Adding more to your Police pension

If you’re an active member of one of the Police pension schemes, you have the option to make additional contributions that will increase the benefits you'll get at retirement. The different options offered by each scheme are outlined below.

Police Pension Scheme 2015

If you're an actively contributing member of the Police Pension Scheme 2015, you can buy Additional Pension at any time up to your normal pension age. It’s then paid in addition to your scheme benefits when you retire.

How much does Additional Pension cost?

The cost of purchasing Additional Pension depends on a number of factors including:

  • your age at the date of your election
  • the amount you wish to purchase
  • whether you're buying your Additional Pension with a lump sum or by paying regular contributions
  • whether the pension is just for you or for you AND your dependants.

Cover options

Your Additional Pension purchases can cover either:

  • an increase in pension for yourself only or;
  • an increase in pension for yourself AND any pension payable to your dependants (spouse, partner or dependent children) after your death.

Maximum amount

The maximum amount of Additional Pension you can currently buy is £6500 (subject to increase).

If you choose to take out more than one contract, we’ll take into account the value of all of your contracts to ensure you don’t exceed the maximum allowable amount.

Making payments

You can pay for Additional Pension either by lump sum or by making regular contributions through your salary.

Lump sum payments can only be made if you’ve been an active member of the Police Pension Scheme 2015 for a continuous period of at least 12 months. You can only make one lump sum payment per year. Tax relief on lump sum pension payments can be claimed by contacting HMRC.

Regular contributions can be made through the PAYE system and receive tax relief at source. It’s your responsibility to ensure your employer is deducting the correct amount from your salary. If you identify an error, you should contact them immediately.

Additional Pension and the Annual Allowance

If the growth in your benefits exceeds the Annual Allowance, you may be subject to an Annual Allowance charge. Given the potential tax consequences, you should seek advice from an Independent Financial Advisor if you’re planning to make a lump sum payment to purchase additional pension. Please see HMRC’s website for more information about the Annual Allowance.

Retirement options that affect Additional Pension

There are a number of circumstances that affect the amount of Additional Pension payable to you. If you choose to receive your pension earlier than your normal retirement age, your Additional Pension will be reduced.

If you continue to work beyond your normal pension age, your Additional Pension will be increased to reflect the later than expected payment.

Benefits payable on death

If you've elected to include cover for your dependants within your Additional Pension purchase, they'll become eligible for benefits after 12 months of regular contributions and would receive their full benefit entitlement in the event of your death, even if you haven't completed all the payments, as long as you were in good health when the contract was taken out.

Try our Additional Pension calculator to see how much you would pay

How to apply

The additional pension calculator generates its own application form. If you wish to proceed with a quote please fill in the application form, sign it and return it to SPPA. We’ll then check the figures and forward it through to your payroll department so they can start taking deductions.

New Police Pension Scheme 2006

If you're unable to build up 35 years' service in the Police Pension Scheme 2006 before your normal pension age, you can choose to buy 'Added Years'.

Normally, this involves making a long-term commitment to pay extra contributions either until you retire or leave the scheme. At the outset of your Added Years contract, you can choose the date that you wish the Added Years to become reckonable in calculating your pension. In effect, this will be your planned retirement date – provided it's between your 55th birthday and the compulsory retirement age for your rank.

Your extra contributions are then calculated as a percentage of your pay and, accordingly, increase every time your pay increases as do the benefits provided by the purchase. Your contributions for increased benefits will be deducted from your pay before tax.

If you serve part-time you have a choice of purchasing Added Years on either a full-time or part-time basis and SPPA can provide you with details of the costs and benefits involved in both options.

Any increased benefits you purchase will count when determining the level of your New Police Pension Scheme 2006 pension, whether payable to you or your survivors, but they will not enable you to qualify for any type of award or enhancement to which you would not otherwise be entitled.

If you retire before your planned retirement date, or leave the Police with a deferred pension or a transfer value, you'll be credited with an appropriate proportion of the increased benefits you were purchasing.

If you die or retire on ill-health grounds, you'll be credited with the total Added Years you elected to buy either by lump sum or by regular contributions.

Annual Allowance

If the growth in your benefits exceeds the Annual Allowance limit, you may be subject to a tax charge. Given the potential tax implications, you should seek professional financial advice if you’re planning to make a lump sum payment to purchase Additional Pension. You’ll find more information on the Annual Allowance here.

How to apply

To find out more about the costs and procedures for buying Added Years in the NPPS 2006 scheme, contact SPPA.

Police Pension Scheme 1987

If you're unable to build up 30 years' service in the Police Pension Scheme 1987 before your normal pension age, you can choose to increase your pension provision by buying 'Added Years' - as long as you have at least 2 years service before your voluntary retirement age.

Normally, this involves making a long-term commitment to pay extra contributions either until you retire or leave the scheme. At the outset of your Added Years contract, you can choose the date that you wish the Added Years to become reckonable in calculating your pension. In effect, this will be your planned retirement date which will be your 55th birthday if you're a constable or sergeant or your 60th birthday if you're a rank of inspector or above (voluntary retirement age for your rank). .

If you serve part-time you have a choice of purchasing Added Years on either a full-time or part-time basis and SPPA can provide you with details of the costs and benefits involved in both options.

If you retire before your planned date of retirement, or leave the Police with a deferred pension or with a transfer value, you'll be credited with an appropriate proportion of the increased benefits you were purchasing.

If you die or retire on ill-health grounds, you'll be credited with the total Added Years you elected to buy either by lump sum or by regular contributions.

Annual Allowance

If the growth in your benefits exceeds the Annual Allowance limit, you may be subject to a tax charge. Given the potential tax implications, you should seek professional financial advice if you’re planning to make a lump sum payment to purchase Additional Pension. You’ll find more information on the Annual Allowance here.

How to apply

To find out more about the costs and procedures for buying Added Years in the Police Pension Scheme 1987 scheme, contact SPPA.

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