1987 McCloud Remedy and Remedial Service Statements

***we have been provided this by Warks HR to help with current pension queries***

We have been notified by XPS that they have provided your Annual Benefit Statement (ABS-RSS) on your self service portal account. This includes important information about how the Pension Remedy affects you and the choices available to you now and when you retire. There are different impacts for officers depending on when they moved into the 2015 scheme, and some officers will have been protected which means that they were not moved into the 2015 scheme until 1^st April 2022. It is not possible to set out all the variations but this email is intended to provide some key information and much more information can be found here - Police Pension Info - policepensioninfo.co.uk. If you need guidance on how to access the self service portal please see the intranet here - Intelligent Intranet (warwickshirepolice.uk).

As a former member of the 1987 Police Pension Scheme your ABS-RSS will detail what your pension benefits would be under the 1987 and the 2015 scheme. For the time being you have been ‘rolled back’ i.e. returned to the 1987 scheme for the entire remedy period (1^st April 2015 – 31^st March 2022).  You do not need to decide which scheme you want to take your benefits from until you retire, so there is no action required of you at this stage.

You will see within the ABS-RSS a section titled contributions. If when you retire you wish to take your benefits for the remedy period from the 1987 scheme you will need to pay back the additional contributions – this is because the actual contributions you paid during the time you were in the 2015 scheme were lower than they would have been if you had remained in the 1987 scheme. You do have the option to pay back the contributions within 12 weeks of receiving your ABS-RSS, and you will have the same opportunity every year when you receive your annual statement, or alternatively you can defer payment of these until you retire when they can be deducted from your lump sum. If you do defer payment then you need to be aware that interest will continue to be added – there are some examples of what the interest could amount to on the website here NPCC-Member-Remedy-Factsheet-Illustrative-examples-contributions-adjustments.pdf (policepensioninfo.co.uk).

Another important factor to be aware of is that the contributions owed figure in your ABS-RSS is a gross figure. If you had paid these contributions at the time you would not have paid tax on this amount, so the final figure that needs to be repaid will need to be adjusted to provide you with the equivalent tax relief. If you decide to repay these contributions before you retire we will provide you with an updated figure which will be less than what is shown in your ABS-RSS, but as a rough guide if you are a higher rate tax payer the actual amount owed will be approximately 40% less and if you pay basic rate tax the actual amount owed will be approximately 20% less than the amount quoted. The reason that tax relief has not been taken into account in the ABS-RSS is that legislation is having to be changed to allow us to provide tax relief in this way and the changes have not been made in time for the ABS-RSS to include this.

If you do decide that you want to repay the contributions owed this year this must be done within 12 weeks of the date stated on your ABS-RSS, therefore we would need you to let us know your intention no later than 26^th October so that we can provide you with an updated calculation and details of how to make the payment in time for the 12 week deadline. To notify us that you wish to make a payment please send an email from your work email address to the @ McCloud Pension Remedy inbox – McCloudPensionRemedy@warwickshire.police.uk.

If having read the information provided on the Police Pension Info website you have further queries please send an email to the @ McCloud Pension Remedy.