Dear Customer,

In late May 2026 PFEW were provided with details of further potential actuarial changes to the police pension schemes, these were published in the Latest News section of the Pensions Website as soon as we received the information.

The timetable we were provided with stated that there would be changes published by 30^th June. That has not happened and we have expressed our concern to the Home Office and will continue to push for details of when the changes will be published.

The following factors were expected to be reviewed by 30^th June:

• CETV – Cash Equivalent Transfer Values used mainly in divorce proceedings.
• 2015 Scheme early and late retirement factors - the rates used to work out how much a police officer’s pension is reduced if they retire early or increased if they retire later than their normal retirement age.
• 2006 deferred early retirement – These are the factors used when a member defers their 2006 pension and then takes it before 65.
• 2006 inverse commutation – The rates used to work out how much extra yearly pension a police officer receives if they choose to give up some of their retirement lump sum.
• 2015 added pension – the rates used to calculate how much extra yearly pension a police officer can buy by paying additional contributions into the 2015 pension scheme.

We do not know as of today exactly what the changes will look like, or even if there will be changes to all of the factors listed, but it is important that we keep you updated. We will of course provide full details as soon as we are informed.

What we know

If you are aged 55 or over and planning to retire, changes to the factors used for taking your pension early or late could affect the amount of pension you receive straight away from the 2015 Police Pension Scheme. The changes could also have an effect on how much pension you can commute for a tax-free cash lump sum. Unfortunately, this is reflected in regulations and by the case law.

If you have a deferred 2015 pension, you may be affected too, but the impact will only be felt when you come to take your pension, and the calculations could change again before then.

What are we doing about it?

• We published details of the proposed pension scheme changes on our website as soon as we received them in May 2026.
• We have raised strong concerns with the Home Office and HM Treasury, making it clear that introducing changes with little or no notice is unfair to members planning their retirement.
• We are continuing to review the proposals with our legal and actuarial advisers, including advice from a KC, and are working with the Police Superintendents’ Association (PSA).
• While the proposed changes appear broadly reasonable from an actuarial perspective, concerns have been raised about potential bias in the cost control mechanism. We have formally raised this with HM Treasury, the Home Office and the Scheme Advisory Board.

What can you do

• Be cautious about making major financial commitments based on a commutation estimate you have already received. The amount you ultimately receive could be lower than the figure currently shown on your commutation statement.
• If you are planning to use your lump sum to buy a property, repay borrowing or meet another significant expense, factor in the possibility of receiving less than expected.
• The 1987 Scheme commutation factors were already updated following the changes announced on 21 May, so the impact of these latest changes is expected to be much smaller than the changes made to the 1987 Scheme.
• Members considering 2006 Scheme inverse commutation (giving up some or all of a lump sum in return for extra annual pension) should be aware the factors used are also under review.
• While any changes to the 2006 inverse commutation factors could affect the amount of additional pension received, we currently expect any impact to be relatively limited.

All of you deserve certainty when planning your retirement and introducing changes to pension commutation factors with little or no notice is unfair and unacceptable.

We stand firmly with our members and are continuing to challenge the Government on the way these changes have been implemented

We will keep you updated as soon as further information becomes available.

John Partington

National Secretary