THE Government has left police officers in\u00a0\u201climbo\u201d\u00a0about the upcoming new pension scheme \u2013 beginning on 1 April.<\/p>\n
South Yorkshire Police Federation has hit out at the Home Office over its delay in publishing details about the new career average salary (CARE) scheme. \u201cWe are still waiting for the necessary details that go with a pension package and it is getting very late,\u201d said Neil Bowles, Federation chairman.<\/p>\n
He added: \u201cThe start date is less than 12 weeks away. People need to know what they can retire with so they can financially plan their future. But at the moment people are just in limbo.\u201d<\/p>\n
The Home Office released an update on New Year\u2019s Eve, which indicated that the majority of officers will pay slightly less than expected in pension contributions from April.<\/p>\n
Those on Tier 2, on a basic annual salary of more than \u00a327,000 but less than \u00a360,000, on the new career average salary scheme will be paying 13.44 per cent of their salaries into their pensions \u2013 lower than the 13.7 per cent that had been anticipated.\u00a0However, the contribution is believed to rise to 13.7 per cent after 2019.<\/p>\n
Tier 1 officers, on a basic annual salary of below \u00a327,000, will pay 12.44 per cent, while Tier 3 officers, who earn more than \u00a360,000, will pay 13.78 per cent.<\/p>\n
Officers who are under the protected final salary scheme or the tapered scheme were not affected by the update.<\/p>\n
Mr Bowles said that it was good news that the pension contributions would be 0.3 per cent cheaper than expected, but he added that \u201cit is not going to make much difference to people’s take-home wages at the end of the day\u201d.<\/p>\n
The new CARE scheme will replace the final salary scheme and a new pension age of 60 will be introduced.<\/p>\n
However, there will be no change in pension age or amount for those who on 1 April 2012 were aged 45 or over, or aged 38 or over and members of the 1987 police pension scheme with 10 years or less to go before retirement with a maximum 30-year pension.<\/p>\n