Police Pension Scheme 2015 UK 2026/27: CARE, Tiers

The Police Pension Scheme 2015 (PPS 2015) is the defined-benefit pension for all UK police officers who joined after 1 April 2015. It uses CARE accrual, tiered contributions, and is working through the McCloud remedy. PPS 2015 also has unique features distinguishing it from other public-sector schemes, including a commutation factor for tax-free lump sums and enhanced ill-health rights. This guide covers the 2026/27 position.

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At a glance

Type: Defined Benefit (CARE - Career Average Revalued Earnings since 2015).
Accrual rate: 1/55.3 of pensionable pay per year (more generous than NHS 1/54 or Teachers 1/57).
Revaluation: CPI + 1.25% during active service.
Employer contribution: 30.3% of pensionable pay (one of the highest in the UK public sector).
Employee contribution: tiered 12.44% to 14.34% based on actual earnings.
Normal Pension Age: 60 for police officers (lower than other public-sector schemes).

Contribution tiers (2025/26 table — the latest we have verified)

The table below shows the 2025/26 bands. The salary thresholds are reviewed each April (and a structure change applied from 1 April 2026), so check your force pension administrator or gov.uk for the current 2026/27 breakpoints before relying on a specific tier.

Pensionable salary	Contribution rate
Up to £27,818	12.44%
£27,819 to £56,469	13.44%
Above £56,470	13.78% - 14.34%

The whole earnings are charged at the tier rate. Police pension contributions are notably higher than other public-sector schemes (Civil Service Alpha tops at 8.05%, NHS at 14.5%) but are matched by a more generous employer contribution and a lower Normal Pension Age.

How the CARE accrual works

Each year you accrue 1/55.3 of your pensionable pay as a pension entitlement. The accrued amount is revalued annually by CPI + 1.25% during active service.

Worked example: career-average pensionable pay of £45,000 across 25 years.

Annual accrual: £45,000 / 55.3 = £814/year of pension
Total over 25 years (with revaluation): approximately £21,000-£24,000/year

Plus the State Pension at age 67. Police officers typically retire at 60 (Normal Pension Age) and draw their PPS pension immediately, with the State Pension following 7 years later.

The McCloud remedy

The 2018 McCloud judgment applied to PPS 2015 alongside other public-sector schemes. Officers who were active members of PPS 1987 or PPS 2006 on 31 March 2012 are affected. The remedy gives a choice at retirement between:

The legacy scheme (PPS 1987 or PPS 2006) for the period 1 April 2015 to 31 March 2022, OR
PPS 2015 for the same period.

PPS 1987 was a final salary scheme (1/60 accrual + double accrual after 20 years) and is often more generous than PPS 2015 for those whose final salary was much higher than their career average. Police Pensions is issuing Remedial Service Statements showing both options.

Commutation - the tax-free lump sum

PPS 2015 allows you to commute up to 25% of your pension for a tax-free lump sum at retirement. The commutation factor is 12:1 (every £1/year of pension forgone yields £12 of lump sum).

Worked example: officer retiring on £25,000/year accrued pension.

Maximum commutation: £25,000 x 25% = £6,250/year of pension
Lump sum: £6,250 x 12 = £75,000 (tax-free)
Remaining annual pension: £18,750/year (taxable)

Whether to commute is a personal financial decision - the trade-off is between immediate liquidity (tax-free) and long-term income stability.

Ill-health early retirement (tiered)

A distinguishing feature of PPS 2015: tiered ill-health benefits.

Lower tier: ill-health early retirement with standard accrued pension paid immediately.
Higher tier: ill-health early retirement with an enhancement (additional service credited) paid immediately.

The tier is determined by an independent medical assessment. Higher-tier ill-health pensions are particularly valuable for officers leaving service due to job-related injuries.

Annual Allowance - Senior Officers face it

Inspectors and above routinely face Annual Allowance issues. The mechanics mirror NHS senior clinicians:

A pay rise increases your Pension Input Amount (PIA) by 16x the inflation-adjusted increase in accrued benefits.
Promotion (e.g. Sergeant to Inspector) triggers a substantial PIA spike.
Combined with high CPI, the PIA can exceed the £60,000 standard Annual Allowance.

Police Pensions allows Scheme Pays for AA charges above £2,000.

Death-in-service benefits

PPS 2015 includes substantial death-in-service:

Lump sum: 3 times pensionable salary (tax-free).
Spouse/partner survivor pension: 50% of your accrued pension.
Children's pensions: tiered support for dependent children.

These benefits are factored into the overall scheme value alongside the retirement pension.

How PPS 2015 shows on your payslip

A correctly-structured police payslip shows:

Pensionable pay - basic + most permanent allowances (London weighting IS pensionable; some specific allowances are not).
Pension contribution - the tiered % of pensionable pay deducted before income tax (net pay arrangement).
PPS 2015 reference number - your unique scheme membership number.

The pension deduction reduces your gross pay for income tax purposes, giving automatic tax relief at your marginal rate. Police pension contributions of 12.44%-14.34% are a substantial chunk of pay - but the value at retirement is correspondingly substantial.

When to talk to a pension specialist

For routine PPS 2015 membership, no specialist advice is needed. A regulated pension adviser earns their fee when:

You're a Senior Officer (Inspector+) facing repeated AA charges.
You need to make the McCloud remedy choice at or near retirement.
You're considering commutation at retirement (the lump-sum vs ongoing-pension trade-off).
You're approaching ill-health early retirement and need to understand the tiered options.
You're contemplating transferring out of PPS 2015 (usually wrong, but sometimes considered after leaving the police).

Police Pensions Scheme administration provides member information at policepensions.org.uk. For regulated advice, an FCA-authorised pension adviser experienced with police schemes is essential.

Disclaimer

PayslipIQ provides automated educational guidance based on the figures you supply. It is not regulated pension or financial advice. PPS 2015 rules are technical and interact with PPS 1987 / PPS 2006 legacy schemes via McCloud - for substantial decisions especially around commutation, ill-health, AA charges, or transfer out, consult a regulated FCA-authorised pension adviser experienced with police pensions.