Police officers contribution rates range between 12.2 and 15.05% of their pay. You are also able to take out an entirely separate personal pension plan at the same time as you contribute to the 1987 Scheme. When you retire, you are able to use your AVC fund to: If you die before retirement, your AVC cannot be used to provide a pension, but the AVC fund will be paid to the Police Force. Your contributions for increased benefits are calculated as a percentage of your pay and will increase every time as your pay increases. This is generally what you are paid Police pension scheme contributions are difficult to afford, why are they so high? You pay contributions towards the cost of your pension benefits. Police Pension Scheme 1987 Scheme … Tier 3 is those on a basic annual salary of more than £60,000 and over. You cannot purchase added years to cover career breaks if, on your return, you are able to accrue 30 years’ service by age 55. If you retire before your planned date of retirement, or leave the 1987 Scheme, you will be credited with the appropriate proportion of the increased benefits that you were purchasing. You are strongly recommended to seek Independent Financial Advice before taking any action. Accrued service in the 1987 Scheme, plus increased benefits purchased within the scheme, cannot exceed 40/60ths i.e. For those officers who are part time, the tier is determined by their whole time equivalent salary. The current position is that, unless you are a very high earner, you are normally able to pay 100% of your taxable earnings in a tax year in pension contributions and gain tax relief, although there may be limitations in any year in which your pension entitlement has increased substantially i.e. The AVC arrangement closed to new contributors from 1 October 2010. The you elect to pay regular contributions at any time while there are at least 2 years between your next birthday and your compulsory retirement age. If you have elected to pay death benefit contributions to provide life cover above the level provided by the 1987 Scheme for death in service i.e. This means that even existing contributors will NOT be able to increase their contributions, nor will you be able to transfer any other AVC benefits into your existing AVC fund. These are set as a percentage of your 'pensionable pay'. Police Pension Scheme 1987 (PPS 1987) You pay contributions towards the cost of your pension. HM Revenue and Customs place overall limits on pension contributions which are tax-deductible, but these limits are quite generous. If you die or retire on ill-health grounds and have bought or are buying added years, you will be credited with the total added years you originally elected to buy. Police Pension Scheme 1987 (PPS 1987) > Your Contributions: You pay contributions towards the cost of your pension benefits. If you entered into the Additional Voluntary Contribution (AVC) arrangement on or before 30 September 2010, you will be fully aware of its benefits and your options when you retire.