Bedfordshire Police Federation are fully aware that there has been an enormous amount of speculation about what is going to happen to the Police Pension in the near future.  It is important to understand that, to our knowledge none of the current rumours are based on fact, they are pure speculation that have emanated from a number of sources, to fill the void, as actual information is almost none existent. Let us tell you all of the current known facts. There are currently 2 reviews being conducted which have a potential impact on Police Pensions.

The first is a review of police pensions, which is scheduled to report in April 2011. Police Pensions are reviewed on a regular basis, usually about once every five years, and this review forms part of that series. The review has been planned for a number of years, and although its timing has nothing to do with the current financial situation, we are certain that that situation will be considered as part of the review.

The second review is a review of all public sector pensions being conducted by Lord Hutton. This review is expected to provide an interim report in September. Although the Police form part of the public sector, and the National Federation will be looking to meet with Lord Hutton as part of the review, we have no indication of what effect this review will have on police pensions.

The only change that we are current aware of is the decision by the Government, announced recently to change the way in which all final salary pensions are uprated. Currently anyone over 55 years of age who receives a Police pension will receive an annual pension increase based on the Retail Price Index.  This will now change to an increase based on the Consumer Price Index. In June 2010 the RPI stood at approximately 5% and the CPI stood at approximately 3%. If we look at the figures over the past 20 years the CPI has on average been 0.7% lower than the RPI.

What this means for retired officers, is that they will continue to get an increase in their pension to account for inflation, but that increase will be lower than previously obtained. On an annual basis the difference will be small, but if you are fortunate enough to live a long life, the actual amount that you will no longer receive does add up to thousands of pounds.

There is no other information currently available about future changes to the pensions. Anything that you hear is just rumour and should be treated as such. The pension regulations are not part of a negotiated settlement, and any changes can and will be imposed. There is no right of appeal. As soon as any new information arises your Federation will provide immediate updates.

Concern has also been expressed in relation to Regulation A19 of the Police Pension Regulations.

Regulation A19 states – “Compulsory retirement on grounds of efficiency of the force”

This Regulation shall apply to a regular police officer, other than a chief officer of police, deputy chief constable or assistant chief constable, who if required to retire would be entitled to receive a pension of an amount not less than 2/3rds of his average pensionable pay or would be entitled to receive a pension of such an amount if it did not fail to be reduced in accordance with Part VIII of Schedule B (reduction of pension related to up-rating of widows pension) or if he had not made an election under Regulation G4(1).

If a police authority determines that the retention in the force of a regular policeman to whom this Regulation applies would not be in the general interests of efficiency, he may be required to retire on such a date as the police authority determine.

What this means in practice, is that if a police officer has more than 30 years pensionable service (this includes any amount transferred in from a previous pension scheme), then the Force has the right to forcibly retire that officer, with 28 days notice, provided it is on the grounds of the efficiency of the Force.