Correspondence

Circular 003/2014: increased police officer pension contributions 2014 to 2015

This circular publishes the Home Secretary’s decision to increase police pension contributions payable by police officers, with effect from 1 April 2014.

Detail

  • broad subject: police service
  • sub category: police pensions
  • issue date: 3 March 2014
  • implementation date: 3 March 2014
  • from: Crime and Policing Group, Policing Directorate, Police Pension Team
  • for more information contact: 020 7035 6959
  • addressed to: chief officers and police and crime commissioners

This circular publishes the Home Secretary’s decision to increase police pension contributions payable by police officers, with effect from 1 April 2014. This concerns contributions made under the Police Pension Regulations 1987 and the Police Pension Regulations 2006.

Further to increases implemented in April 2012 and April 2013, and following further consultation with the Police Negotiating Board, there will be implemented an increase in employee contributions, the details of which can be found in Annex A (table showing the increase in police officer contributions for tiers 1,2 and 3).

The relevant regulations will be amended, subject to the relevant parliamentary procedure, in order that the changes take effect from 1 April 2014.

For officers who pay reduced contributions owing to exclusion from ill-health provisions of either the 1987 or 2006 schemes the contribution rate will remain 3.5% less than the ‘full’ rates outlined at Annex A.

You can find full details of the changes to contribution rates and regulations which bring these into effect on www.legislation.gov.uk.

Please bring this notice to the attention of the relevant police pension administrators to ensure that the necessary arrangements are in place for the correct contributions to be deducted from members of the schemes, as appropriate and in line with the revised contribution rates, once the relevant regulations have come into effect.

Please note that the employer contribution rate does not change as a result of this notice or these intended regulation amendments.

NOTE

You should ensure that all members who are affected by this change are notified individually in writing in order to meet obligations under the Occupational Pension Scheme (Disclosure of Information) Regulations 1996.

More details are in Annex B (notification of obligations pursuant to the Occupational Pension Schemes (Disclosure of Information) Regulations 1996).

You may wish to use wording as follows in your notification:

‘This is to inform you of an increase in the contribution rate to your pension which is effective from 1 April 2014. The increase will depend on which scheme you are in, and on your basic annual salary, and will be as set out in the table below. Your employer will continue to pay a rate of 24.2% on your behalf.’