Senior officers could pay extra £2,800 towards pensions

The police pension scheme remains very attractive compared with pension provisions available in the private sector, according to the Home Secretary, despite senior officers facing paying up to £2,800 extra a year in pension contributions.

Theresa May said in a letter addressed to the Police Federation of England and Wales (PFEW) that there needs to be a fairer balance between what employees pay and what other taxpayers contribute towards a public service pension.

The Government announced in the Comprehensive Spending Review last year that savings of £2.8 billion would need to be made by the public sector, resulting in higher pension contributions by police officers.

Increases varying between 1.5 and four per cent are now expected by 2015 depending on an officer’s salary and pension scheme – either the discontinued 1987 police pension scheme or the current scheme, which began five years ago.

The increases will mean that rank and file officers can expect annual rises in contributions of £349 for a new constable to £1,169 for a senior PC, while the average sergeant can expect an additional annual payment of £1,249. For an inspector this would mean an additional contribution of £1,582.

However, senior officers earning more than £60,000 would face the biggest increase – an additional £2,800 a year with their contributions rising from 11 to 15 per cent.

Mrs May said: “Following the commitments made by the Government in the Spending Review, public service pension schemes are designing and consulting on proposals to deliver the relevant share of the £2.8 billion savings required by 2014-15.

“The expectation is for the savings to be made gradually increasing member contribution rates over a three year period to 2014-15.”

The PFEW said it will respond to the Government’s decision in due course.