Review of Public Sector Police Pensions

The independent review of public sector pensions currently being undertaken by Lord John Hutton has recently published an interim report, which is available together with the terms of reference on the Review website at Pensions.Commission@hmtreasury.gsi.gov.uk.

This review is a fundamental structural review of public service pension provision, including police pension arrangements and will make recommendations to the Chancellor and Chief Secretary on pension arrangements that are sustainable and affordable in the long term, fair to both the public service workforce and the taxpayer and consistent with the fiscal challenges ahead, while protecting accrued rights.

The Police Federation has submitted two joint responses with the Staff Side of the Police Negotiating Board, which are available on the Police Federation website as shown above. The final report is expected to be published in spring this year in time for the Chancellors Budget.

You may also be aware that the publication of the Comprehensive Spending Review (CSR) at the end of last year included two very important announcements regarding the future of public sector pensions. The first was that the uprating mechanism for pensions in the future should be changed from the RPI to the CPI and the second was that there would be an average 3% increase in the contribution rate for public sector pensions.

There has been much speculation within police forces in respect of police pensions but it is important that you are aware that any proposed changes from either the CSR announcement or from the Hutton Review of public sector pensions will be sent by the Secretary of State to the Police Negotiating Board for full consultation to take place.

We will keep you fully informed of any developments in relation to this very important issue.