Police Federation

Glossary of terms

2015 CARE Scheme                           

The pension scheme established by the Police Pensions Regulations 2015.

 

Accrual Rate                                      

The rate at which pension builds up with increases of pensionable service (expressed as a fraction).

 

Aarons                                                

The legal case confirming unlawful discrimination under the police pension scheme as a result of the Transitional Protections.

 

Active Member                                 

A serving officer who is contributing to one of the police pension schemes and accruing benefits under that scheme in respect of current service.

 

Actuarial Reduction                          

A reduction made to pension benefits, applied when the pension is taken early, to recognise that the pension is in payment earlier and will therefore be paid for longer.

 

CARE Scheme                                    

A Career-Average Revalued Earnings scheme is a form of defined benefit pension scheme whereby the pension is based on pensionable earnings throughout a career, instead of at or near retirement.

 

Career Break                                    

A period of unpaid leave under the determination at Annex OO for Regulation 33 of Police Regulations 2003.

 

Club Transfer                                     

A transfer of pension rights between pension schemes which are part of the arrangement between public service schemes which enables the making of transfers on favourable terms.

 

CPI                                                      

The Consumer Prices Index; a measure of inflation.

 

Deferred Choice Underpin               

The method for the application of the Remedy adopted by Government following consultation. This is also known as the DCU and allows members in scope of the Remedy to make a choice of their benefits for the Remedy Period at retirement.

 

Deferred Pension                              

A benefit relating to the past service of members of one of the police pension schemes who are no longer Active Members but have not yet retired.

                                   

Defined Benefit Scheme                   

A scheme in which the benefits are defined in the scheme rules or regulations and accrue independently of the contributions payable and investment returns (where applicable). Most commonly, the benefits are related to members' earnings and the length of pensionable service at the date of retirement or leaving. Final salary and CARE schemes are both  defined benefit schemes.

 

Double Accrual                                 

A feature of the Police Pension Scheme 1987 whereby pension accrues at the rate of 1/60th for the first 20 years of pensionable service, but accrual then doubles to 2/60ths for the last 10 years.

 

Final Salary                               

Police Pension Scheme 1987 (PPS 1987) and New Police Pension Scheme 2006 (NPPS 2006) members who become members of the 2015 CARE Scheme will have their PPS 1987 and NPPS 2006 benefits calculated by reference to their final salary at the point of retirement, and not by reference to their final salary when they move into the 2015 CARE Scheme.

 

Full Transitional Protection             

A protection introduced in April 2015 which enabled PPS 1987 and NPPS 2006 members to remain in those schemes and therefore not become members of the 2015 CARE Scheme. This protection has subsequently been found to have been unlawfully age discriminatory against younger members.

 

Immediate Detriment (ID)                

The disadvantage caused to members who are in scope of Remedy and who retire from service and take their pension before the point at which Remedy has been fully implemented. They will be retired in accordance with the existing governing regulations rather than being able to retire with Remedy compliant benefits and therefore will suffer this detriment. The benefits payable to such members will, once Remedy is fully implemented, be revisited and corrected to be fully Remedy compliant. 

 

ID Guidance                                       

The non-binding guidance issued by the Home Office to forces and their pensions administrators setting out a way of providing ID members with benefits closer to Remedy Compliant ones prior to the full implementation of Remedy. The guidance was withdrawn in November 2021.

 

ID Member                                        

A member in scope of Remedy who is subject to Immediate Detriment.

 

McCloud and Sargeant                      

The Judges’ and Firefighters’ cases on the Transitional Protections, which were the first to be heard and established via a Court of Appeal judgment that the Transitional Protections were unlawful discrimination on the grounds of age.

 

New Police Pension Scheme            

The pension scheme established by the police.

 

2006 (NPPS 2006)                              

Pensions Regulations 2006.

 

Non-Club Transfer                            

A transfer to or from a police scheme which is not a Club Transfer.

 

Normal Pension Age (NPA)              

The age at which a pension, other than a Deferred Pension or ill-health pension, is usually paid.  PPS 1987 has various pension ages. The Normal Pension Age in NPPS 2006 is 55. The Normal Pension Age in the 2015 CARE Scheme is 60.

 

Pensionable Service                         

The service which counts in the calculation of a pension, and during which pension contributions are made or are deemed to have been made.  

 

Police Pension Scheme                     

The pension scheme established by the police.

 

1987 (PPS 1987)                                

Pensions Regulations 1987.

 

Remedy                                             

The means by which the Government has chosen to remove the unlawful discrimination caused by the Transitional Protections and to ensure that no further unlawful discrimination is caused.

 

Remedy Period                                 

The period running from the start of 1 April 2015 until the end of 31 March 2022.  Members in scope of the Remedy will be able to make a choice of benefits in respect of their pensionable service during this period. 

 

Scheme Advisory Board                   

Also known as the SAB. The body established under the Police Pensions Regulations 2015 to provide advice (on request) to the Home Secretary on changes to the police schemes and to provide advice to the scheme managers in relation to the effective and efficient administration and management of those schemes.

 

State Pension Age                             

The age at which an individual can claim his or her state pension.

 

Tapered Protection                           

A protection introduced in April 2015 which allowed some members of PPS 1987 or NPPS 2006 to remain in that scheme beyond 1 April 2015 for a limited period of time. When Tapered Protection ceased, the member moved into the 2015 CARE Scheme.

 

Transitional Protections                   

The protections afforded to members of PPS 1987 and NPPS 2006 who were closest to retirement on 1 April 2012, as a consequence of the introduction of the 2015 CARE Scheme. Transitional Protection was either Full Protection or Tapered Protection.

 

Weighted Accrual                             

A formula to allow PPS 1987 members who become members of the 2015 CARE Scheme to benefit from the expectation of double accrual. The effect of the formula is that the average accrual rate which would have applied, if the member’s entire pensionable service (PPS 1987 and 2015 CARE Scheme) had been in the PPS 1987, is applied in the calculation of the PPS 1987 pension.

 

2015 CARE Scheme                           

The pension scheme established by the Police Pensions Regulations 2015.

 

Accrual Rate                                      

The rate at which pension builds up with increases of pensionable service (expressed as a fraction).

 

Aarons                                                

The legal case confirming unlawful discrimination under the police pension scheme as a result of the Transitional Protections.

 

Active Member                                 

A serving officer who is contributing to one of the police pension schemes and accruing benefits under that scheme in respect of current service.

 

Actuarial Reduction                          

A reduction made to pension benefits, applied when the pension is taken early, to recognise that the pension is in payment earlier and will therefore be paid for longer.

 

CARE Scheme                                    

A Career-Average Revalued Earnings scheme is a form of defined benefit pension scheme whereby the pension is based on pensionable earnings throughout a career, instead of at or near retirement.

 

Career Break                                    

A period of unpaid leave under the determination at Annex OO for Regulation 33 of Police Regulations 2003.

 

Club Transfer                                     

A transfer of pension rights between pension schemes which are part of the arrangement between public service schemes which enables the making of transfers on favourable terms.

 

CPI                                                      

The Consumer Prices Index; a measure of inflation.

 

Deferred Choice Underpin               

The method for the application of the Remedy adopted by Government following consultation. This is also known as the DCU and allows members in scope of the Remedy to make a choice of their benefits for the Remedy Period at retirement.

 

Deferred Pension                              

A benefit relating to the past service of members of one of the police pension schemes who are no longer Active Members but have not yet retired.

                                   

Defined Benefit Scheme                   

A scheme in which the benefits are defined in the scheme rules or regulations and accrue independently of the contributions payable and investment returns (where applicable). Most commonly, the benefits are related to members' earnings and the length of pensionable service at the date of retirement or leaving. Final salary and CARE schemes are both  defined benefit schemes.

 

Double Accrual                                 

A feature of the Police Pension Scheme 1987 whereby pension accrues at the rate of 1/60th for the first 20 years of pensionable service, but accrual then doubles to 2/60ths for the last ten years.

 

Final Salary                               

Police Pension Scheme 1987 (PPS 1987) and New Police Pension Scheme 2006 (NPPS 2006) members who become members of the 2015 CARE Scheme will have their PPS 1987 and NPPS 2006 benefits calculated by reference to their final salary at the point of retirement, and not by reference to their final salary when they move into the 2015 CARE Scheme.

 

Full Transitional Protection             

A protection introduced in April 2015 which enabled PPS 1987 and NPPS 2006 members to remain in those schemes and therefore not become members of the 2015 CARE Scheme. This protection has subsequently been found to have been unlawfully age discriminatory against younger members.

 

Immediate Detriment (ID)                

The disadvantage caused to members who are in scope of Remedy and who retire from service and take their pension before the point at which Remedy has been fully implemented. They will be retired in accordance with the existing governing regulations rather than being able to retire with Remedy compliant benefits and therefore will suffer this detriment. The benefits payable to such members will, once Remedy is fully implemented, be revisited and corrected to be fully Remedy compliant. 

 

ID Guidance                                       

The non-binding guidance issued by the Home Office to forces and their pensions administrators setting out a way of providing ID members with benefits closer to Remedy Compliant ones prior to the full implementation of Remedy. The guidance was withdrawn in November 2021.

 

ID Member                                        

A member in scope of Remedy who is subject to Immediate Detriment.

 

McCloud and Sargeant                      

The Judges’ and Firefighters’ cases on the Transitional Protections, which were the first to be heard and established via a Court of Appeal judgment that the Transitional Protections were unlawful discrimination on the grounds of age.

 

New Police Pension Scheme            

The pension scheme established by the police.

 

2006 (NPPS 2006)                              

Pensions Regulations 2006.

 

Non-Club Transfer                            

A transfer to or from a police scheme which is not a Club Transfer.

 

Normal Pension Age (NPA)              

The age at which a pension, other than a Deferred Pension or ill-health pension, is usually paid. PPS 1987 has various pension ages. The Normal Pension Age in NPPS 2006 is 55. The Normal Pension Age in the 2015 CARE Scheme is 60.

 

Pensionable Service                         

The service which counts in the calculation of a pension, and during which pension contributions are made or are deemed to have been made.  

 

Police Pension Scheme                     

The pension scheme established by the police.

 

1987 (PPS 1987)                                

Pensions Regulations 1987.

 

Remedy                                             

The means by which the Government has chosen to remove the unlawful discrimination caused by the Transitional Protections and to ensure that no further unlawful discrimination is caused.

 

Remedy Period                                 

The period running from the start of 1 April 2015 until the end of 31 March 2022.  Members in scope of the Remedy will be able to make a choice of benefits in respect of their pensionable service during this period. 

 

Scheme Advisory Board                   

Also known as the SAB. The body established under the Police Pensions Regulations 2015 to provide advice (on request) to the Home Secretary on changes to the police schemes and to provide advice to the scheme managers in relation to the effective and efficient administration and management of those schemes.

 

State Pension Age                             

The age at which an individual can claim his or her state pension.               

 

Tapered Protection                           

A protection introduced in April 2015 which allowed some members of PPS 1987 or NPPS 2006 to remain in that scheme beyond 1 April 2015 for a limited period of time. When Tapered Protection ceased, the member moved into the 2015 CARE Scheme.

 

Transitional Protections                   

The protections afforded to members of PPS 1987 and NPPS 2006 who were closest to retirement on 1 April 2012, as a consequence of the introduction of the 2015 CARE Scheme. Transitional Protection was either Full Protection or Tapered Protection.

 

Weighted Accrual                             

A formula to allow PPS 1987 members who become members of the 2015 CARE Scheme to benefit from the expectation of double accrual. The effect of the formula is that the average accrual rate which would have applied, if the member’s entire pensionable service (PPS 1987 and 2015 CARE Scheme) had been in the PPS 1987, is applied in the calculation of the PPS 1987 pension.

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