Police Pension 2024: What You Actually Contribute and What You Get

Which pension scheme are you in?

Most officers who joined after April 2015 are in the Police Pension Scheme 2015 (PPS 2015), a Career Average Revalued Earnings (CARE) scheme. Officers who joined before that date were in the PPS 1987 or PPS 2006 and may have been transitioned.

This article focuses on PPS 2015, which covers the majority of serving officers.

How much do you contribute?

Your contribution rate depends on your pensionable pay and is charged on the full amount — it's not marginal like income tax.

Rates effective 1 April 2026 — Home Office consultation response, November 2025.

A constable on PP3 (£33,789) pays 12.88% = £4,352/year in pension contributions.

These contributions qualify for income tax relief — so the net cost to a basic-rate taxpayer is 12.88% × 0.80 = ~10.3% of gross pay.

What does the employer put in?

The employer (your force) contributes approximately 31% of your pensionable pay. On a constable PP3 salary of £33,789, that's around £10,475/year going into your pension pot on your behalf. This is money you'd never see in a private-sector role.

How does the CARE scheme work?

Each year of service, you build up a pension equal to 1/55.3 of your pensionable pay for that year. That amount is then revalued annually by CPI + 1.25%.

Example: A constable on PP3 (£33,789) builds up £611/year of annual pension in one year of service. After 30 years' service at rising pay, total pension accrual might be around £20,000–£25,000/year (before any commutation).

When can you retire?

Under PPS 2015, your normal pension age is your State Pension Age — currently 66, rising to 67 and then 68. This linkage to the State Pension Age was one of the biggest and most resented changes from the older PPS 1987 and 2006 schemes, under which officers could retire much earlier. You can take benefits from age 55 (rising to 57 from April 2028) with an actuarial reduction for drawing them early. Use the police pension calculator to project your pension at different retirement ages.

Commutation

At retirement you can take a lump sum by giving up annual pension — £1 of annual pension buys you £12 of lump sum. Many officers commute some pension to clear a mortgage or fund early retirement spending.

Should you opt out?

Almost never advisable. If you opt out you lose the 31% employer contribution — that's an immediate 31% pay cut on your deferred compensation. The contribution feels large but the employer match alone makes it one of the best deals in employment.

The only scenario where it might make sense to consider alternatives is if you are very close to the Lifetime Allowance (now abolished) or have specific pension planning advice.

Key takeaway

The police pension is expensive but exceptionally valuable. The contribution rates are high by private-sector standards, but so is the employer contribution and the certainty of a guaranteed income in retirement. Run our calculator to see what your specific contributions mean for your monthly take-home, or read how pension contributions are calculated for a full breakdown of the methodology.

Edge cases worth knowing

Opting out and back in: If you opted out and later re-join the pension scheme, your pension accrual restarts from re-joining. You don't get credit for the opted-out period. The missed employer contribution — approximately 31% of your pensionable pay for every year you were opted out — is gone permanently.

PPS 2006 transitional officers: Officers who were in PPS 1987 or PPS 2006 before the 2015 transition have a mixed pension — some years under the old rules, some under CARE. Your total pension at retirement will be calculated across both segments. Contact your force pension team for a projection that covers both schemes.

Sick leave and pension: Pension accrues during sick leave on full pay and on half pay. During periods of no-pay sick leave, no pension accrues unless you make voluntary contributions to cover the gap. It's worth factoring this into long-term planning if you're off for an extended period.

The CARE interaction with pay rises: Each year's pension accrual is based on that year's actual pensionable pay. A pay rise part-way through the year means you build two different accrual amounts — one for the pre-award months and one for the post-award months. The annualised average isn't a shortcut your pension administrator uses; the actual monthly figures are.

Frequently asked questions

Does overtime count toward the PPS 2015 pension?

No. Overtime is not pensionable under PPS 2015. It doesn't contribute to CARE pension accrual and no pension contributions are deducted from overtime payments. Your pension builds solely from your basic pensionable pay and certain allowances (such as London Weighting for Met officers).

What happens to my pension if I leave the police before retirement age?

If you have more than 2 years' qualifying service, your pension is preserved and paid from your normal pension age (your State Pension Age). It continues to be revalued by CPI+1.25% each year until you draw it. Officers who leave with fewer than 2 years' service get their contributions refunded.

Can I take my police pension early?

You can access benefits from age 55 with an actuarial reduction. The reduction is based on how many years early you take the pension. At 5 years early, the reduction is approximately 20–25% of the annual pension, permanently applied. The exact reduction factors are set by the Government Actuary — your force pension team can give you the current figures.

Is the police pension affected by salary sacrifice?

Salary sacrifice arrangements (like AVC contributions or cycle-to-work schemes) reduce your pensionable pay if structured as a true pay reduction — which affects your CARE pension accrual for that year. If your AVC is via an additional contribution (not salary sacrifice), pensionable pay and accrual are unaffected. Check the specific arrangement with your force payroll.

What's the pension contribution rate if I work part-time?

The contribution rate is based on your actual pro-rated pensionable pay. A 0.8 FTE officer on a PP5 salary receives 80% of £37,737 = £30,190 in actual pay — which falls in the 12.88% tier (below £37,035). So they pay a lower contribution rate than a full-timer at the same pay point. The trade-off is lower pension accrual on the pro-rated salary.

Does the pension lump sum at retirement count as income for tax purposes?

No. The commuted lump sum taken at retirement is tax-free. The annual pension income you receive is taxable as earned income in retirement, though typically at a lower rate if your total retirement income is below the higher-rate threshold. The standard personal allowance applies.