Lincolnshire Police Federation

office contact details

Pension Advice

pensions

 

Welcome to the pensions page of our website.

Ensuring good engagement with the Government around the police pension schemes is one of the most important areas of work by PFEW because a police pension has always been regarded as a key element of the remuneration of our members.

Below you will find several links to useful resources regarding your current pension, the legacy schemes and the latest updates regarding the work undertaken on the McCloud remedy.

Lincolnshire police uses XPS as their pension administrator. If you have any specific questions in relation to your pension you can contact the administrator via the following contact details:

 

XPS - Lincolnshire Pension Administrator

Call: 0330 0545496

Email: penmail@xpsgroup.com

www.myownpension.co.uk/police-member

 

Police Federation

Police Pension FAQs

www.polfed.org/support/pensions

 

National Police Chiefs Council (NPCC)

A site created by the NPCC offering useful information and a link to a police retirement calculator.

policepensioninfo.co.uk

  

NPCC Police Pension Changes 2022 Guidance Document

https://www.swpolicepb.co.uk/media/2966/15-member-remedy-comms.pdf

 

Some individuals and organisations – often advice charities - offer financial guidance. This is different to financial advice. Guidance provides you with information about the various options available to you, but should not recommend any particular option over another. Financial advice, however, informs you which specific product would best suit your needs.

Guidance services are not regulated by the Financial Conduct Authority (FCA). This means if things go wrong with your financial choice, you may not be able to complain to the Financial Ombudsman Service or Financial Services Compensation Scheme.

Remember always consider seeking financial advice before making decisions that may affect your financial future.

  

Pension Remedy FAQ

  

1987 Scheme Member Guide

2006 Scheme Member Guide

2015 Scheme Member Guide

 

Pensions Calculator

Police Pension McCloud Remedy Calculator

  

www.peninsulapensions.org.uk/members/police/

https://www.lppapensions.co.uk/members/schemes/police-officers-scheme/

 

 

Who is eligible for a Lump Sum Death Grant in the PPS 2015?

If you die whilst an active member of the PPS 2015, your ‘survivors’ may be eligible to receive a Lump Sum Death Grant regardless of whether or not any Adult Survivor’s pension is payable.

The grant will be paid to your surviving spouse or civil partner (if you have one) or to a surviving declared partner (at the discretion of your Police Pension Authority). Otherwise, the lump sum death grant will be paid to your personal representative (normally your estate). You may, however, nominate a recipient(s), including an organisation to receive the lump sum death grant, if you leave no spouse or partner. You may also nominate as many people or organisations as you like.

In order to nominate your declared partner, use the link below:

My Own Pension - Police Member - 2015 Scheme - Scheme Guides & Forms

 


Scheme Sanction Charge & Unauthorised Payment Surcharge            

Scheme Sanction Charge

The Scheme Sanction Charge is a charge related to an unauthorised payment. An unauthorised payment happens when a commutation lump sum is above the Pension Commencement Lump Sum (PCLS) threshold. Unauthorised payments have been happening since 2011 when commutation factors rose and the size of the lump sum increased. 

There is a member charge of 40% of the unauthorised payment, and a 15% charge known as scheme sanction charge, which should be paid by the scheme, but some scheme managers have been passing this charge to the member. 

As background to this issue- 

  • In 2010 the commutation factors changed to above 20, that breached the HMRC maximum limit introducing the unauthorised payment charges, and with them the scheme sanction charge. 
  • Neither Home Office or HMRC were able to advise scheme managers on how to treat scheme sanction charges and who should pay these. 
  • Scheme managers are responsible for managing, administering and governing the scheme. 
  • Scheme managers who took the decision to pass the charge to the member should have an audit as to why the charge would be passed to the member, and their reasoning. 
  • Since 2021 when a national pension team was established within NPCC, advice has been given on the matter of the scheme sanction charge. 

The charge should not be passed to the member, because the scheme rules do not allow it. The finance act 2004, says in section 239 paragraph 2 that the person liable to the scheme sanction charge is the scheme administrator. To clarify for the purposes of the term ‘scheme administrator’ they mean the scheme manager - Finance Act 2004 (legislation.gov.uk). Therefore, the person liable is the scheme, and the scheme sanction charge is not chargeable to the member if the pension scheme rules do not allow for it, the 1987 regulations have never been amended to allow the scheme to deduct the tax charge from the member. 

Retired officers who paid tax on their commutation should have received information from the Force. In that information it would state if a Scheme Sanction Charge had been applied.  

If an officer chooses the maximum lump sum commutation from the 1987 pension and has not reached 62 years and 2 months, then there is a tax implication as it breaches scheme rules. The HMRC then levy a Scheme Sanction Charge for the breach of scheme rules.  

Lincolnshire Federation has raised this matter locally with Nick Ward from Finance and we have received assurances that the force has never passed on the Sanction Charge.

Unauthorised Payment Surcharge

This is a tax separate to SCC and is deducted from the lump sum only with the agreement from the individual.

  


 

Opting out of the Pension Scheme

You are automatically enrolled to the 2015 Scheme on appointment to a police force unless you decide to opt out.

If you opt out of the 2015 Scheme you will be automatically re-enrolled into the 2015 Scheme every 3 years on your automatic re-enrolment date. If you want to remain opted out, you will need to opt out within one month; this will be backdated from the automatic re-enrolment date.

If you are thinking of opting out of the 2015 Scheme or the 1987 Scheme or the 2006 Scheme you are strongly recommended to take independent financial advice before you make a decision.

For further information on opting out and auto enrolment please visit the XPS website here:

2015 Scheme - Leaving the Scheme


 

Added Pension Option 

You may opt to make added pension payments in order to increase:

  • Your retirement benefits for a period of service; or
  • Your retirement benefits and death benefits for a period of service.

If you choose to exercise this option, you will be able to decide whether the added pension payments are to be made by:

  • Periodical payments; or
  • A lump sum payment

You will only be able to exercise the lump sum option if you have been an Active Member of the 2015 Scheme for a continuous period of at least 12 months and you have been provided with a statement of the amount of added pension.

Please note that you may also use the whole or part of a lump sum which would have been payable to you under the Compensation Scheme as a lump sum payment to buy added pension, but you will need to specify this option to your Police Pension Authority.

You will be able to exercise the added pension option more than once but you can only choose to make a lump sum payment for added pension once in any Scheme Year.

The maximum amount of added pension that can be purchased for any Scheme Year is reviewed annually by HM Treasury.

If you decided to make periodical payments for added pension, the Police Pension Authority may cancel the added pension option if it appears that the added pension limits will be exceeded if you continue to make those periodical payments.

The following link on XPS website offers further information and application forms:

2015 Scheme - Increasing Your Benefits