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 from 12.88% to 14.22% on actual pensionable pay, under the structure that applies from 1 April 2026.
- Normal Pension Age: 60 for police officers (lower than other public-sector schemes).
Contribution tiers (from 1 April 2026)
A new contribution structure applies to scheme years starting on or after 1 April 2026, with three bands rather than the old set, and - importantly - the band is now set by your actual pensionable pay in the previous scheme year rather than your full-time-equivalent salary. That change is worth real money to part-time officers, who were previously banded as though they worked full time.
| Relevant pay | Full member rate | Reduced member rate |
|---|---|---|
| £37,035 or less | 12.88% | 10.38% |
| Over £37,035 and under £79,588 | 13.88% | 11.38% |
| £79,588 or more | 14.22% | 11.72% |
Source: Home Office report to Parliament on the police pension member contribution structure, giving the rates for scheme years starting on or after 1 April 2026.
The whole of your pay is charged at the tier rate, not just the slice above the threshold. Police contributions are the highest of the major public-service schemes - Civil Service alpha tops out at 8.05% and the NHS scheme at 12.5% - but they buy 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 × 25% = £6,250/year of pension
Lump sum: £6,250 × 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 12.88% to 14.22% 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.
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Check my payslip freePayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.