Understanding the results (Notes and Assumptions)
- This calculator is solely for guidance purposes and is an estimate only. It is not intended to provide you with financial
advice. If you require financial advice, you should contact an independent financial adviser.
- Any change made to the functionality of this calculator by users risks inaccurate benefit projections being
produced.
- This calculator makes no allowance for the government’s proposals to remove the unlawful discrimination
arising from the transitional protection awarded to members as part of the reform of the public sector pension
schemes in 2015. Therefore, for members who are affected (those who joined the scheme on or before 31 March
2012 and remained in service after 31 March 2015) this calculator may not provide a correct benefit projection.
In particular, the benefits accrued during the period between 1 April 2015 to 31 March 2022, may not be based
on the scheme benefit structure you ultimately receive at your retirement. An updated calculator that accounts
for the remedy will be provided in due course.
- In the 'Calculator' sheet, the results sections (1) and (2) are in current money terms (after adjusting for assumed future
inflation i.e. by reducing the actual amount at projected retirement date by CPI each year until the current date). In the
'Actual amounts_results' sheet the results sections are in nominal money terms, without the effect of inflation removed
(i.e. the actual amount payable at retirement).
-The results sections (1) and (2) in both sheets allow for salary increases, inflation and revaluation of CARE benefits on
three different sets of assumptions. The assumed salary increases do not allow for any future promotional salary
increases you may receive.
- The amount of pension you may receive depends on when you retire.
- It is assumed that you will remain in active service until your selected retirement date, and that you will retire on normal
terms (i.e. you are not retiring in ill-health).
- Where retirement age is not age 60, the amount of 2015 scheme pension shown includes actuarial adjustments for the
earlier or later start of payments than the 2015 scheme normal retirement age of 60. These actuarial adjustments are
those currently in effect. However, they will be reviewed periodically, and may increase or decrease. Your benefits at
retirement will depend on the actuarial adjustment factors in effect at that time.
- If you are a 1987 scheme member, you may be entitled to retire before age 55. Results for retirement at ages before
55 show the amount of any 2015 scheme pension you have built up at your State Pension Age (SPA) as this is the
earliest age you would be entitled to take these benefits without reduction if you leave active service before age 60.
Alternatively, you could choose to receive your new scheme benefits from age 55, with actuarial reduction to allow for
the start of payments occurring earlier than your SPA.
- A simplified approach has been taken to calculate your SPA which involves using the nearest whole number SPA (i.e.
no allowance has been made for SPA in terms of years and months. This is not expected to significantly impact the
results shown). Allowance has been made for the increase of SPA to 67 by 2028 which is subject to review by the UK
Government.
- Benefits accrued in the 1987 and 2015 schemes are shown by firstly including the maximum amount of lump sum by
commutation of pension allowed under the scheme rules, and secondly assuming no commutation of pension. At
retirement you will be able to choose how much pension to commute for a lump sum (within limits). This projection has
used the commutation factors currently in effect. However, commutation factors are reviewed periodically and the
amount of lump sum available at your actual retirement will depend on the commutation factors in effect at that time.
- For service in the 2006 scheme, pension and lump sum benefits are shown. At retirement, you will have the option to
convert your lump sum into additional pension. There is no option to commute pension to provide an additional lump
sum in the 2006 scheme.
- The results do not include any money purchase Additional Voluntary Contributions (AVCs) benefits, added 60ths or
added pension which you may have purchased, pension debits or other special arrangements within the schemes.
If your 2015 pension includes transferred-in benefits, for simplicity this projection has revalued them at the same rate as
Police scheme benefits. A different rate of revaluation may apply to transferred-in benefits in practice which could be
higher or lower than the revaluation rate that applies to Police scheme benefits. The overall impact will depend on the
actual rate of revaluation that applies and the amount of benefits being transferred in.
- The calculator does not show pension from other sources, for example the state pension or other private arrangements
you may have.
- If you previously moved from the 1987 scheme to the 2006 scheme as part of the options exercise in 2007, an
approximate allowance has been made for the service that you would have been granted in the 2006 scheme. It is
assumed that you transferred your service to the 2006 scheme on 6 April 2006 and that any transferred-in service that
you have input above was granted before 6 April 2006.
- If you indicated you have worked part time, the calculator has allowed for part-time hours worked up to your most
recent benefit statement. It has also assumed you have worked your current part-time hours since then and will continue
to do so until retirement.
- Your scheme provides survivor benefits payable in the event of your death. which are not shown here. See your
scheme guide for details. Your benefit statement may also provide further information.
Taxation
- The illustrations do not allow for taxation. Your benefits will be subject to the various tax rates and limits in force. You
may wish to seek specialist advice if you think you could be affected.
In certain circumstances, for some members, it is currently possible to take a maximum commuted lump sum from the
1987 scheme which exceeds that which HMRC allows to be paid tax free. In those circumstances if maximum
commutation is taken the member will incur a tax liability. The maximum lump sum figures given in the results are not
limited to what can be taken tax free, do not indicate where a tax liability arises, and where it does arise, do not show
the maximum commutation figure net of tax.
Warnings (continued over)
- The results produced are not a formal statement of your entitlements.
- This calculator only applies to the scheme in England and Wales.
- The results shown above are estimated, using a given set of assumptions. Using different assumptions in the
calculations could produce different results.
- The calculations of the lump sum by commutation, and any adjustments for early or late retirement, use factors
currently in effect. These factors are reviewed periodically. When you actually retire, the scheme factors in force at the
time will be used, as appropriate. This may produce different results, other things being equal, to those illustrated here.
- Allowing for promotional salary increases would increase the projected benefits.
- If future experience differs from the assumptions used, the pension you will receive at retirement will be different from
those shown above.
- If you wish to seek financial advice, please contact an authorised independent financial adviser. The results above are
not to be considered as financial advice.
Detailed notes (which explain some of the details of the calculations)
- The 2015 scheme is a Career Average Revalued Earnings (CARE) scheme with an accrual rate of 1/55.3 and
revaluation for active members before retirement in line with the change in the Consumer Prices Index (CPI) plus 1.25%
a year.
- Transitional arrangements, including full and tapered protection, have been allowed for in the results.
- The calculator assumes that general long-term pay increases by (i) 0.0%, (ii) 1.0% and (iii) 2.0% more than CPI each
year. CPI has been assumed to be 2.0% a year. However, if the selected retirement date is before 1/4/2020, the lowest
rate of pay increases has been set to 1% (CPI – 1%).
Police Officers' Pension Scheme Calculator
Important information - please read this before you start
- This calculator will provide an illustration of your pension at a chosen retirement age.
- The results shown are only estimates, based on your inputs and other assumptions.
- Please read the 'Guidance Notes' tab for further details and limitations.
A: Your details
1. Your date of birth (dd/mm/yyyy)
2. Your name (first name and surname)
3. The date you joined the scheme (dd/mm/yyyy) more info
4. The scheme you were in prior to 1 April 2015 (Choose from the list in the box) more info
5. Rank at retirement more info
6. How much service you have been granted for transfer in (final salary scheme only) more info
7. Your pensionable earnings (full time equivalent at the start of the current scheme year)
8. Retirement date (ie first day of retirement) for illustration (dd/mm/yyyy). more info
9. Do you know your accrued 2015 scheme benefit (as shown on your annual benefit statement)?
2015-16 2016-17 2017-18 2018-19 2019-20
Total accrued CARE benefit at each of the past scheme years more info
10. Your employment status (Choose from the list in the box) Full-time more info
11. Your current part-time proportion (entered as percentage e.g. 50%) more info
If you have selected 'Part-time', please fill in the section below
12. The end date of your current annual benefit statement more info
13. The reckonable service on your annual benefit statement more info
14. If you had a career break that ended before 1 April 2015, how long was it? more info
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Police Pension Scheme (England and Wales)
This calculator is for guidance purposes only. It is an estimate only and is not a guarantee of
future benefits. It is not intended to provide you with financial advice. If you require financial
advice, you should contact an independent financial adviser.
This projection should be read along with the accompanying notes.
Illustration of pension benefits for retirement at
Name
Date of Birth
Date of joining the scheme
Pensionable Earnings
* CPI 2%, salary growth 1.0%
Insufficient data supplied, please fill in rest of form
Projected pension at :
Automatic Lump Sum
The Police Pension Scheme allows for part of your pension to
be exchanged for a lump sum at retirement. This is called
commutation.
Amounts following maximum commutation:
Pension
Lump Sum
Please note, as you have selected a retirement data that is before
Normal Pension Age in the 2015 Scheme, entitlement is deferred
until you reach your state pension age. **
Deferred 2015 pension payable at SPA
After maximum commutation:
Pension
Lump sum
** The deferred pension is payable at a reduced rate from age 55
generated on 02/02/2021
