Additional Notes for Active Members of the 1987 Transitioned Police Pension Scheme

News

Age discrimination court case

This year's Annual Benefit Statement provides an estimate of pension benefits built up in your current scheme membership to 31 March 2021.

On 20 December 2018, the Court of Appeal ruled in McCloud/Sargeant that the transitional arrangements introduced as part of the 2015 reforms to the Firefighters' and Judges' pension scheme were discriminatory and, therefore, unlawful. The Government subsequently accepted that this ruling applied to eligible members in service as at 31 March 2012 in all the main public pension schemes.

The Government has consulted on the changes needed to remove discrimination from the schemes and work is ongoing to make these changes. For further information please see the 4 February 2021 Written Ministerial Statement: Written statements - Written questions, answers and statements - UK Parliament

The work to make the legislative and systems changes to enable revised benefits to be calculated and the effects of discrimination to be removed is complex and will take time. This means that it has not been possible to reflect the impact of the Court of Appeal ruling in this year's Annual Benefit Statements.

When can I take my benefits?

The information provided in this statement is based on you leaving active membership the day before your Normal Pension Age (NPA). Your 1987 benefits can be paid earlier and separately to your 2015 benefits, from age 50 with at least 25 years service or when you achieve 30 years service.

If you take your pension before your NPA, reductions may be applied to your pension. If you take your pension after your NPA, increases will be applied. At any time, the Government may change the factors and methodology used to calculate the reductions and increases which may result in a corresponding change to the pension you are paid at retirement.

What options do I have when I take my benefits?

When you retire, you can exchange some of your annual pension to provide a retirement lump sum. The amount of the lump sum will depend don how much pension you exchange and your age when it is paid. If the lump sum is more than 25% of the total value of your pension, HM Revenue and Customs rules mean you will have to pay 55% tax on the excess.

If you retire before the NPA for your rank and you have between 25 and 30 years service any lump sum would be restricted to 2.25 times your pension.

You can choose to take just your 1987 scheme benefits when you leave the scheme and take your CARE benefits separately.

Partner's pension

A surviving partner's pension is shown if our records indicate you are married or in a civil partnership.

If you are currently married but subsequently re-marry after you retire, your new spouse may not be entitled to as much pension as your original spouse was.

Your dependant children may also be eligible to receive a pension if you die in service and they meet certain conditions. Please see our website for more information.

Nomination of partners in the 2015 scheme

If you are moving from the 1987 scheme to the 2015 scheme you may be able to nominate a cohabiting partner to receive a partner's pension and express for them or other nominees to receive a death grant lump sum should you die in service.

Your pensionable pay

Your pensionable pay was provided by your employer. If you do not agree with the amount shown on your statement, please contact your employer.

Death grant lump sum

If you die while contributing to the scheme, a lump sum death grant will be paid to your spouse or civil partner, or to your personal representative as part of your estate. If you have a spouse or civil partner they automatically qualify to receive a pension if you were to die in service.

Lifetime Allowance

The LTA applies to the value of your combined UK registered pension schemes and some overseas schemes; the value shown relates to this pension.

Most people's benefits will not exceed the LTA, but we need to provide this information to everyone.

The information shown here is not a transfer value. To obtain a transfer value, please complete a cash equivalent transfer value form, available from our website.

The LTA for 2020/21 is £1,073,100. There will be no increase to the LTA for five years from 6 April 2021. Please see our website for more information. The value shown is based on the pension benefits on this statement only.

Annual Allowance

HM Revenue and Customs sets an annual allowance, which is the amount by which your benefits can increase in a year without being subject to tax. The standard annual allowance is currently £40,000. If you have exceeded the standard annual allowance limit in the year you will receive a Pension Savings Statement by 6 October 2021.

A tapered annual allowance may apply for people with adjusted income of £150,000 and over. If you think this applies to you, please contact us.

You can find more information about annual allowance on our website.

Previous Years' Benefit Statement Notes

2021 notes for 1987 (transitioned) benefit statement notes