November 10th, 2006

Er, No Thanks

Posted in The Job - General by 200

The Home Office is currently sending out many thousands of pounds worth of gloddy publications to officers all over the country the majority of which will go straight in the bin (again).

This time it’s information about the New Police Pension Scheme.

The Government changed the Police Pension in April this year. The nuts and bolts of it are basically that they have reduced contributions a little, reduced the pension entitlements and added an extra 5 years’ service before you can retire on a full pension.

For many many years police officers have been entitled to a full pension on completion of 30 years’ service. This is widely acknowledged as a decent pension and one I will be taking full advantage in something under 200 weeks time.

The glossy brochures amount to a lovely 32-page booklet called ‘Understanding your choice’ which gives you all the information about the two schemes, and an 8-page brochure called ‘Making your choice’ both of which will help us decide whether to stay on the old scheme, or move over to the new scheme.

I have to admit, I haven’t got a clue what they say as I’ve not bothered to read them. I can cut the crap by looking at the attached printouts of my entitlements under the current scheme and if I move onto the new scheme. They can be summarised as follows:

Current pension

  • Retire in under 200 weeks
  • Tax Free lump sum of £82,000
  • Pension on £16,500

New Pension

  • Work an extra 5 years so retire in under 450 weeks
  • Tax Free lump sum of £65,300
  • pension of Pension on £16,500

So that’s work an extra 5 years and get 17 grand less, guess which box I ticked?

If you switch pension schemes, everyone’s a winner, except all those who aren’t the Government.

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3 comments

  1. Essy says:

    Aren’t you being a little short sighted ? If you work the extra 5 years you’ll be getting a lot more than £16,500 a year. You’ve mentioned salaries in earlier posts and let’s say you are at the higher end at £35,000 with overtime. My maths works that out at £18,500 x 5 = £92,500 MORE not £16,700 less.

    November 16th, 2006 at 18:03

  2. 200 says:

    Ah but that only works if I give up work and sit on my arse for the rest of my life. I’ll be under 50yrs old and fully intend to carry on work. It also takes no account of the extra 5 years of putting up with shite, extra 5 years of shifts, extra 5 years of stress and injury risk and all the crap that goes with the job.

    If I come back in a civvy role and get a salary of, say £22,000, then that’s on top of my 16,500 pension PLUS the additional £17,000 more on my commutation. (I don’t get 35grand by the way as I only work enforced overtime).

    The biggest issue is more than mere financial and that is the thought have having to do an extra 5 years.

    November 16th, 2006 at 19:14

  3. Brit1234 says:

    I worked as a pension administartor after university while waitng to join the police. From my experience in running a final salary scheme you should be sectioned under a 136 if swap schemes. It is not in the police officers interest to change finacialy, the only group who would benefit are the treasury. We do a extremely hard job working all hours of the day put under great stress in some of the most disgusting and dangerous places. This is not a nice easy nine to five job in a office and thus we earn the right to retire a couple of years early. 30 years of missing Christmas, New Years Eve, weekends and having days off cancelled at the drop of a hat must count for something. I don’t see John Reid or Gordon Brown campaigning for MP pension reform.

    November 22nd, 2006 at 01:31

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