Human Resources
Back to 2006 Police Pension Scheme (NPPS)
Retirement and Benefits
NPPS is a 'final salary' pension scheme that calculates benefits according to final pensionable pay and the length of pensionable service. Presented below is an outline of the main benefits as well as the concepts of 'pensionable pay', 'pensionable service' and 'deferred pensions'.
The main benefits of the 2006 police pension scheme are:
- A pension for life, based on your final pensionable pay and pensionable service (see below), plus a tax-free lump sum of four times’ the initial annual pension.
- The final pension is based on 1/70 of each year of your pensionable service up to a maximum of 35 years or 35/70ths. This method is sometimes referred to as a single accrual rate.
- The maximum pension is half pay.
- All or part of the lump sum may be exchanged for additional pension for you only (but not in the case of an ill-health pension). Based on the current conversion scale, this would provide a total pension of up to 66% of final pensionable pay for men officers and up to 64% of that pay for women officers.
- A lump sum death grant is payable if you are not opted out of the pension scheme when you die. It is three times your annual pay and is paid to your spouse, civil partner or unmarried partner (if you have one) or to someone nominated by you, or otherwise to your estate.
You can retire and receive an immediate pension (and lump sum) at 55. The deferred pension age is 65.
Pensionable service
NPPS calculates benefits as a proportion of final 'pensionable pay' (usually pay in your last year of service as a member of the scheme) depending on length of service (known as 'pensionable service'). Service which counts for this purpose includes:
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Your current service a a regular police officer during which you have paid pension contributions or for which you are deemed to have been paid (e.g. any unpaid period in the first 26 weeks of maternity leave).
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Earlier service in the same force, or in other police forces if you transferred to your present force from another force (again provided that you paid pension contributions in your earlier service and that these have not been refunded to you).
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Earlier service with a Scottish force or the Police Service of Northern Ireland, if you transferred with consent and you paid pension contributions which have not been refunded to you.
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Periods of ‘relevant service’ under Section 97 of the Police Act 1996 (this includes appointments to the Inspectorate of Constabulary and certain types of overseas service) during which you have paid pension contributions. (officers contemplating overseas service are recommended to seek advice on the pension position before agreeing to undertake it).
Part-time service counts as pensionable service on a pro-rata basis. Illustrations are given in Examples 2 and 4 of the NPPS Members’ Guide.
Deferred Pension
You are entitled to a deferred pension if you are under 55 and have at two years to count towards qualifying service, and you either:
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leave the police, or
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cease to be a member of NPPS by opting out of it,
without transferring your NPPS rights to another pension scheme.
The deferred pension will be based on your actual pensionable service and your final pensionable pay at the date on which you left the police or opted out. It will be increased for inflation form the time that you leave the force or opt out of NPPS up to the date at which your benefits become payable (under Pensions Increase Act legislation).
If you leave the service or opt out of NPPS before age 55 then you can only be entitled to a deferred pension, regardless of how many years of pensionable service you have.
