You are entitled to a deferred pension if you leave your employment as a police officer and you:
- have at least 2 years qualifying service or, if less, have had a transfer in of pension rights, and
- are not eligible for immediate payment of a Police Pension Scheme 2015 (PPS 2015) pension because you are not old enough, and
- are not retiring on grounds of ill-health. Further information can be found in ill health.
If you opt out of the PPS 2015 while still in employment, you are entitled to a deferred pension provided you have at least 2 years qualifying service or have had a transfer of pension benefits into the scheme.
Your annual pension is calculated by dividing your annual pensionable earnings each scheme year by 55.3. The pension you build up each scheme year is added together in your pension account. Your annual pension is revalued each year when you take your benefit to make sure it keeps up with the cost of living.
Jim leaves on 31 March 2017. His annual pensionable earnings were £17,000 in 2015/16 and £18,000 in 2016/17.
His deferred annual pension is:-
For 1 April 2015 to 31 March 2016: £17,000 ÷ 55.3 = £307.41
For 1 April 2016 to 31 March 2017: £18,000 ÷ 55.3 = £325.50
Total annual pension = £307.41 + £325.50 = £632.91
Jim built up an annual pension of £632.91. This is revalued to keep up with the cost of living.
You can exchange part of your annual pension to provide a lump sum if you wish. You can exchange as much or as little as you like provided that you do not exceed the permitted limit. This can be up to 25% of the capital value of your pension. You would receive £12 as a lump sum for each £1 of pension that you give up. Further information can be found in Exchange pension for lump sum.
Date deferred pension payable
Your deferred pension is payable at state pension age.
You can request early payment from age 55 but your deferred pension will be reduced to take account for being paid earlier.
It can be paid at any age on the grounds of ill-health even if you are no longer in the police force. View further information in Ill health.
It is important that you keep us informed if you move so please let us know by completing the Change of address form.
Transferring your benefits
You may be able to transfer out your deferred pension to another pension scheme. View further information in Transferring out benefits.
Your deferred pension increases with the cost of living every April until payment. When your deferred pension is paid to you it continues to increase with the cost of living every April.
Deferred pension and death
If you die before your deferred pension is paid, a pension is automatically payable to your spouse or civil partner and eligible children.
A pension is payable to a partner but you must both meet certain criteria:
- you must have been in a relationship for at least 2 years
- both free to marry or form a civil partnership, and
- be financially interdependent or your partner financially dependent on you.
You can nominate your partner by completing a Pension for partners – declaration form (PDF, 158.7 KB).