This newsletter provides a general update on current pension issues and some practical tips to assist with your own pension position.

ABS/RSS Update

There was another annual benefit statement round in August and that triggered the three-month window for paying back the contribution adjustment for affected 1987 members. That window has now closed, though some forces have extended it to the end of the year.

2006 legacy members who are owed money due to the contribution adjustment can claim their refund at any point, there is no three-month window stipulation for them.

PFEW continue to press to get remedy done. We share the frustration that there are still thousands of RSSs outstanding despite the 31 March 2025 deadline. Scheme Managers should by now have a grip on how many RSSs are outstanding, why and how and when they intend to rectify the position.

We are also still concerned with the lack of support being provided to ill health retirees and beneficiaries and remind all officers that independent financial advice can be taken and claimed back from the force for remedy issues. We also caution that it would be prudent to get authorisation from the force before spending money on that advice.

If you are an affected member and are being asked to pay interest beyond the statutory deadline (31/3/2025) and want to pay the contribution adjustment off in full we would suggest asking the Scheme Manager to waive that extra interest.

The guidance for members with pension sharing orders due to divorce has been published and administrators will now start to deal with those cases which were on hold awaiting the guidance. Any extra-legal costs incurred as a result of changes upon receipt of the RSS can be claimed from the force via their compensation process.

PFEW’s advice is to continue to pursue the internal dispute resolution procedure (IDRP) route and to complain to scheme managers. If that is not providing a satisfactory outcome then move on to the Pension Ombudsman.

There was a section in the July 2025 newsletter regarding understanding your RSS and that is available on the PFEW Pension pages.

The Budget and wider Government Policy

The speculation before this year’s budget was unprecedented. The Staff Associations wrote to the Chancellor to lobby against making any changes to the tax on commutation. No changes were made which was good news, but it is likely that the rumours will circulate again next year which is unhelpful.

PFEW also responded to a consultation regarding death in service payments. There had been a suggestion that these death in service payments would be treated as an inheritance, and therefore subject to inheritance tax, which we were strongly against. We are happy to report that the result of the consultation is that any death in service payments will remain exempt from inheritance tax.

There has been a lot of talk around “fiscal drag” due to the continued freezing of the personal tax thresholds. It is worth reminding members that pensions are tax efficient and making added pension contributions to the police pension or to a private pension can be a tax-efficient strategy. Independent financial advice would be prudent before doing so.

The budget also saw changes to pension salary sacrifice arrangements from 2029. This does not affect police pension contributions as they are not deducted via salary sacrifice.

We also often get asked about the change in the Pension Freedom Age in 2028 when it will rise to 57. This will not apply to the police pension and all of the exit points for the police schemes will remain as they are now.

Compensation

Forces should have published their guidance for how members can claim compensation for losses and advice required as a result of the remedy. The guidance should explain how compensation can be applied for and the appeals process if the application is unsuccessful.

The NPCC has published a useful guide to compensation.

> Click here to read

It is clear from some work conducted by PFEW that some forces have not publicised their process or the compensation available. There is no financial limit for reasonable claims and no time limit on when claims can be made.

From a practical point of view members may wish to get pre-authorisation from their Force before spending money on advice. Any issues in this area please speak with your local Branch Board in the first instance.

Contingent Decisions – buying back opted out service

There has been a pause on two of the three cohorts for buying back opted out service in the 1987 scheme. The three cohorts are:

- Those that opted out on or before 31 March 2015 – can only be returned to the 2006 scheme;

- Those that opted out on or after 1 April 2015 and did not opt back into the scheme on or before 31 March 2022 – can be returned to the 1987 scheme;
- Those that opted out on or after 1 April 2015 but opted back in within the remedy period – opted out service can be the 1987 scheme, the period from opting back in to 31 March 2022 is the 2006 scheme.

There is nothing stopping the middle cohort being dealt with by forces now.

There has been a pause on dealing with the other two cohorts since August 2024 as the Home Office look for a solution as the legislation is not in line with the policy intent of returning officers to the position they would have been but for remedy.

PFEW has been involved in meetings with the Home Office where a compensation framework to deal with the issue has been discussed. The proposals are now with the policing minister for a decision, which we were promised by the end of the year but have been told today (18 December) that it will not be with us until January 2026.

The Home Office has stated once a decision is made, they will open up the scheme to all officers who opted out due to remedy, which we welcome.

Notwithstanding that, if you are a member who wants to buy back opted out service get your contingent decision in so that it is registered.

PFEW are concerned for those officers who are awaiting a decision because they could retire and anyone in that situation is an urgent case which should be communicated by their force to the NPCC. Any financial losses that are being incurred as a result of the continued pause should be claimed back from the force via the compensation process.

PFEW’s policy position has always been that the legislation should be changed to meet the policy intent of putting officers back in the position they would have been but for remedy.
Contingent Decisions – the other three available

The window has closed or is closing for the other three contingent decisions available.
Honoraria, additional service and transfers needed to be in three months, 12 months and six months, respectively, after the receipt of the RSS.

> The NPCC guidance on all of the contingent decisions is in the link here

If you want to make an application then please get it in as soon as possible. If your RSS was delayed or there was an issue with it then you may still be in time or you could ask your force for some leeway due to the issues with remedy.

DWP – Check Your State Pension

Police officers were contracted out of the second state pension (SERPs) until April 2016. This means that they may not have a full National Insurance record for the state pension. It is well worth creating an account and checking your position so that you know the position well before you reach state pension age.

> Check your State Pension forecast here

Parental Leave

PFEW has asked the Scheme Advisory Board to consider changing the notice period for asking to buy back the pension for unpaid parental leave to six months, it is currently three months. We have also pressed for better communication of the provisions from forces so that more members are made aware of the option to buy back pension.

County inspectors and above
County inspectors and above have a different compulsory retirement date than Met inspectors and above and all PCs and sergeants and it affects how they can claim the 1987 pension and commutation in some circumstances. We have traced this difference back to the Second World War.

This is a historical issue in any event as in 2006 the compulsory retirement age for all was moved to 60, but the pre-2006 CRDs were maintained for some pension purposes. There is no compulsory retirement age in the 2015 police scheme.

It means that they cannot take the 1987 pension with any service at 55, for them it would be 60. They also do not get access to the full commutation factors at 55 with over 25 years’ service, again that would be at 60 for them.

The provision is moot if they reach 30 years’ service across the schemes as they can retire at that point at any age with the full commutation factors available to them.

We have asked the Scheme Advisory Board to consider changing this and they have asked the Home Office to look into the matter.

Webinars

PFEW has produced a number of Webinars and intend to run more in the new year. All of the webinars are available to view on the PFEW YouTube channel and there are links on our website.

> Watch our pension webinars on demand

The NPCC has published a podcast that covers various aspects of the police pension and that can be found on their website which is within the Useful Links section of the newsletter below.

Useful Links

> PFEW Pension Website

> NPCC Website - lots of useful information and guidance, including compensation guidance, the News section is also updated regularly.

Have a look at the website, webinars and the newsletters and if there is anything else you would like covered, please e-mail us at PensionEnquiries@polfed.org.