The total net revenue budget for the police service in 2006-7 is £10.0 billion. The projected figure for employer’s pension contributions is £1.13 billion (11 per cent.).
Under the new system of pensions financing introduced on 1 April 2006 police authorities now have a separate pensions account out of which retired officers’ pensions are paid. Where the cost of pensions in payment exceeds the level of employer and officer contributions paid into the pension account in any year the account is topped up with a grant from central Government; any surplus is recouped. A key benefit of this change is that it takes away from police authorities the responsibility for meeting the rising cost of pensions, as the number of pensioners increases, from the operational budget. Instead, the operational budget now only has to provide for the employer’s contributions.