New pension scheme will reflect the modern and flexible service
Unmarried partners and those in same-sex relationships are to receive pension benefits for the first time under a new police pension scheme announced this month by Police Minister Hazel Blears.
Unmarried partners and those in same-sex relationships are to receive pension benefits for the first time under a new police pension scheme announced this month by Police Minister Hazel Blears.
The New Police Pension Scheme (NPPS) the first major overhaul of police pensions in more than 80 years takes effect on April 6; from that date, all new recruits to the service will become members of the scheme, contributing 9.5 per cent of their pay rather than the current 11 per cent.
The new pension regulations are due to be laid before Parliament shortly, and Ms Blears said the new scheme would be more affordable and flexible to fit modern lifestyles and working patterns.
Pension benefits are key to an officers peace of mind and these new arrangements will ensure that they can carry out their role with confidence, knowing that they and their dependants will be provided for, she said.
The new pension scheme will play an important part in the police modernisation programme. With its more flexible survivor benefits and a rate of pension build-up which does not disadvantage late joiners, the new scheme will make the police service more attractive to a wider range of recruits in terms of lifestyle and age. This will mean a modern service that reflects the diversity in todays society and is better able to respond to the communitys needs.
Members of the current Police Pension Scheme (PPS) will be able to remain so, but will also be offered the choice of transferring to the NPPS later this year.
Other key features of the new scheme include:
A maximum final pension of half final pay plus a lump sum of four times pension (compared with two-thirds final salary and option to exchange part of pension for a lump sum);
New lifelong benefits for surviving spouses, civil partners and nominated unmarried partners;
Even build-up of pension scheme benefits over a career, which gives late joiners a fair deal (compared with the current scheme which has two rates of pension accrual depending on length of service); and
Option to exchange all or part of the lump sum for more annual pension.