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Police: Pensions

Volume 495: debated on Wednesday 8 July 2009

To ask the Secretary of State for the Home Department (1) if he will estimate the average first year retirement pension payment of a police officer retiring after 30 years service in each of the principal ranks of the police service in 2009; (282796)

(2) how many retired police officers are aged (a) less than 50, (b) between 50 and 55, (c) between 56 and 60, (d) between 61 and 65 and (e) over 65 years old;

(3) what the average value of pension payments to retired police officers aged (a) under 50, (b) from 51 to 55, (c) from 56 to 60, (d) from 61 to 65 and (e) more than 65 years old was in the latest period for which figures are available;

(4) what the cost of payments made to police pensioners (a) under 50, (b) between 51 and 55, (c) between 56 and 60, (d) between 61 and 65 and (e) aged 65 and more was in the latest year for which figures are available.

Information on the average first-year police pension is not held centrally and data on the accrued pension rights of retiring officers by rank are not currently included in the valuation data held on the police pension schemes by the Government Actuary’s Department. Therefore it is possible to give only a broad estimate of the average annual pension payment based on the salary scale for each main rank. The following information is based on the pay scales currently in place (since 1 September 2008, effective until 31 August 2009).

£

Rank assumed average final salary

Estimated average pension

Constable

34,707

17,354

Sergeant

37,098

18,549

Inspector

46,977

23,489

Chief Inspector

50,211

25,106

Superintendent

64,095

32,048

Chief Superintendent

72,717

36,359

Assistant Chief Constable/Commander

94,851

47,426

For the rank of constable, it is assumed that a retiring officer is at the top of the pay range. For other ranks, the middle of the pay range is used. It is also assumed that the retiring officer will elect to commute the maximum amount of pension allowable in order to receive a lump sum payment on retirement, as the majority of retiring officers do elect to receive a lump sum. This would mean the officer’s first-year pension payment would be 50 per cent. of his or her final salary. Given that the factors for calculating the commutation of a lump sum payment are based on the age of each officer, it is not possible to estimate an average amount for a lump sum payment.

The salary level of an officer of rank deputy chief constable (deputy assistant commissioner in the Metropolitan police) and above depends on the police force in which the officer serves. In the light of this, and the relatively small number of senior officers, estimating an average pension payment for these ranks would not provide an accurate reflection of the situation on retirement of an officer and could be misleading.

From the valuation data on the police pension scheme held by the Government Actuary’s Department, as at 31 March 2008 the total number of retired police officer pensioners, split by age, is broadly as follows (figures are rounded to the nearest 100)

Group

Number

Less than age 50

9,300

Between age 50 and 55

19,800

Between age 56 and 60

19,000

Between age 61 and 65

18,300

Over age 66

34,800

Information on the cost and value of police pensions broken down into different age groups is not held centrally.