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