OFFICERS have been unable to seek timely financial advice about the upcoming new pension scheme because the government is \u201cdragging its heels\u201d on the issue.<\/p>\n
The new career average salary (CARE) scheme is scheduled to begin on 1 April, yet officers still do not know the \u201cnuts and bolts\u201d of how it is going to work, said Mark Smith, Chairman of Essex Police Federation.<\/p>\n
\u201cWe keep telling members that they need independent financial advice, because we cannot offer that, but without information from the government they cannot go to a financial adviser to see if they should stay in the scheme or not,\u201d says Mr Smith.<\/p>\n
\u201cThe government was very quick to bring out new legislation about conduct regulations but they seem to be dragging their heels on pensions.\u00a0We all know why they changed it: to save money. But perhaps it is something that might have been better placed in a box marked \u2018too difficult\u2019 because they don\u2019t seem to be pulling their finger out.\u201d<\/p>\n
The Home Office released an update on New Year\u2019s Eve, which indicated that the majority of officers will pay slightly less than expected in pension contributions from April.<\/p>\n
Those on Tier 2, on a basic annual salary of more than \u00a327,000 but less than \u00a360,000, on the new career average salary scheme will be paying 13.44 per cent of their salaries into their pensions \u2013 lower than the 13.7 per cent that had been anticipated. However, the contribution is believed to rise to 13.7 per cent after 2019.<\/p>\n
Tier 1 officers, on a basic annual salary of below \u00a327,000, will pay 12.44 per cent, while Tier 3 officers, who earn more than \u00a360,000, will pay 13.78 per cent.<\/p>\n
Officers who are under the protected final salary scheme or the tapered scheme were not affected by the update.<\/p>\n
The new CARE scheme will replace the final salary scheme and a new pension age of 60 will be introduced.<\/p>\n
However, there will be no change in pension age or amount for those who on 1 April 2012 were aged 45 or over, or aged 38 or over and members of the 1987 police pension scheme with 10 years or less to go before retirement with a maximum 30-year pension.<\/p>\n
The Federation has said it will let members know as soon as it receives any further information.<\/p>\n","protected":false},"excerpt":{"rendered":"
OFFICERS have been unable to seek timely financial advice about the upcoming new pension scheme because the government is \u201cdragging its heels\u201d on the issue. The new career average salary\u2026 read more →<\/a><\/p>\n","protected":false},"author":1,"featured_media":1119,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1699"}],"collection":[{"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1699"}],"version-history":[{"count":2,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1699\/revisions"}],"predecessor-version":[{"id":1742,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1699\/revisions\/1742"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=\/wp\/v2\/media\/1119"}],"wp:attachment":[{"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essexfedfocus.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}