Retiring Soon? PPS 1987 Commutation Factors Improved - Read this!

29 November 2018

POLICE PENSION SCHEME (PPS) 1987 – REVISED COMMUTATION FACTORS FROM 31 OCTOBER 2018

Are you due to retire or retired since 31st October 2018 and a member of the 1987 Police Pension Scheme (PPS), if so please read this important update on commutation factors below;

As it is required to do when necessary under the governing regulations of the scheme, the Government Actuary’s Department has updated the commutation factors applicable under the PPS 1987.  The primary driving force behind the need to do this has been the change in the SCAPE discount rate. SCAPE stands for Superannuation Contributions Adjusted for Past Expenses. This discount rate is used to assess the current cost of future payments to members from the scheme and is designed to maintain the financial sustainability of those promised benefits. 
 
Please note that in all instances the commutation factors have improved, so this will mean an increase in the lump sum payable to members for each £1 of their pension that they choose to commute. The size of the change varies according to the age at which the member chooses to take his or her benefits. In no instance is the increase in lump sum greater than £1.60 more for each £1 of pension commuted, and in many instances the improvement is smaller. 
 
The new factors are applicable with effect from 31 October 2018 and therefore should already be in use. However, it may be worth checking that this change with the pension administrator that the new factors have been applied.

Kier Pensions now XPS Administration can be contacted via the details below:

Post : XPS Administration
PO Box 485
Middlesbrough
TS1 9EE.

Telephone : (01642) 727333