Quick Links:
Member Services
Message from Merseyside Police to Police OfficersDear Colleague,
We have been informed by the Home Office of the Home Secretary's decision to increase police pension contributions payable by police officers, with effect from 1 April 2012. This concerns contributions made under the Police Pension Regulations 1987 and the Police Pension Regulations 2006.
On 30 January 2012, the Home Secretary announced that she has decided to implement the first year of increases in line with the proposal put to the Police Negotiating Board, the details of which can be found at Annex A below.
This is to inform you of an increase in the contribution rate to your pension, which is effective from 1 April 2012. The increase will depend on which scheme you are in, and on your basic annual salary, and will be as set out in the table below. The Force will continue to pay a rate of 24.2% on your behalf.
Annex A: increase in police officer contributions
| 2011/12 | 2012/13 | ||
| Increase in officer contributions (compared to 2011/12) | Tier 1 - 1987 scheme | n/a | n/a |
| Tier 1 - 2006 scheme | 0 | 0.6 | |
| Tier 2 - 1987 scheme | 0 | 1.25 | |
| Tier 2 - 2006 scheme | 0 | 1 | |
| Tier 3 - 1987 scheme | 0 | 1.5 | |
| Tier 3 - 2006 scheme | 0 | 1.25 | |
| Total officer contributions - tier 1 1987 scheme | % | n/a | n/a |
| 2006 scheme | % | 9.5 | 10.1 |
| Total officer contributions - tier 2 1987 scheme | % | 11 | 12.25 |
| 2006 scheme | % | 9.5 | 10.5 |
| Total officer contributions - tier 3 1987 scheme | % | 11 | 12.5 |
| 2006 scheme | % | 9.5 | 10.75 |
Tier 1 is those on a basic annual salary of under £27,000.
Tier 2 is those on a basic annual salary of more than £27,000 but less than £60,000.
Tier 3 is those on a basic annual salary of £60,000 and over.
The Home Office have produced a brief Q&A on the changes, which you may find useful.
Q & A ON POLICE PENSIONS INCREASE IN CONTRIBUTIONS EFFECTIVE FROM 01/04/12
1. How do we determine the rate of pay for each officer in order to decide which tier they are to fall into?
The tier into which an officer will fall depends on basic annual salary (not pensionable pay) as at 01/04/12. So this will not include any bonus, weighting or other payment. For part time workers, the full time equivalent salary should be used.
2. How do we deal with changes mid-way through a financial year?
Whenever a change to an officer's basic annual salary would take it to a different tier, the change to contribution rate should be implemented accordingly.
3. Should temporary promoted salaries be included in the uplift arrangements?
Yes, a temporary promotion should be treated as though it were permanent for this purpose.
4. How does the increase affect officers who pay reduced rate contributions because they do not qualify for ill-health benefits?
Officers who pay reduced rate contributions because they would be ineligible for a pension award under G7 or G8 of the 1987 regs or reg 8 of the 2006 regs will pay contributions reduced by 3.5 percentage points ie:
Scheme Normal rate wef 01/04/12 % Reduced rate wef 01/04/12 % Tier 1 2006 10.1 6.6 Tier 2 1987 12.25 8.75 2006 10.5 7 Tier 3 1987 12.5 9 2006 10.75 7.25
5. What is the effect of these changes on the 15% contribution limit?
The 15% contribution limit in PPS will change, such that it is 4% above the basic contribution rate for an individual officer (eg 16.5% for a Tier 3 officer during 2012-13)