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.

A constable on £37,512 pays 12.44% = £4,667/year in pension contributions.

These contributions qualify for income tax relief — so the net cost to a basic-rate taxpayer is 12.44% × 0.80 = ~9.9% of gross pay.

What does the employer put in?

The employer (your force) contributes approximately 31% of your pensionable pay. On a £37,512 salary, that's around £11,700/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 £37,512 builds up £678/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, normal pension age is 60. You can take benefits from age 55 with a reduction applied.

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.