Just a quick update to confirm that PFEW have asked our retained actuaries to look at the methodology around the commutation change and other aspects of the process so we get as full a picture as possible – we have also asked if there is any avenue of challenge.

I have also asked for legal advice on legitimate expectation and also any other avenue of challenge.

Let’s not lose sight of the fact that the Home Office and NPCC knew that this bad news was coming and left us to find out about it when they published it yesterday. We have two meetings today with Phil Wells and then the Home Office – Tiff made some good points yesterday about calling out who is responsible for this debacle. When they knew there was going to be a reduction they should have consulted rather than cliff edged the decision as normal. I know this is how they work with a change in factors but the three previous changes have been positive.

There is further potential pain coming down the line too as they may change the inverse commutation rates for the 2006 scheme and the actuarial reductions for the 2015 scheme. We cannot deal with that until any changes are published.

There is no way of sugar coating it for members if they are going to take commutation from the police pension scheme then the amounts that they will receive will be smaller than they would have been on 20^th May. Their gross pensions are unaffected.

PFEW will take any action that it can and I have had an idea which has just come to me this morning but could be a runner – we should lobby for the unauthorised tax-charge on the police pension scheme commutation to be removed – it will be for others to decide on that but it would show we are trying and if we were successful then would more than mitigate for the change in commutation factors (for the majority).

 npcc-scape-discount-rate-changes-faqs.pdf

police-ew-1987-scheme-commutation-factors-21-may-2026.pdf

Kind regards

Paul 

Senior Pension Advisor - PFEW