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Your options for increasing your pension
As well as making your regular contributions to your police pension, there are ways you can pay more to increase the amount you'll receive in retirement.
Additional Pension is an amount of extra pension that can be bought while you’re in employment. It’s then paid in addition to your scheme benefits when you retire.
You can only buy Additional Pension if you’re an actively contributing member of the Police Pension Scheme 2015 and haven’t reached your normal pension age.
The cost of purchasing Additional Pension depends on:
- your age at the date of your election
- the amount you wish to purchase
- whether you’re paying for your Additional Pension by lump sum or regular contributions
- whether the pension is just for you or for you AND your dependants
Your Additional Pension purchases can cover either:
- an increase in pension for yourself only or;
- an increase in pension for yourself AND the pension payable to your dependants (spouse, partner or dependent children) after your death.
Maximum purchase amounts
The maximum amount is currently £6500 for the Police Pension Scheme 2015.
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.
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 have been an active member of the for a continious period for at least 12 months Police Pension Scheme 2015. You can only make one lump sum payment per year.
Regular contribution deductions Payments receive tax relief through the PAYE system.
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 chose to receive your pension early, your Additional Pension will be reduced as it is being paid earlier.
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 been paying Additional Pension contributions for 12 months and elected to buy benefits for dependants as well, they would receive a pension of 50% of what you would have received. The dependant's pension would be paid in full, even if you haven't completed all the payments, as long as you were in good health when the contract was taken out.
How to apply
When you use our Additional Pension calculator it will create your estimate and produce a printable 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 either make arrangements to collect your lump sum or forward the details to your payroll department so they can start taking deductions.