Police Pension Scheme 1987
This scheme is not open to new recruits. If you are a new recruit, you may join the New Police Pension Scheme 2006 instead.
Police Pension Scheme 1987
The Police Pension Scheme 1987 (PPS) is an unfunded, occupational pension scheme. It is a national scheme with individual police authorities responsible for its administration. Unless you have opted out, you will be a member of this scheme if you joined the force before 6 April 2006.
- Pension based on service and final pay, to a maximum of 40/60 of your final pay
Pension worth 1/60 of your final pay for each year of service up to 20 years, and 2/60 for the following 10 years
- periods of part-time service are scaled down. If you are a part-time PC or sergeant, flat-rate overtime counts towards service
- part-time pay is scaled up to the whole-time equivalent
- The option to convert some of your pension to a retirement lump sum
- The option to buy extra pension called added sixtieths, within the over all limit of 40/60ths
Ill health and injury pensions
- Pension and lump sum paid immediately if you become ill or disabled
- An injury component if you are retired on ill health grounds having been injured whilst on duty
- An enhanced pension if you have 5 years or more service
If you die the following death benefits may be payable:
- A pension for your husband, wife or civil partner – paid for life unless they remarry, enter into a civil partnership or cohabit
- Pensions for eligible children, including legitimate or adopted children
- A death grant worth two times your pay if you die in service, paid to your husband, wife or civil partner
Officer contribution rates in the Police Pension Scheme 1987 (PPS).
Basic annual salary
1 April 2012 to 31 March 2013
1 April 2013 to 31 March 2014
Above £27,000, below £60,000
£60,000 and over
Changes to my circumstances
Hampshire Constabulary will update Pensions Services if your employment changes.
Please tell Hampshire Constabulary if
- You change your name or address
- You marry or enter into a civil partnership
- You divorce or your civil partnership is dissolved
- The purchase of extra benefits does not allow you to retire earlier or to qualify for a benefit to which you would not otherwise be entitled.
- Due to HMRC limits, you can only pay an additional contribution of 4% on top of the amount you already pay.
- The cost of purchasing extra 60ths increases as your salary increases.
- The cost of purchasing additional 60ths is based on your age on your birthday following your election.
- Payment of additional contributions would commence on your birthday following your election.
- Additional contributions would be payable up to the day before your compulsory retirement date, age 55.
- Additional contributions attract tax relief in the same way as normal pension contributions.
- If you are promoted to a rank where the compulsory retirement age is 60, and you can then attain 30 years reckonable service, you will have purchased the extra 60ths for nothing, unless you retired on ill health grounds (or died in service).
- The Police Authority can require you to undergo a medical examination at your own expense.
- If, after electing to buy extra benefits you have any absence without pay, the additional contributions would still have to be paid as if you were still receiving pay.
Extra 60ths in excess of the 15% limit
- To buy extra 60ths in excess of the 15% contribution limit , you can pay by a capitalised lump sum, payment of which is due on your birthday following the date of your election. You cannot use this method to pay for extra 60ths, which could be paid for within the 4% additional contribution level.
- The cost of purchasing by the capitalised lump sum method will change if you have a birthday, or your pay increases, between now and making your election.
Ceasing a contract for extra 60ths early
- Once you have entered into a contract to purchase extra 60ths by the additional contribution method, you can only stop paying on application to the Police Authority on the grounds of hardship. If the Police Authority are satisfied that financial hardship would ensue, they may consent to the discontinuance of the additional contributions for such period as they think fit, and only a proportion of the extra benefits being purchased would then count.
- Once one additional contribution payment has been made (and so long as additional contributions have not been discontinued on the grounds of hardship), you would be given the extra 60ths in full if you retired through ill health, (or if you died in service) before your 55th birthday. If you retire for any other reason before age 55, you would be given a proportion of the 60ths being purchased.
Annual allowance (AA)
The annual allowance limits how much your pensions savings can increase in a year before you have to pay tax on them. It is set by HM Revenue and Customs. The year is called the pension input period, it runs from 1 April to 31 March and roughly corresponds with the tax year. Increases in the value of pension savings are called deemed contributions.
If your total deemed contributions in a year exceed the annual allowance you must pay a tax charge on the excess. Current annual allowances are:
2012/2013 - £50,000
2013/2014 - £50,000
2014/2015 - £40,000
You are more likely to exceed the annual allowance if:
- you’re on a high salary
- a pay rise increases your pension savings
- you retire due to ill health with an enhanced pension
Enhanced Protection does not protect you against having to pay an annual allowance charge
But the annual allowance will not apply:
- in the year of death.
- possibly to some ill-health retirements, the government has yet to decide.
Your annual benefit statement will show your deemed contributions for your police pension. For information about annual allowance used before April 2012, please contact us.
This table shows how the increase in your benefits over the year (deemed contributions) are worked out:
Type of scheme
Police pensions and other defined benefit schemes
The amount by which your annual pension has increased in a year is multiplied by 16, then added to the increase in any automatic retirement lump sum (NPPS only).
Pension benefits from the start of the year are re-valued to reflect inflation. For allowances from before April 2011 use an allowance of £50,000 and multiply increases in pension by 16.
Defined contribution schemes
The actual amount of contributions made
To see if you have exceeded the annual allowance, add together your deemed contributions for all pension schemes to which you have contributed in the year to see if the total exceeds the annual allowance.
- You can include unused allowances from the previous three years with the year you are checking.
- Only increases in benefits from pensions to which you have contributed during the year count towards your annual allowance.
If you exceed the annual allowance after carrying forward unused annual allowance from the previous three years, you will have to pay income tax on the excess. You should report it on your self assessment tax return and pay the charge by the deadline. HMRC can tell you how to do this. You may elect for your pension scheme to pay some or all of the charge and in return your pension benefits would be reduced.
Leaving the Police Pension Scheme
- If you leave service before your pension is payable, your pension will become deferred. There is information about deferred pensions in the previous member part of our website.
You can stop paying pension contributions at any time – this is known as opting out. You can opt in again to become a member of the New Police Pension Scheme, but you will not be able to rejoin if you opt out a second time.
- If you opt out of the Police Pension Scheme you cannot rejoin it. You may choose to opt into the New Police Pension Scheme instead.
- You may have to have a medical at your own expense if you wish to opt into the New Police Pension Scheme.
- After 30 years’ service in the Police Pension Scheme you will not build up any more pensionable service.
- Pension will be based on salary when you opted out, not taking into account future promotions or pay rises.
- You will be taxed on the extra income you receive.
- You will pay higher National Insurance as not in a contracted-out scheme.
- Your next of kin will not receive a death grant lump sum if you die in service.
Your pension will be paid to you if you meet any of the following conditions when you leave service:
- You have at least 30 years’ service
- You are age 50 with 25 years’ or more service
- Depending on your rank, you may receive a short service pension if are age 55 or over with more than two and less than 25 years’ service
- Hampshire Constabulary is retiring you on grounds of ill health and has told you that you will receive your pension
You can choose to give up some of your yearly pension to provide a retirement lump sum. Please see the tab about commutation.
How do I claim my pension?
You must inform Hampshire Constabulary if you decide to retire. Hampshire Constabulary will give you a form to complete. Pensions Services will write to tell you the amount of your pension and any lump sum.
·If you are being retired due to ill health, Hampshire Constabulary will arrange a medical examination for you.
·If your deferred pension is due to be paid, please write to Pensions Services rather than contact Hampshire Constabulary.
How long will it take to pay my pension?
Once we have your form and the other information we need, it will take four weeks to calculate your benefits and pay any lump sum.
- The lump sum cannot be paid until your retirement date, even if it is calculated sooner.
- Once we have paid the lump sum, it will take your bank or building society up to four days (Monday to Friday) to process it and for the money to be available to you.
- If you paid additional voluntary contributions (AVCs) we will request information from the provider to send to you - unfortunately the provider will not deal with you directly. Your AVC benefits will be paid by the provider and will not form part of your police pension.
Can I have a pension estimate?
If you are thinking about retiring from service in the next year or two and would like an estimate of your pension benefits, please contact Hampshire Constabulary. Once we receive the information we need, we will process your estimate within three weeks.
- If you would like an estimate because you are retiring due to ill health or efficiency please contact Hampshire Constabulary.
- If your deferred pension is due for payment, please write to Pensions Services.
Can I exchange some pension so that I will have a retirement lump sum?
You can if you are in the Police Pension Scheme 1987. If you are in the New Police Pension Scheme 2006, you will automatically receive a tax-free lump sum worth four times your yearly pension.
If you are a member of the Police Pension Scheme 1987, you can give up part of the following pensions to receive a retirement lump sum:
- ordinary pension
- short service pension
- ill health pension
- deferred pension
You cannot give up any part of an injury pension.
How much pension can I commute to lump sum?
Within limits, you can choose to commute up to ¼ of your pension. The amount of lump sum you will receive depends on how much pension you commute and how old you are. Usually, the younger you are when your pension is paid, the bigger any lump sum from commutation will be.
For commutation, pension means the amount before any reductions that apply to it. If you leave voluntarily before you have 30 years’ service in the Police Pension Scheme 1987, you cannot commute as much pension to lump sum.
Will I have to pay tax on my retirement lump sum?
Possibly. The Government Actuaries Department (GAD) sets commutation factors for all ages. These factors are used to calculate the retirement lump sum if an officer chooses to commute some of their yearly pension when they retire.
Some officers may have to pay tax on part of any retirement lump sum. This is because some of the commutation factors are higher than 20:1 which means that the commuted lump sum may exceed the maximum allowed by HMRC, which is currently 25% of the total value of benefits.
If the commuted lump sum exceeds the HMRC limit of 25%, the amount of the lump sum in excess of that limit will be subject to a 55% tax charge.
If you are retiring and this applies to you, you are encouraged to seek independent financial advice before making a decision about commutation. Pensions Services will notify you of any tax that you may have to pay on your retirement lump sum.
Membership form 69kb
Election to join or rejoin the pension scheme 63kb to join the NPPS only
Retirement declaration 155kb
Transfer booklet 125kb