NEW PENSION SCHEME FOR A MODERN POLICE SERVICE

9 Mar 2006 12:15 PM

Unmarried partners are to receive pension benefits for the first time under a new police pension scheme, Minister for Policing Hazel Blears announced today.

The new benefits, which extend to same-sex partners, form part of the New Police Pension Scheme (NPPS) that takes effect on 6 April. Under the current pension scheme, only spouses are entitled to benefits.

In the first major overhaul of police pensions in over 80 years, the NPPS provides a modernised scheme for a modern police service that reflects the lifestyles and work of today's officers.

Key features of the scheme include:

* All new recruits to the police service from 6 April 2006 onwards will become members of the NPPS;

* Police officers contribute 9.5 per cent of their pay to the scheme (compared with 11 per cent under the current scheme);

* A maximum final pension of half final pay plus a lump sum of four times pension (compared with two-thirds final salary and option to exchange part of pension for a lump sum);

* New option to nominate an unmarried partner - including same sex partner - as pension beneficiary;

* New lifelong benefits for surviving spouses, civil partners and nominated unmarried partners;

* Even build-up of pension scheme benefits over a career, which gives late joiners a fair deal (compared with the current scheme which has two rates of pension accrual depending on length of service); and

* Option to exchange all or part of the lump sum for more annual pension.

Launching the scheme and a Members Guide setting out the new arrangements, Hazel Blears said:

"The current pension scheme has benefited generations of police officers but it is time for a new, more affordable and flexible scheme to fit modern lifestyles and working patterns of officers today.

"Pension benefits are key to an officer's peace of mind and these new arrangements will ensure that they can carry out their role with confidence, knowing that they and their dependants will be provided for.

"The new pension scheme will play an important part in the police modernisation programme. With its more flexible survivor benefits and a rate of pension build-up which does not disadvantage late joiners, the new scheme will make the police service more attractive to a wider range of recruits in terms of lifestyle and age. This will mean a modern service that reflects the diversity in today's society and is better able to respond to the community's needs."

The NPPS takes effect for all new entrants to the police service from 6 April. Officers who are members of the current Police Pension Scheme (PPS) will be able to remain on that scheme, but they will also be offered the choice of transferring to the NPPS later this year.

The new pension regulations will be laid before Parliament shortly.

Notes to Editors

1. The New Police Pension Scheme (NPPS) will take effect on 6 April 2006.

2. Further information on the NPPS and the Members' Guide will be published on the Home Office website at
http://police.homeoffice.gov.uk/human-resources.