Dear Colleague,
I am aware that the future of Police Pensions is an issue of great concern for all police officers, particularly as the consultation process on a new police pension scheme is about to commence.
I can confirm that the Home Secretary wrote to John Randall, the Independent Chair of the Police Negotiating Board (PNB) on the 27th March 2012 outlining the government's position for the future of police pensions and required both sides of the PNB to consider and respond to these proposals by the 22nd June. This reaffirmed the government's intention to introduce a pension scheme for police officers in line with the recommendations made by Lord Hutton for all public sector workers, in that existing public sector pension schemes would be replaced by Career Average Schemes by April 2015. Further information can be found on the HM Treasury website:
http://www.hm-treasury.gov.uk/tax_pensions_police_cost_ceiling.htm
http://www.hm-treasury.gov.uk/tax_pensions_frequently_asked_questions.htm
The Staff Side considered the Home Secretary's letter at a meeting on 11th April 2012. It was decided to form a Staff Side working group who with the support of our professional advisors would prepare for a series of meetings with the Official Side prior to providing our formal response to the government's proposals. Because some of the detail provided by the Home Secretary had been provided on a restricted basis Staff Side decided not to circulate it wider at that time. I have now become aware that some of the information contained within the Home Secretary's letter has been circulated to forces by the Official Side, which is likely to raise significant concern to members who may believe that this is a done deal, when in fact this is not the case.
Although the Home Secretary's letter relates to how a Career Average Police Pension Scheme may operate in the future together with suggested transitional arrangements, the complexities of these matters require us to take professional advice so that the implications for our members can be fully appreciated and understood, which will assist Staff Side to achieve the best possible pension scheme for police officers. The development of any future Police Pension Scheme of this type will involve consideration of the relationship between the accrual rate, the retirement age, the contribution rate of both the officer and the force, together with an uprating mechanism to maintain the value of the officers pension during their service. There are also significant complexities in relation to the transitional arrangements of both the 1987 and 2006 Police Pension Schemes.
The first meeting of both sides of the PNB Working Group to consider these matters is on Wednesday 2nd May and will be followed by a number of other meetings. As we are now entering an extensive period of consultation on these proposals it is difficult for me to be definitive about the future police pension scheme. I would however assure you that with the support of our advisors we will be doing our very best for the future pensions of police officers.
Whilst the proposed changes to police pensions are currently the subject of consultation the details of the final scheme have yet to be determined. It is important that you help us influence both the future of Police Pensions and the wider debate on the government's policing agenda and it's detrimental impact on the service by attending the march in London on 10 May.
Please contact your local Federation Office for details of the march. I look forward to seeing you at the march and I will keep you informed of developments.
Regards,
Ian Rennie
General Secretary
Police Federation of E&W
