Police officer pension contribution rises tabled

THE country’s cops look set to take another financial hit with news that the Home Office wants pension contribution rises to 13.5% and 11.5% from 1 April.

The majority of English and Welsh officers – on the 30 year pension scheme (PPS) – face a 1.25% rise to their monthly contributions – up to 13.5%.

If police officers are on the newer 35 year scheme (NPPS), they face a 1% increase to a contribution rate of 11.5%.

Mark Smith, chairman of Essex Police Federation, said – even though it is a consultation – he fully expected the changes to happen.

He said: “It is going to go up. I don’t think it is right. We pay the highest contributions within the public sector.

“At the same time they are about to change the pension so we have to work longer – for less – and still make the same contributions and that can’t be right. I am a strong believer of you get the pension that you sign up for.”

Mr Smith urged any Essex Police officers who are unsure of what to do with their police pension to seek independent financial advice.

“It may not be the news that people want to hear – and I do not agree with the changes – but it remains the best pension out there,” added Mr Smith.

In July 2011, the Home Secretary Theresa May consulted the Police Negotiating Board (PNB) on her proposals to increase the amount paid by police officers into the police pension scheme (PPS) and new police pension scheme (NPPS) by an average of 3.2 % over a three year-period beginning in April 2012.

Following representations by the Police Federation of England and Wales and Staff Side, the Home Secretary decided only to implement the proposed increase for the year 2012-13, with contribution rates for most officers rising by 1.25% for those in the PPS and by 1% for those in the NPPS.

In making this decision, the Home Secretary did state that the Government was still committed to increasing police officers’ pension contributions in the following two years, but that she would consult the PNB on any further increases.

Police Minister Hon Damian Green wrote to the Independent Chair of the PNB asking the Board to consider an increase in contribution rates for 2013-14, which would take effect from 1 April 2013.

For the majority of police officers in the Federated Ranks, the proposals would result in the following contribution rates:

• Members of the Police Pension Scheme – 13.5%

• Members of the New Police Pension Scheme – 11.5%

The consultation on these increases will close on 20 February. The Police Federation of England and Wales stated it “will work with Staff Side colleagues to formulate a response to these proposals.”

More info here

http://polfed.org/mediacenter/94B0105AA2124BBD810B44E1F22D22F1.asp