Additional Notes for Active Members of the 2015 Police Pension Scheme

These notes provide more explanation of the information contained in your 2024 annual benefit statement.

The information provided in this statement is based on your leaving active membership the day before your Normal Pension Age (NPA).

 If you leave the 2015 scheme before your benefits are payable, your NPA will change to become the equivalent of your state pension age. 

You can choose to retire from age 55, however your 2015 pension benefits may be reduced if you take them before your NPA. 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.  

When you claim your pension, you will have the option to exchange some of your pension for a tax free lump sum. We have shown the benefits based on not giving up annual pension and on giving up the maximum pension possible. You can also choose a lump sum value between the two lump sums shown in your statement. 

If you die while contributing to the scheme, a lump sum death grant will be paid to:

  • your spouse or civil partner, or
  • your declared partner, at the Chief Constable's discretion, or 
  • a nominee, if you do not have a partner, at the Chief Constables discretion, or 
  • your personal representative, as part of your estate.

You can provide a nomination or update an existing one the Member Portal. Alternatively you can complete a Death Grant Expression of Wish form available form our website.

Please Note- the death grant lump sum would only be paid to your nominee in the event that you do not leave a surviving partner. In the absence of a surviving partner or valid nomination, the death grant would be paid to your estate and would therefore be subject to inheritance tax. 

News

Age discrimination court case

On 1 April 2022 the Public Service Pensions and Judicial Offices Act 2022 (PSPJOA) came into force, and confirms that members will be returned to their final salary schemes for the period 1 April 2015 to 31 March 2022 in powers that will be enacted by 1 October 2023. This is known as the retrospective remedy. 

If your pension record is affect by the McCloud remedy, you will receive a Remedial Service Statement (RSS) instead of your usual ABS. 

If you have multiple pension records, you may receive an ABS for some records and an RSS for others depending on your eligibility for the McCloud remedy. 

For more information please see: McCloud/Sargeant/Age Discrimination

Partner's pension

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

If you are in a civil partnership or are not married and wish to nominate a cohabiting partner, you can do so using a nomination of cohabiting partner form, available from our website: www.hants.gov.uk/pensions.

If you have a spouse or civil partner, they automatically qualify to receive a pension if you were to die in service, provided you married or formed a civil partnership at least 6 months before you died. This is a scheme benefit that is paid to surviving partners and will not reduce or affect your pension even if you do not have a partner.

If you have a declared partner and meet certain conditions, your partner may be eligible for a pension even though you are not married or in a civil partnership. You cannot nominate anyone else to receive a partner's pension.

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.

If your surviving partner is more than 12 years younger than you, his or her pension will be reduced to reflect the age difference. This reduction will be 2.5% for every year or part of a year by which he or she is more than 12 years younger than you, up to a maximum reduction of 50%.

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.

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.

Pensions and tax at retirement

The Lifetime Allowance (LTA) was the amount you could take from all your pension savings without facing a tax charge. The Finance Act 2024 abolished the LTA in full with effect from 6 April 2024. The LTA has been replaced by two new tax allowances.

  • Lump Sum Allowance (LSA) - The LSA is a limit on the total amount of tax-free cash an individual can take from all their pension savings. It is set at £268,275 and there is no provision in the legislation for this limit to rise. 
  • Lump Sum and Death Benefit Allowance (LSDBA) - The LSDBA is a limit on the amount of tax free cash that can be taken by an individual and the lump sum death benefits that can be paid in respect of an individual when they die. It is set at £1,073,100 and there is no provision in the legislation for this limit to rise.

Transitional tax-free amount certificate (TTFAC)

If you took payment of any pension or lump sum before 6 April 2024, these payments will have used up part of your lump sum allowances. Under HMRC rules, we must assume that you took the maximum lump sum allowed.

If you took less than the maximum lump sum allowed, you can get a TTFAC. The certificate sets out the total lump sums you have received. We will then use these amounts to calculate how much of the lump sum allowances you have used, rather than assuming you have taken the maximum amount. For most members, a TTFAC will have no effect on the lump sum they can take from the LGPS. The allowances will generally only affect members who have built up very large pensions. 

If you have a TTFAC you must send it with your retirement declaration form. If you have sent us a TTFAC, you do not need to tell us about pensions or lump sum taken before 6 April 2024. 

if you are thinking about applying for a TTFAC, you may wish to seek specialist independent financial advice. Some members could be worse off if they apply than they would be without a certificate.

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 2023.

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