Pension Advice

 

Welcome to the pensions page of our website.

Ensuring good engagement with the Government around the police pension schemes is one of the most important areas of work by PFEW because a police pension has always been regarded as a key element of the remuneration of our members.

Below you will find several links to useful resources regarding your current pension, the legacy schemes and the latest updates regarding the work undertaken on the McCloud remedy.

Lincolnshire police uses XPS as their pension administrator. If you have any specific questions in relation to your pension you can contact the administrator via the following contact details:

 

XPS - Lincolnshire Pension Administrator

Call: 0330 0545496

Email: penmail@xpsgroup.com

www.myownpension.co.uk/police-member

 

Police Federation - Pensions Updates 

To read more on what the Federation is doing nationally in respect of ongoing pension matters please click the link below. Topics covered include:

• Remedy
• Immediate Choice Officers
• Contingent Decisions
• Remediable Service Statements (RSS)
• Pension Trap
• Commutation Cap
• Interest On Contributions
• Exit Points
• Compensation Claim

Click here to learn more: Pensions Updates

 

Police Pension Compensation Claims 

In April 2015, a new pension scheme (called PPS 2015) was introduced. As part of the roll out of the new scheme, some members were given ‘protection’ and remained in their legacy scheme for a set period of time after April 2015.
After a legal challenge, the courts determined that these protections were age discriminatory and not fair to all members of the pension scheme i.e. younger members in the scheme were missing out on additional years of benefits from the original pension schemes.
The changes introduced from 1 October 2023 aim to give all members the same choice of benefits for the remedy period (1 April 2015 to 31 March 2022). As part of the decision-making process, or because of choice made,  there may be some loss which may be compensated for.

Please see the appendices below for more information and the application form for submitting a claim

Appendix A - NPCC scheme managers compensation guidance

Appendix B - NPCC member remedy compensation factsheet

Compensation Claim application form 

Any enquiries relating to the compensation claim please email pensionremedy@lincs.police.uk 

 

National Police Chiefs Council (NPCC)

A site created by the NPCC offering useful information and a link to a police retirement calculator.

policepensioninfo.co.uk

 

Government Website Guidance

A collection of information related to the police pension schemes including policy updates, tax charge guidance and more.

Police pension schemes - GOV.UK

  

NPCC Police Pension Changes 2022 Guidance Document

https://www.swpolicepb.co.uk/media/2966/15-member-remedy-comms.pdf

 

Money and Pensions Service

The Money and Pensions Service, sponsored by the Department for Work and Pensions, replaced the Pensions Advisory Service (TPAS) and offers free and impartial pension guidance to members on state, company and personal pensions.

Visit their website here:

Money and Pensions Service (maps.org.uk)

Call their pensions guidance No: 0800 011 3797

 

 

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Some individuals and organisations – often advice charities - offer financial guidance. This is different to financial advice. Guidance provides you with information about the various options available to you, but should not recommend any particular option over another. Financial advice, however, informs you which specific product would best suit your needs.

Guidance services are not regulated by the Financial Conduct Authority (FCA). This means if things go wrong with your financial choice, you may not be able to complain to the Financial Ombudsman Service or Financial Services Compensation Scheme.

Remember always consider seeking financial advice before making decisions that may affect your financial future.

 

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COMPLAINTS: Your Options

A number of complaints have been raised around the performance of XPS and as a Federation we have raised these directly with the Scheme Manger, Chief Constable Paul Gibson. The situation has continued to evolve and CC Gibson said he is determined to support colleagues and keep them up to date with the following statement:

“I know the changes introduced in 2015 and the subsequent fall out from that scheme has been a source of great anxiety for many, causing distress and uncertainty", he said.

“I’m aware of the significant concerns raised by colleagues approaching/going into retirement and want to be clear; your voice has been heard and Lincolnshire Police is here to support you.

“We are working closely with the Police Federation and Superintendents Association to ensure colleagues receive the help they require and up to date information as quickly as possible.

“I intend to meet XPS to discuss the current position and plans for the future, while also communicating the frustration I’ve witnessed while visiting stations across the county.

“I know this has been a long and difficult process, but I am determined to support colleagues across the force and continue to listen.” 

 

What You Can Do

If you are worried or concerned about a forthcoming retirement, and feel you need to escalate the matter, please contact David Watkins (Managing Director) at David.Watkins@XPSGroup.com. or Natalie Bevan (senior client relationship manager ) at natalie.bevan@xpsgroup.com

XPS have assured us they will do their utmost to ensure that you receive a prompt response.

Should you need more information, you can find helpful documents, FAQs and more at the links below on the Force Intranet as well as on this page.

Internal Dispute Resolution Procedure

Section 50 of the Pensions Act 1995 requires all occupational pension schemes to have a formal complaint procedure in place. If you are affected by the current performance of XPS, please take the time to read the Internal Dispute Resolution Procedure Employee’s Guide published on the intranet or you can view it HERE

   

  

Pension Remedy FAQ

  

1987 Scheme Member Guide

2006 Scheme Member Guide

2015 Scheme Member Guide

 

Pensions Calculator

Police Pension McCloud Remedy Calculator

  

www.peninsulapensions.org.uk/members/police/

https://www.lppapensions.co.uk/members/schemes/police-officers-scheme/

Police 

 

Police Pensions Remedy – Contingent Decision Claims 

Lincolnshire Police is now accepting Contingent Decision claims as part of the Police Pensions Remedy project. The following questions and answers have been complied to explain possible claims available to officers and the processes involved in making a claim. Contingent decision claims should be submitted by 31st October 2024.

What is a Contingent Decision?

A Contingent Decision is a decision taken by a member that would have been different had it not been for the discrimination identified by the courts as part of the pensions remedy. The decision will relate to membership of the police pension scheme during the period remedy period (1 April 2015 – 31 March 2022). Members can make a claim for a Contingent Decision this will be assessed by the Force to determine if it can be accepted, this is necessary as each type of Contingent Decision has specific criteria which must be met.

What types of claims can be made?

There are four types of Contingent Decisions for which a claim can be made-

1. Opt-Outs –
2. A member who would not have opted-out if they had been allowed to remain in their Legacy pension scheme beyond their transition date (when they moved to the new CARE scheme), or,

2015. A protected member who had not been allowed to join the 2015 CARE scheme on 1 April 2015.

1. Honoraria – A member who would have chosen an honorarium (non- pensionable payment) if they had remained in their Legacy scheme.

1. Additional Service – A member who would have purchased (more) additional service if they were in the Legacy scheme.

1. Transfers –
2. A Member who would have transferred in service from a previous pension if they were in the Legacy Scheme.

1. A Member who chose to transfer (in or out) and would not have done so if they had remained in the Legacy Scheme

More details on the types of claims that can be made is available on the NPCC contingent decision guidance which can be found by clicking on the following link:

NPCC-Member-Remedy-Factsheet-Contingent-Decisions-v2.0.pdf (policepensioninfo.co.uk)

How do I make a claim?

Members wanting to make a claim should complete the claim form within the link above and email it to pensionremedy@lincs.police.uk. Please note that some evidence will be required to support your claim. This will usually be a short-written statement or in some cases additional evidence may be required.

What is the process and timescales for actioning the claim?

The following process will be followed for the claims –

1)            The claim form is received from the member.

2)            The Force will acknowledge the receipt of your claim (within ten working days). This will include any information about possible delays that could be anticipated.

3)            The Force will review the claim and the supporting evidence and will make a decision based on the guidance provided by the NPCC (within two months of receipt, or by a delayed date notified).

4)            The member will be advised in writing of the outcome of the claim.

What are the next steps once the claim has been approved?

The following process and timescales will be followed once the claim has been approved –

1)            The payroll team is notified of the successful claim (within ten days)

2)            The payroll team will collate all data required to enable the claim to be progressed. Data will be sent to XPS (within one month of notification).

3)            XPS (Pensions administrator will produce a Contingent Decision Remedial Service Statement (CD-RSS) and send to the member within six weeks of receiving the payroll data.

4)            The member makes a decision on whether to proceed with the election based on the following timescales –

1. Honoraria election – three months from receipt of CD-RSS
2. Opted-Out service, Additional Service or Transfers – twelve months from receipt of CD-RSS

How will I repay any monies due to be paid?

There are a variety of ways that the additional contributions owed by a member can be repaid. These will be dependent on the members pension status and the type of decision being made.

Where the pension scheme owes the member monies due to an election then the repayment would be as soon as possible following confirmation of the election from the member.

What can I do if my Contingent Decision claim is declined?

If your claim is declined by the Force then you will be provided with details of how to seek review by the Deputy Chief Constable and/or raise a formal dispute through the Internal Dispute Resolutions Procedure (IDRP).

Can I get any advice on the scheme from within Force?

Please email pensionremedy@lincs.police.uk and they will endeavour to answer any questions you may have.

 

 

Who is eligible for a Lump Sum Death Grant in the PPS 2015?

If you die whilst an active member of the PPS 2015, your ‘survivors’ may be eligible to receive a Lump Sum Death Grant regardless of whether or not any Adult Survivor’s pension is payable.

The grant will be paid to your surviving spouse or civil partner (if you have one) or to a surviving declared partner (at the discretion of your Police Pension Authority). Otherwise, the lump sum death grant will be paid to your personal representative (normally your estate). You may, however, nominate a recipient(s), including an organisation to receive the lump sum death grant, if you leave no spouse or partner. You may also nominate as many people or organisations as you like.

In order to nominate your declared partner, use the link below:

My Own Pension - Police Member - 2015 Scheme - Scheme Guides & Forms

 

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Scheme Sanction Charge & Unauthorised Payment Surcharge            

Scheme Sanction Charge

The Scheme Sanction Charge is a charge related to an unauthorised payment. An unauthorised payment happens when a commutation lump sum is above the Pension Commencement Lump Sum (PCLS) threshold. Unauthorised payments have been happening since 2011 when commutation factors rose and the size of the lump sum increased. 

There is a member charge of 40% of the unauthorised payment, and a 15% charge known as scheme sanction charge, which should be paid by the scheme, but some scheme managers have been passing this charge to the member. 

As background to this issue- 

• In 2010 the commutation factors changed to above 20, that breached the HMRC maximum limit introducing the unauthorised payment charges, and with them the scheme sanction charge. 
• Neither Home Office or HMRC were able to advise scheme managers on how to treat scheme sanction charges and who should pay these. 
• Scheme managers are responsible for managing, administering and governing the scheme. 
• Scheme managers who took the decision to pass the charge to the member should have an audit as to why the charge would be passed to the member, and their reasoning. 
• Since 2021 when a national pension team was established within NPCC, advice has been given on the matter of the scheme sanction charge. 

The charge should not be passed to the member, because the scheme rules do not allow it. The finance act 2004, says in section 239 paragraph 2 that the person liable to the scheme sanction charge is the scheme administrator. To clarify for the purposes of the term ‘scheme administrator’ they mean the scheme manager - Finance Act 2004 (legislation.gov.uk). Therefore, the person liable is the scheme, and the scheme sanction charge is not chargeable to the member if the pension scheme rules do not allow for it, the 1987 regulations have never been amended to allow the scheme to deduct the tax charge from the member. 

Retired officers who paid tax on their commutation should have received information from the Force. In that information it would state if a Scheme Sanction Charge had been applied.  

If an officer chooses the maximum lump sum commutation from the 1987 pension and has not reached 62 years and 2 months, then there is a tax implication as it breaches scheme rules. The HMRC then levy a Scheme Sanction Charge for the breach of scheme rules.  

Lincolnshire Federation has raised this matter locally with Nick Ward from Finance and we have received assurances that the force has never passed on the Sanction Charge.

Unauthorised Payment Surcharge

This is a tax separate to SCC and is deducted from the lump sum only with the agreement from the individual.

  

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Opting out of the Pension Scheme

You are automatically enrolled to the 2015 Scheme on appointment to a police force unless you decide to opt out.

If you opt out of the 2015 Scheme you will be automatically re-enrolled into the 2015 Scheme every 3 years on your automatic re-enrolment date. If you want to remain opted out, you will need to opt out within one month; this will be backdated from the automatic re-enrolment date.

If you are thinking of opting out of the 2015 Scheme or the 1987 Scheme or the 2006 Scheme you are strongly recommended to take independent financial advice before you make a decision.

For further information on opting out and auto enrolment please visit the XPS website here:

2015 Scheme - Leaving the Scheme

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Added Pension Option 

You may opt to make added pension payments in order to increase:

• Your retirement benefits for a period of service; or
• Your retirement benefits and death benefits for a period of service.

If you choose to exercise this option, you will be able to decide whether the added pension payments are to be made by:

• Periodical payments; or
• A lump sum payment

You will only be able to exercise the lump sum option if you have been an Active Member of the 2015 Scheme for a continuous period of at least 12 months and you have been provided with a statement of the amount of added pension.

Please note that you may also use the whole or part of a lump sum which would have been payable to you under the Compensation Scheme as a lump sum payment to buy added pension, but you will need to specify this option to your Police Pension Authority.

You will be able to exercise the added pension option more than once but you can only choose to make a lump sum payment for added pension once in any Scheme Year.

The maximum amount of added pension that can be purchased for any Scheme Year is reviewed annually by HM Treasury.

If you decided to make periodical payments for added pension, the Police Pension Authority may cancel the added pension option if it appears that the added pension limits will be exceeded if you continue to make those periodical payments.

The following link on XPS website offers further information and application forms:

2015 Scheme - Increasing Your Benefits

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