Human Resources
A History of Police Pensions
Once upon a time the Metropolitan Police was the first police force in the United Kingdom to introduce what would effectively become the first police pension scheme. Read on for more information on how this developed into the nationwide, formal scheme we see today.
Police pensions - a brief history
Police pensions date back to 1829 when the Metropolitan Police Act introduced certain benefits on disablement for London officers 'worn out by length of service'. A full pension scheme for all police officers became available in 1890. The first unified Police Pensions Act came into force in 1921 and detailed Police Pensions Regulations along current lines followed in 1948 under the Police Pensions Act of that year.
There have been many changes since then, but entitlement to a police pension has always been regarded as a key element of the remuneration of police officers to enable them to undertake their role with confidence. The arrangements under the Police Pension Scheme 1987 and the New Police Pension Scheme 2006 offer a range of benefits that provide financial security both in the time up to retirement and beyond. Both schemes are controlled by formal regulations.
Introducing a police pension for the 21st century
Towards the end of the 1990s, it became increasingly apparent that the Police Pension Scheme as set out in the 1987 regulations might no longer meet the needs of a modern police service. This, combined with the rising cost of police pensions, led to a search for new pensions options. Against this background the Government confirmed its commitment, in both the Police Reform White Paper of December 2001 and the National Policing Plan of November 2002, to consider options for modernising police pensions and to make them more flexible and affordable for future entrants. The Police Pensions Regulations 2006 are the result of these efforts.
Following agreement in the Police Negotiating Board, the New Police Pensions Scheme 2006 (abbreviated to NPPS), was introduced on 6 April 2006 and new entrants to the service from that date have joined the new scheme.
The 2006 regulations and NPPS are equivalent to the Police Pensions Regulations 1987 and the Police Pension Scheme 1987 (PPS). The 2006 Regulations do not replace the 1987 Regulations, as these will continue to apply for those who joined the service before 6 April 2006 and who choose not to transfer to the new scheme.
Tax simplification - A-day
On 6 April 2006 HM Revenue and Customs' new regulations about tax and pensions came into force. One of the requirements is that provisions for benefits which are not determined by building up pension rights can no longer be in regulations governing pension schemes.
As a consequence the Police (Injury Benefit) Regulations 2006 were made. These are essentially a consolidation of the provisions as they stood for benefits paid out in the event of an officer retiring or leaving dependents after an injury in the line of duty.
This means that we now formally have two pension schemes and one injury benefit scheme - a long way from just one pension scheme back in the 1800s.
