How Much Is a Police Pension After 20 Years

How Much Is a Police Pension After 20 Years?

The police pension is one of the most valuable benefits available to officers in the UK. After 20 years of service, you may be entitled to a significant pension that provides secure, inflation-protected income for life.

However, the amount you receive depends on which police pension scheme you are in, your salary history, and whether you are retiring or leaving service early. This article explains how the scheme works and what you can expect after 20 years of police service.

Which police pension scheme are you in?

There are three main police pension schemes in the UK:

1. Police Pension Scheme 1987 (PPS 1987) – for officers who joined before 6 April 2006

2. Police Pension Scheme 2006 (PPS 2006) – for officers who joined between 6 April 2006 and 31 March 2015

3. Police Pension Scheme 2015 (PPS 2015) – for officers who joined on or after 1 April 2015 or who transitioned from earlier schemes

From 1 April 2022, all serving officers are building pension benefits under the PPS 2015 scheme, although previous benefits earned in earlier schemes are preserved.

How is a police pension calculated?

Pensions under the PPS 1987 and PPS 2006 are based on final salary. The longer you serve, the larger the proportion of your salary that becomes your annual pension.

Under the PPS 2015 scheme, your pension is based on career average revalued earnings, often referred to as CARE. Each year, you earn a pension of one fifty-fifth of your pensionable pay. This is then revalued each year in line with inflation until retirement.

After 20 years of service, your pension will depend on:

• Your scheme membership

• Your average or final salary

• Whether you are leaving service or continuing to work

• Your pension age and whether you are taking your pension early

What can you expect after 20 years?

Let us look at approximate outcomes for each scheme:

Under PPS 1987

You may qualify for a deferred pension if you leave with fewer than 25 years of service, or an immediate pension if you are retiring with 30 years or more. After 20 years, you do not qualify for an immediate pension unless you are medically retired.

If you have 20 years' service and a final salary of £45,000, your deferred pension could be around:

• £11,250 per year, payable from age 50 or 55 depending on your scheme terms

You would also receive a lump sum of three times your annual pension on retirement.

Under PPS 2006

Under this scheme, 35 years of service is needed for a full pension. After 20 years, you would earn a pension equal to 20 sixtieths of your final pay. If your final pensionable salary is £45,000:

• Your annual pension would be approximately £15,000 per year, deferred until your normal pension age, which is 55

There is no automatic lump sum in this scheme, but you can choose to exchange some of your pension for a tax-free lump sum.

Under PPS 2015

This scheme uses a career average formula. Suppose you earned an average of £40,000 over 20 years. Each year, you would build 1 fifty-fifth of that amount.

• Over 20 years, this equates to 20 x £727 which is approximately £14,540 per year

This amount would be revalued annually with inflation. You can claim this pension from your state pension age, or from age 55 with a reduction.

Medical retirement and ill health pensions

If you are medically retired from the police service, you may be entitled to an immediate pension, regardless of your length of service. The amount depends on your medical assessment and level of disablement.

In some cases, officers receive an enhanced pension or an additional ill-health lump sum.

Can you take your pension early?

If you are in the PPS 2015 scheme, you may take your pension from age 55, but it will be reduced for early payment unless you are eligible for benefits under the ill-health or early retirement provisions.

In earlier schemes, you may be eligible to take your pension from age 50 or 55 depending on your service length and the scheme rules.

Final thoughts

After 20 years in the police, your pension could range from £11,000 to £15,000 per year, depending on your salary history and which pension scheme you are in. If you leave service before reaching the age at which the pension is payable, your benefits will be preserved and increase in line with inflation until you claim them.

The police pension is a valuable and secure benefit. It is always a good idea to request a personalised forecast from your pension administrator or use an official pension calculator to see how much you are on track to receive.