The pension trap is where a person who joined at 20 years old and has worked 30 years can take 1987 pension at age 50 but not the 2015 CARE scheme because they are not aged 55.

A person who joined at 25 years old and worked 30 years can take both pensions as they have reached age 55. This is what is known as the pension trap.

The ‘pensions trap’ has become a term used by officers who will potentially be in receipt of their legacy pension and the new Police CARE pension 2015. When officers are in two different pension schemes there are competing factors at work.

The ‘pensions trap’ is a situation where it is argued that some officers are at a disadvantage due to certain circumstances, in particular the age they joined the police service.

Working with the National Council of the Police Federation of England and Wales a decision has been made to address the concerns of the membership by way of legal action.

Whilst we know that the Government will most likely defend their position and argue that the system is compatible with the law, this does not stop us pursuing the pensions trap issue on behalf of federated officers across England and Wales.

PFEW has already sought extensive legal advice on behalf of members in this area including advice from several prominent KCs.

We are currently selecting a number of cases from officers who are affected. These cases will be given to the legal team looking into this matter on behalf of PFEW. We can’t provide any timescales at this time but will update you once we have further information.

We also know that the application of interest on contributions owed to opt for the 1987 Police Pension Scheme for the remedy period is a concern for officers.

We have made strong representations around this and believe that the application of interest to a ‘debt’ you have no ability to pay is fundamentally unfair.

Despite our efforts, the Government’s position is still that the starting position should be that interest is applied. We are continuing to explore all avenues to see if this can be addressed or challenged and we will keep you updated once we have more information.

It is only right to highlight here that PFEW has no negotiating rights when it comes to police pensions.

We represent your views with all the stakeholders we engage with but ultimately police pensions are regulated centrally by government and are then run as 43 separate schemes across England and Wales.

The Chief Officer, or Commissioner, of each force is ultimately responsible for the administration of the local pension scheme.

If you have concerns around the ‘pensions trap’ or the interest being applied to any money you owe, we ask that you not only raise this with your local Police Federation but also write to your Chief Officer and/or local MP.

PFEW hopes to be able to update members in the coming weeks on the pension trap.

We have received numerous enquiries regarding what the Chancellor may or may not announce in her budget on 30 October 2024. PFEW, along with the other police staff associations, has written to the Chancellor expressing concerns regarding the rumoured change in commutation taxation.

There is no further information available and the press articles are no more than speculation at this stage.

This has recently been discussed at the last National Council meeting and all options are continuing to be explored.