Increasing your pension
Police Pension Scheme 1987 (PPS 1987)
You may wish to increase your pension, particularly if you do not qualify for the maximum amount of 30 years' service before your retirement age. Buying extra 60ths will increase your pension but it won't allow you to retire any sooner.
- Cost of extra 60ths
The extra contributions cover the entire cost of providing the added 60ths; your Police Authority would not contribute to them.
- The cost of purchasing additional 60ths is based on your age on your birthday following your election
- The cost of purchasing extra 60ths increases as your salary increases
- You would start paying the extra 60ths on the birthday following your election
- You would keep paying them up to the day before your compulsory retirement date, age 55
- Within HMRC limits, you will not pay tax on your extra 60ths contributions
- The Police Authority can require you to undergo a medical examination at your own expense
If you are promoted to a rank where the compulsory retirement age is 60, and you can then attain 30 years' pensionable service, you will have purchased the extra 60ths for nothing, unless you retired on ill health grounds (or died in service).
You would have to pay for the extra 60ths during any unpaid absences, as if you were receiving pay.
- Extra 60ths in excess of the 15% limit
To buy extra 60ths in excess of the 15% contribution limit, you can pay by a capitalised lump sum, payment of which is due on your birthday following the date of your election. You cannot use this method to pay for extra 60ths, which could be paid for within the 4% additional contribution level.
The cost of purchasing by the capitalised lump sum method will change if you have a birthday, or your pay increases, between now and making your election.
- Ceasing a contract for extra 60ths early
You can only stop paying your extra 60ths in exceptional circumstances:
- You can apply to your Police Authority on the grounds of hardship, who may consent to ceasing the contributions early. You will be credited with what you have purchased so far
- If you take ill health retirement or you die in service before age 55 whilst paying for extra 60ths, you would be given the extra 60ths in full
- If you retire for any other reason before age 55, you would be given a proportion of the 60ths being purchased