How Much is a Police Pension After 20 Years in the UK?

A police pension is one of the most valuable benefits for officers in the UK, providing financial security after retirement. The amount an officer receives after 20 years of service depends on several factors, including the pension scheme they are enrolled in, their final salary, and whether they continue serving beyond 20 years.

The UK police pension system has undergone several changes over the years, and different schemes apply depending on when an officer joined. Understanding how these schemes work can help officers plan for their retirement and make informed financial decisions.

Police Pension Schemes and Eligibility

Police officers in the UK are enrolled in different pension schemes depending on their start date. Each scheme has different rules regarding when pensions can be accessed and how they are calculated.

The Police Pension Scheme 1987 was available to officers who joined before April 2006. Under this scheme, officers could retire after completing 30 years of service with an immediate pension based on their final salary. Those who left after 20 years would not qualify for an immediate pension but would receive a deferred pension payable at the age of 60.

The Police Pension Scheme 2006 replaced the 1987 scheme for new joiners from April 2006 to March 2015. It raised the minimum pension age and changed the way pensions were calculated. Officers under this scheme need to serve until at least 55 to receive an immediate pension. If they leave after 20 years, their pension is deferred until retirement age, meaning they will not receive payments immediately upon leaving the force.

The Police Pension Scheme 2015 is the current scheme for officers who joined from April 2015 onwards. Unlike the previous schemes, which were based on final salary, this scheme operates on a career average revalued earnings (CARE) model. This means that rather than basing pension payments on an officer’s final salary, the pension is built up gradually throughout their career. Officers who leave after 20 years will have their pension deferred until they reach the state pension age unless they qualify for early retirement under specific circumstances.

How Much Will a Police Pension Be After 20 Years?

The amount an officer receives after 20 years of service depends on their scheme and final salary.

For officers under the 1987 scheme, the pension is calculated based on the final salary and years of service. An officer who completes 30 years is entitled to a full pension, typically two-thirds of their final salary. If an officer leaves after 20 years, they may receive around half of what they would have received after a full 30-year career. For example, if an officer’s final salary is £45,000, they could expect a pension of around £20,000 per year when they reach pensionable age.

Under the 2006 and 2015 schemes, pensions are generally lower due to changes in how they are calculated. Instead of being based on final salary, the pension is determined by career earnings and contributions. This means officers who leave after 20 years will have built up pension entitlements, but these will not be as generous as those under the 1987 scheme.

What Happens If an Officer Leaves the Force After 20 Years?

If an officer chooses to leave the police force after 20 years but before reaching full retirement age, they will not receive an immediate pension unless they qualify for ill-health retirement. Instead, their pension will be deferred, meaning they will start receiving payments when they reach their scheme’s retirement age.

Deferred pensions will still be increased in line with inflation, so their value is protected over time. However, leaving early means an officer may receive a lower pension than if they had served for the full 30 or 35 years required for a full pension entitlement.

Can Officers Increase Their Pension?

Officers who want to maximise their pension benefits can do so in several ways. Some choose to continue serving beyond 20 years to increase their final pension payout. Others make additional voluntary contributions to supplement their pension savings. Officers who leave before completing full service may consider transferring their pension into another scheme, depending on their career plans and financial goals.

Final Thoughts

A police pension after 20 years of service varies depending on the scheme an officer is enrolled in, their rank, and whether they retire immediately or defer their pension until later. While the 1987 scheme offers some of the highest payouts for long-serving officers, those in the 2006 and 2015 schemes have different rules that affect how much they receive and when they can access their pension.

Understanding the details of each pension scheme is essential for officers planning their retirement. For a more accurate estimate of pension entitlement, officers can request a forecast from their Police Pension Administrator or seek professional financial advice.