Your contributions are deducted from your pay before income tax, which means that you receive income tax relief at its highest rate. You also pay a lower rate of National Insurance because each Police scheme is contracted out of the State Second Pension.
You can find employee contribution bandings relevant to you in the tables below.
Rates apply from 1 April 2017 to 31 March 2018
2015 Police Pension Scheme
|Basic annual salary||Member contribution rate|
|£27,000 or less||12.44%|
|More than £27,000 but less than £60,000||13.44%|
|£60,000 or more||13.78%|
Police Pension Scheme (PPS) 1987 Scheme and New Police Pension Scheme (NPPS) 2006
|Basic annual salary||PPS|
|£27,000 or less||14.25%||11.00%|
|More than £27,000 but less than £60,000||14.25%||12.05%|
|£60,000 or more||15.05%||12.75%|
Employer contribution rate
The actuarial valuation has set the employer contribution rate for all three police pension schemes from 1 April 2015 at 21.3% of pensionable pay. The difference between the old employer contribution rate of 24.2% and the new rate will be retained by the Exchequer.
This means that the police pensions top up grant will be reduced by the difference between the contribution rates of 24.2% and 21.3%. Therefore, forces should budget as though there were an employer contribution rate of 24.2% of pensionable pay for 2017/8.