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: email@example.com 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.