concept of ‘in the line of         Further Information                                 based on the amount of pension contributions          Police Pension Scheme (PPS).
     duty’. This includes removing eligibility for          If you have any queries on the enclosed             that you have paid in the year up to the 31 March     Your Annual Benefit Statement will clearly state
     injuries sustained on journeys to and from                                                                 2008. The benefits quoted are based on the
                                                            statement, or feedback regarding the information                                                          which scheme you are a member of.
     work, and deaths sustained in the same
                                                            provided, please do not hesitate to contact the     pensionable pay to 31 March 2008 and do not
     circumstances
                                                            Pensions Section, quoting your national             illustrate any previous higher pay that may apply.
• a five-year time limit for new post retirement
                                                            insurance number.                                   Your actual retirement benefits are normally          Security of Pension
     claims, except in the case of named
                                                            Pension Section                                     calculated on your pensionable pay rates in the       The rules for both the PPS and NPPS are written
     progressive illnesses or those with a long
     incubation period, and an automatic cut-off for        Finance                                             365 days leading up to your date of leaving.          under statute, which means that
     new claims at age 65                                   The Highland Council                                However if any of the previous 2 years pay are        your pension benefits are safe, secure and fully
                                                            Glenurquhart Road                                   higher these will be used in the final calculation.   guaranteed.
• an automatic halving of each officer’s minimum
     income guarantee at 65, with no further reviews        Inverness
                                                            IV3 5NX
It is important to note that these proposals will
affect only those officers still serving at the time of
                                                                                                                How are my pension benefits calculated?
                                                            Email: pensions.section@highland.gov.uk
implementation, regardless of whether they have             Website: www.highland.gov.uk                        For PPS members your ordinary pension benefits are calculated as 1/60th of your length of membership
already sustained an injury.                                                                                    in your pension scheme (membership doubled after 20 years, each year equals two years) multiplied by
                                                            Alternatively you can telephone from                your final pensionable pay to date of leaving. You also have the option to give up part of your pension
Those officers already retired at the point the
                                                            9.00am to 5.00pm (Monday to Friday)                 into a tax-free lump sum.
changes are implemented will still be dealt with
                                                            on (01463) 702441.                                  For NPPS members your ordinary pension benefits are calculated as 1/70th of your length of membership
under the system, as it currently stands, even if
they have not yet applied for an award.                                                                         in your pension scheme multiplied by your final pensionable pay to date of leaving.
The public consultation will last for 12 weeks, and                                                             In addition you will receive a tax-free lump sum based on 4 times your annual pension, you will also have
is open to all parties.                                                                            PR08-166-F   the option to give up part of your lump sum to provide additional pension.
Payment of Benefits                                         Commutation (Giving up Pension                        Death Benefits                                           New Legislation – Revised
You are eligible for payment of your pension                for Lump Sum) – PPS Only                              In the event of your death, pension benefits may         Commutation Factors
benefits under the following circumstances:                 If, on retirement, you prefer to have a lump sum as   become payable to a surviving spouse, civil
                                                                                                                  partner, nominated unmarried partner and if              Since 1998 age and gender related factors were
Type of Retirement - Police Pension Scheme                  well as a pension you can provide one by
                                                            commutation. To do this you need to give written      applicable any eligible dependent children:              used in calculating the lump sums payable to
Compulsory Retirement Age: Depends on Rank
Early Retirement (member initiated):                        notice to the Pensions Section, no earlier than 4                                                              those in the PPS who decided to commute part of
Age 50 and have at least 25 years’ membership.              months before your intended retirement and no         Death Benefit - Police Pension Scheme                    their pension (vice versa for the NPPS).
Any age and have attained 30 years’ membership.             later than the day before your pension is due to      Death Grant: 2 times your annual pensionable pay.
Ill Health: Any age with at least 2 years’ membership.                                                            Nomination not available.                                New factors were introduced in September 2008
                                                            come into payment. You should state how much of
Interest of Efficiency (employer initiated):                your pension (up to a maximum of one quarter or       Spouse and Civil Partner Pension: Minimum of 2           (backdated to 1 October 2007 for the PPS only),
Your Police Force may require you to retire if they                                                               years’ membership. 50% of notional ill health pension.   with the main differences being:
consider that your retention in the police service
                                                            2.25 times pension if certain conditions apply)
                                                            needs to be converted into a lump sum.                Unmarried Partners: Not available.
would not be in the general interest of efficiency.                                                                                                                        •   PPS and NPPS Factors now the same for
You must, however, be eligible at that time for immediate   For members of the PPS, the amount provided as        Children’s Pensions: Payable subject to certain
                                                                                                                  conditions.                                                  both males and females
payment of an age retirement pension, having attained        a lump sum is decided by factors provided by the
at least 30 years’ membership.                              Government Actuary. The factors used are                                                                       •   PPS Factors now higher therefore increasing
                                                            determined by your age in years and completed         Death Benefit - New Police Pension Scheme                    the amount of lump sum
Type of Retirement - New Police Pension Scheme
Compulsory Retirement Age: Depends on Rank                  months on the day your pension commences.             Death Grant: 3 times your annual pensionable pay.
                                                                                                                  Option to nominate a beneficiary.                        •   NPPS Factors now lower therefore reducing
Early Retirement (member initiated): Aged 55 with at        The factors applied are the same for both men and
least 2 years’ membership.                                                                                        Spouse and Civil Partner Pension: Minimum of 2               the amount of annual pension exchanged
                                                            women, for example at age 55, every £1 of pension
                                                                                                                  years’ membership. 50% of notional ill health pension.
Ill Health: Any age with at least 2 years’ membership.      commuted will provide £18 of lump sum.                                                                         •   PPS and NPPS Factors now age related in
Interest of Efficiency (employer initiated):                                                                      Unmarried Partners: Minimum of 2 years’
                                                                                                                  membership. 50% of notional ill health pension. Option       complete years and months, which removes
Your Police Force may require you to retire if they
consider that your retention in the police service          Commutation (Giving up Lump                           to nominate unmarried partner.                               the previous situation for those in the PPS,
would not be in the general interest of efficiency.                                                               Children’s Pensions: Payable subject to certain
                                                            Sum for Pension) – NPPS Only                          conditions.
                                                                                                                                                                               when the lump sum could be substantially
You must, however, be eligible at that time for immediate                                                                                                                      smaller if retirement was delayed when
payment of an age retirement pension, having attained       If, on retirement, you prefer to have a higher
at least 35 years’ membership and reached age 55.           pension, you can exchange part of your lump sum                                                                    retiring on or around a birthday
                                                                                                                  Please note that your annual benefit statement
                                                            for an increased annual pension for you only.                                                                  For example, a male police officer (PPS) decides
                                                                                                                  will only show an amount of spouse or civil
Lifetime Allowance                                          Pensions for survivors cannot be increased in
                                                            this way.
                                                                                                                  partner’s pension where the Pensions Section             to retire on their 50th birthday. Under the old
                                                                                                                  have a copy of your marriage or civil partnership        factors for each £100 of pension they give up he
The new “simplified” HM Revenue and Customs                 You can exchange any amount of your lump sum,         certificate on file.
rules for taxation of pension came into force on 6          including all of it if you wish.                                                                               will receive £1,500 as a lump sum (£1,725 for a
April 2006 (A Day). One of the changes was the                                                                    Therefore, should your benefit statement show
                                                            To do this you would give written notice to the       a ‘nil amount’ and you are married or have a             female).
setting of a lifetime allowance, whereby if a member
exceeded this limit then a tax liability, in addition to    Pensions Section, no earlier than 4 months before     registered civil partner then please send a copy of      The revised factors for both males and females at
normal income tax would be applied. The lifetime            your intended retirement and no later than the day    your certificate to the Pensions Section so that         age 50 will provide £1,900 of lump sum for each
allowance for 2008/09 is set at £1.65 million.              before your pension is due to come into payment.      they can update their records.
                                                                                                                                                                           £100 of pension given up.
Your lifetime allowance is calculated as 20 times           For members of the NPPS, the amount provided as
your annual pension plus your lump sum, plus the            extra pension is decided by factors provided by the
value of your AVC fund if this applies. When your           Government Actuary. The factors used are
pension benefits come into payment you will be              determined by your age in years and completed           Change of Name/Marital Status/Gender/Address
asked for details of any other pension benefits that        months on the day your pension commences.
                                                                                                                    If you change your name, marital status, gender or address then please advise the Pension Section, in
you have accrued in order that the Pensions Section         The factors applied are the same for both men and
                                                                                                                    writing, enclosing copy of relevant certificate where appropriate.
can calculate if you have exceeded your lifetime            women, for example at age 55, every £18.60 of
allowance. This new limit is unlikely to affect all but     lump sum commuted will provide £1 of additional
the highest earners in the immediate future.                pension per annum.

				
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