The 2006 pension came into effect on 1 April 2006 and all new entrants from that date onwards would join the scheme. 1987 members were offered the opportunity to move across to the 2006 scheme but not many chose to do so.

The scheme closed to new entrants on the 31 March 2015 and closed as an active scheme on 31 March 2022.

The 2006 scheme was a scheme where members accrued a 70^th of pension for each year of membership and there was a maximum accrual of 35/70ths. The minimum pension age was 55 and there was no actuarial reduction for taking benefits at that point.

The member’s guide is in the link.

NPPS_Members_Guide.pdf (publishing.service.gov.uk)

The calculation for the 2006 scheme is:

Pensionable Service/70 x Average Pensionable Pay = Gross Pension.

Maximum Commutation is Gross Pension x 4.

There is no weighted accrual in the 2006 scheme.

Like the 1987 scheme it is a final salary scheme with similar provisions for calculation of the final salary using the best of the last three years. There is a provision to look back 10 years and

take the average of three consecutive years in those last 10 years. Very few officers who will ever use this provision.

The maximum commutation is four times the gross pension, there is no loss in pension in securing the commutation. There is the ability to increase the pension and take no commutation or a different level of commutation. The factors used are in the link below.  There is no tax implication on commutation in the 2006 scheme.

Police_factors_-_NPPS_Exchange_of_lump_sum_for_pension_16Sept2011.pdf (publishing.service.gov.uk)