Commutation Factors / Added Benefits

Arrangements for Applying More Beneficial Commutation Factors

Normally officers must make their last day of service fall at least two days before their next birthday to ensure that the commutation factor used for calculating the lump sum is based on the age on that birthday and not on the birthday following that. For example, an officer aged 51 who will be 52 on March 31 must make his last day on 29 March to avoid a commutation factor for a person who will be 53 next birthday. An exception is made for officers who are being compulsorily retired on grounds of age, in which case their age next birthday is deemed to be the CRA.

Arrangements for Purchasing Increased Benefits

The Police Pensions (Purchase of Increased Benefits) Regulations 1987 should be administered after 1 October 2006 so that references to the "retirement date", which is defined in the regulations as the date on which a police officer could be required to retire on account of age, are read as meaning the date on which the officer could have been required to retire on account of age under the pre-October 2006 arrangements. Thus a constable will still be able to purchase a maximum of two added 60ths if he or she could only have built up 38/60ths by the age of 55.

John Ainsworth
JBB Treasurer