Police Pension advice

dodgiedave

I am currently in the 1987 PPS and have 12.5 years service to date. I am aware of the changes taking place in 2015 and know the best thing to do will be to stay in the new Police pension scheme.

However I am due to retire after 30 years service when I am 52 years old and want to still retire at this age. On the new scheme I will be required to work until I am 60 or I can take a reduced pension at 55 still working an extra 3 years.

My question is,

If I still choose to retire at 52 what are my best options with regards to the pension, If I withdraw from the new scheme as i do not want to work in the Police over 52 can I still draw my old pension at 52? Or will I become deferred and not get anything until I am 60?

My ideal plan would be to stop paying into the scheme when it changes in 2015. Draw my 15 years of 1987 pension scheme at 52 and re invest my contributions elsewhere. I know the new scheme would still be better than anything else. It is however the fact that I am not willing to work in the Police for an extra 8 years that is forcing me to consider leaving the scheme.

Devon_Sailor

Dave,

If it is anything like other Public Sector pensions, it is not a case of one or the other. You would be allowed to retire at any point you like (therefore avoiding the 8 extra years that you dont want to work with the Police); all that will happen is that your pension will be based upon the years accrued to that point, not the "full" whack if you had served until 60.

It may well be the case that there are restrictions on when you can start to draw it (for example, Im in the Armed Forces scheme - I can take my "old" AFPS05 pension and benefits at the normal age for that scheme, for however many years I had accrued under it. I will not be able to draw my AFPS15 pension years until the retirement age for THAT pension).

If you are still going to work in the Police until you are 52, it would seem daft to stop paying into the new scheme (which you rightly recognise is still a good one), rather than build up 15 years of decent size pot which you can draw upon later. You wont get as much as if you had a "full" pension by working until 60, but it would be much better than investing your contributions elsewhere?

Regards

D_S

dodgiedave

So they would run as 2 seperatly? ie the 15 years on the old scheme I should still be able to draw at 52 in full (15 years worth). The amount on the new scheme would pay a reduced amount as I would be leaving early?

And if I leave the new scheme can I still draw the old one at 52? Or do I become a deffered member having to wait until 60?

Hope that makes sense?

ShootForTheMoon

Will watch this thread with interest - I've asked a similar question about the need for 'extra' investment alongside my Police pension in another thread, as I simply don't trust the Govt. not to change it again in the next 30 years!

I am in a slightly different position to the OP, as I am in the 'new scheme' (ie. 35 years service 13% contributions) so would be due to retire at 56...
I currently have 4 years service, so it's a long way off for me, but no harm in planning ahead!!

If you have a look at the last page of "Age vs Pension Pot" thread, I got some very helpful advice from some lovely people on there!

atush

Yes, it is my understanding the pensions operate sperately from each other.

But as Shoot says, we advise those looking to retire early (and 52 is very early) to invest in S&S isas alongside of pensions (or even PPs if retiring at 55 or above). As this money can be used to boost your income until the newer pension comes online at 60.

Any time someone wants to retire early, they need a way to Fund the gap years between leaving work and getting a FS or other pension. Another way to do this is by part time work in another field. I would imagine there is a lot of demand for ex police officers.

quotememiserable

Hmm. Although they're calculated separately, I wouldn't expect them to be regarded as independant schemes so that you could claim off one and keep the other running; rather as one scheme. I'd suggest you just ask your pensions people.

dodgiedave

I am not much clearer really.

I am not retiring early as I was always meant to do 30 years service making me 52. This is the norm in the Police. It is purely the NEW pension scheme that would change my age of retirement. I am not looking to stop work at 52 just think 30 years in the Police is enough and 30 years has always been classed as full service in the Police.

My question is,

I am currently paying into the Police Pension Scheme 1987. This is due to end in 2015 and we are being moved to a new scheme. If the old scheme did not go I would retire at 52 (30 years service) and that would have given me a FULL pension with no reductions.

As the old scheme ends and the new one begins will my retirement age of 52 still be honoured under the old system? ie I will have half of my full pension under the old system that should be paid at 52. I know the answer to this is YES if I stay on the NEW scheme I would then have to wait until 60 for the other half (new scheme) or take a reduced amount if I retire earlier than 60.

BUT if I am NOT in the new scheme as I opt out. Can I still get my old 15 years worth at 52 in full? Or would I be classed as deferred full stop and not get anything until I'm 60?

It's kind of hard to be clear but hopefully the above explains things?

atush

I am not retiring early as I was always meant to do 30 years service making me 52. This is the norm in the Police.

But it is no longer the 'Norm', so you have to take that into acct. Just like you have to take into acct changes in law in your work.

You need to call them and find out if you can retire at 52 as before, and wait til 60 for the other half of your pension.

Otherwise, you'll have to save even harder to take retiremet at 52, as you would have to either fund 8 years, or take your second pension reduced by 8 years (which could be 40% reduced or more).

You need to consult your scheme booklet, write the administrators or call and ask them

rpc

atush wrote: »

Otherwise, you'll have to save even harder to take retiremet at 52, as you would have to either fund 8 years, or take your second pension reduced by 8 years (which could be 40% reduced or more).

Minimum retirement age in the 2015 scheme is 55. OP really needs to speak to the administrators who will know the answers.

It sounds like you can take the pensions separately (at age 52 for the existing one), but I wouldn't be sure unless I had a nice letter from the administrators! https://www.gov.uk/police-pension-reform

Happychappy

Dave have you rang your Hr department, I don't know which force your in, but most forces hold a pre retirement course over two days where they bring in experts from various bodies to discuss areas such as the pension issue, and nearly everything revolves around this area, it may be that your force is holding a pre retirement course soon, we have one in two weeks, always worth dropping in on at the start of the day or lunch time to speak to one of the advisers directly, failing that, speak to the fed and get a contact number of the pension advisors such as Mouchell who deal with around 10 or 15 force pensions?

Sorry it's not an immediate answer, but it was the way I did it ?

Have you seen the various comparison charts ?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/117685/worked-examples.pdf

There is also a calculator to look at your own circumstances

ShootForTheMoon

In fairness to the OP it is notoriously difficult to obtain any information at the moment as we don't have "administrators" as such, and each force is responsible for its own pensions, it's not one big UK pot as you might expect - at least that's how I understand it...!

When I eventually spoke to someone in HR who had a vague idea - they were so uncertain of what the changes would actually mean for us officers it made me even more determined to save alongside my pension for retirement!!

My understanding is that we now have to work to 60 regardless of which scheme we're on, and if you wish to retire at the original age promised its down to you to fund that gap. For me, this is still 30 years away, so plently of time to implement my own strategies - but people in OP's position got a much rougher deal as the old scheme was so generous.

Atush is right about the demand for ex-police in other sectors, but after 35 years of a physically and emotionally draining job, I'm sure I wont want to start over in a new job!!

Anyway, Dave, best of luck in finding out about the scheme!! Have you tried the Fed?? If you get any solid answers, please post away as I'm sure we're not the only ones looking for advice!!!! X