It is important that you understand that this is not a definitive overview of the scheme, just a review of some of the main features as they stand at the moment. If you are considering joining any pension scheme you may wish to speak to an independent financial adviser first, to make sure that the scheme suits you.
From April 2006 all new recruits joining the police service join the New Police Pension Scheme (NPPS).
The key points of the NPPS are as follows:
- The minimum possible pension age (age at which you can retire) is 55
- If you leave the police service before then, or opt out of the pension, the earliest you can claim it is at age 65
- The maximum pension accrual period is 35 years
- Your monthly contributions are 9.5% of your gross salary (i.e. your pay before tax, etc. is taken away)
- Your pension is accumulated at 1/70th of final salary for each year of service
- The full pension is half of your final final salary plus a fixed lump sum of four times the pension
- You can opt to exchange some or all of the lump sump for an increased pension
- Your final salary is based on your highest pensionable pay up to 10 years before retirement
In summary then - if you work for 35 years, on retirement you'll receive an annual pension worth 50% of the highest salary you earned during your last 10 years of service, plus a lump sum of 4 x the pension.
The Home Office has lots more detail about the NPPS here on their website.