Information
Latest News & Updates
Two new useful information documents have ben added to the website: –
How your PPS 2015 scheme benefits build up is a document designed for members to explain how the PPS 2015 scheme works.
How your PPS 2006 or PPS 1987 legacy scheme benefits are calculated is a document for members to explain how their legacy scheme benefits are calculated.
Both of these documents will support information coming later in the year in the Annual Benefit Statement – Remediable Service Statement (ABS-RSS) that will be issued to active and deferred members.
A new member remedy factsheet has been added to the website: –
Unauthorised Payments is a document for members to explain what an unauthorised payment is and when it occurs
Although an update on immediate choice remediable service statements to members has been provided, members need to be aware that the delays being experienced are solely due to a lack of clarity, from both HM Revenue & Customs (HMRC) and HM Treasury (HMT), about some specific technical issues which affect some members.
Since January 2024, the National Police Chiefs’ Council (NPCC) have been meeting weekly with HMT to work through these issues which are now further delayed due to the General Election. NPCC are continuing to progress various options and solutions that will enable the best customer journey.
There are two issues, both of which are about unauthorised payments, they are: –
1) Interest payments that are to be paid on arrears of pension and lump sum.
2) How any new unauthorised payment is calculated when compared to the original retirement.
The delays in getting a resolution to these issues is likely to mean a temporary move away from the published remedy timeline, but as soon as the issue is resolved the timeline will be re-established.
On 4 January 2024, HMRC advised that: –
– Interest paid between the commercial rate and the 8% rate on arrears of pension and lump sum remedy payments would be treated as unauthorised, and
– Interest paid on unauthorised amounts is all unauthorised.
Pension administrators had to wait for a new calculator to determine this commercial rate, as it could not be calculated manually. During this time, NPCC also sought clarity on how unauthorised amounts would be treated.
On 28 April 2024, HMRC amended their previous advice to confirm that: –
– They had removed the need to calculate the commercial rate, and
– Interest paid on authorised amounts is all authorised, and
– Authorised payments will be the interest payment paid on the arrears of annual pensions and, additional lump sum payments where the original lump sum was authorised (i.e. the lump sum was within HMRC limits).
– Interest paid on unauthorised amounts is all unauthorised.
The Interest Payment FAQs on the website have been updated to reflect this information and this was confirmed in a news item published on 5 June 2024
In April 2024, while discussing the interest issue with HMRC, a new issue was discovered with the tax rectification legislation that was laid for remedy.
HMRC confirmed that specific legislation had not been laid that would allow schemes to “offset” the new unauthorised payment against the unauthorised payment that occurred at the original retirement date.
Without a resolution from HMT and HMRC on this issue, it will mean that members will end up paying more in unauthorised payment tax charges than they would have done if they had received these benefits at their original retirement date
This issue only affects immediate choice members who received an unauthorised lump sum from the 1987 scheme when they retired. These members will have paid an unauthorised payment tax charge on some of their lump sum.
– Tapered or unprotected 1987 PPS members who received the maximum scheme lump sum and had an unauthorised payment tax charge.
Administrators will be unable to progress these cases until there is a resolution from HMT and HMRC.
There are certain groups of immediate choice members that will not be affected by these issues: –
– Members that retired as a fully protected member.
– Members that retired and could only commute 2 ¼ times their annual pension.
– Members that chose to keep their lump sum within HMRC limits.
– Members that retired with 2006 PPS membership.
Although administrators are looking to progress these cases where they have all the necessary information from the force, it does not necessarily mean that members will receive their immediate choice remediable service statement imminently.
An amendment has been made to a member remedy factsheet: –
Update on immediate choice remediable service statements to clarify the status of the timeline, the types of tax previously paid and who is not affected.
On 14 June 2024, HMRC published a public service pension remedy newsletter which explains the improvements that are being made to the HMRC Digital Service whilst it is “shuttered”.
The newsletter confirms that HMRC expect to have stage one of the development completed and the service back online by mid July 2024, with further developments due in September 2024.
If you are retiring and you need to make a submission about your pensions tax, then HMRC have provided details about an interim manual process for members.
A new animation video has been added to the website: –
The Contributions Adjustment video is for deferred choice members (active and deferred members) to help explain the contribution adjustment, with more information available in the Contribution Adjustment Member Remedy Factsheet.
New functionality has been added to the website: –
A News Carousel alerting readers to the very latest updates or important news items has been added to the homepage of the website.
A Latest News & Updates page has been added to the website, providing a list of all amendments and new content that has been created since 1 October 2023.
An amendment has been made to five FAQs
Clarification of policy from HM Revenue & Customs and HM Treasury has confirmed that where interest is paid at the 8% rate on arrears of pension and lump sum, the commercial rate of interest does not apply. The following FAQs have been amended to reflect the current position.
What is tax on interest payment? Which includes “Am I affected?”
What is the Scheme Administrator Member Payment?
Interest on arrears of annual pension
An amendment has been made to a useful document: –
Age discrimination project update to make an amendment to the active members affected by remedy.
An amendment has been made to a member remedy factsheet: –
Update on immediate choice remediable service statements to add in about the pre-election period after the General Election was called.
An amendment has been made to a useful document: –
Age discrimination project update to make some minor amendments.
A new useful document and a member remedy factsheet have been added to the website: –
Age discrimination project update is a document setting out an update of the remedy implementation project. It details the challenges that are being faced by the Police Pension Scheme and what is being done to manage this situation.
Update on immediate choice remediable service statements is a document for immediate choice members which provides an update about the provision of their remediable service statements and some of the technical policy issues that are currently being worked through.
A new member remedy factsheet has been added to the website: –
Compensation is a document for members who wish to make a claim for compensation as a result of remedy, it provides some guidance and sets out the process for claims.
Compensation claim form is the claim form that the member needs to complete to make a claim for compensation.
On 11 April 2024 the service to calculate the Public Service Pensions Remedy Adjustment was “shuttered” by HM Revenue and Customs (HMRC) due to an urgent technical issue.
Members are advised that if they need to make a submission to HMRC about their pensions tax within the remedy period that in the first instance they should email publicservicepensionsremedy@hmrc.gov.uk, putting “PSPR submission – police” in the subject line, alternatively they can call 0300 123 1079 and select option 1. HMRC will then be able to advise how to make a manual submission.
A new FAQ has been added to the website: –
How are transfers-in dealt with in the Police Scheme for remedy? Which also includes questions about “I transferred in during the remedy period, how is my transfer dealt with in the legacy scheme?” and “I did not transfer in during the remedy period, but I now want to make a retrospective contingent decision to transfer a benefit into the legacy scheme.
A new member remedy factsheet has been added to the website: –
Remedy timeline a document setting out the timeline for members of when they can expect to receive their remediable service statements.
A new and amended member remedy factsheet have been added to the website: –
Beneficiaries is a document for beneficiaries of members who were affected by remedy and have passed away.
Contingent Decisions the guidance document for members has been updated to include the information about a transfer contingent decision.
11 new FAQs have been added to the website: –
Tax on lump sum FAQs
Lump sum payments Which also provides specific information for each of the police pension schemes.
What is an unauthorised payment? Which also includes an explanation of “what is the unauthorised payments charge?”.
Tax on interest FAQs
Clarification about a late change of policy from HM Revenue and Customs and HM Treasury affecting the 8% interest payments made to underpaid annual pensions and lump sums for immediate choice members.
What is tax on interest payment? Which also includes “Am I affected?”.
What is the commercial rate of interest?
What is the Scheme Administrator Member Payment?
Interest on arrears of annual pension
Interest on authorised amount of additional lump sums
Interest on unauthorised amount of additional lump sums
Individual circumstances FAQs
When will I be asked to make a contingent decision?
Why am I receiving a refund of my Added Pension contributions?
Am I eligible to buy additional service as a contingent decision? Which also includes the relevant eligibility for both the 1987 and the 2006 police pension schemes.
A new member remedy factsheet has been added to the website: –
Added Pension compensation payments is a document for members who paid added pension payments into the 2015 police pension scheme during the remedy and explains what must happen to those payments as part of the rollback to the legacy scheme.
Two new member remedy factsheets have been added to the website: –
Contribution adjustments is a document for all members affected by remedy and outlines some of the key points about their contribution adjustment, such as when to make the adjustment and considerations about tax relief and interest.
Divorce is a document for members that have had a Pension Sharing Order made against their pension during the remedy period.
Three new FAQs have been added to the website: –
How do I calculate my pensions tax charge? Which also includes details for different groups of members “if you retired between 1 April 2015 and 30 September 2023”, “If you retired between 1 October 2023 and 6 October 2024”, “what happens after I’ve made my choice?” and “If you are an active or deferred member”
An amendment has been made to an FAQ on the website: –
How is interest applied? A revised policy position from HM Revenue and Customs and HM Treasury has identified that the 8% interest that is to be applied to underpayments of pension and lump sums may be subject to tax.
A new member remedy factsheet has been added to the website: –
Ill-health retirements is a document for members that retired on ill health grounds within the remedy period, explaining the choices available to them, why an ill health re-assessment may be required and what that means.
An amendment has been made to an FAQ on the website: –
Why do I have to wait until 31 March 2025 to receive my choice? Due to operational issues related to producing the immediate choice remediable service statements, the timetable has been extended for members within the first bullet point from 31 March 2024 to 31 July 2024.
A new animation video has been added to the website: –
Understanding your choices This is a video for immediate choice members to help explain their remediable service statements, which will be issued by 31 March 2025.
An amendment to correct an error has been made to an FAQ on the website: –
Why do I have to wait until 31 March 2025 to receive my choice? The second bullet point was incorrectly showing 1 January 2024 to 31 July 2024, this has been corrected to show 1 January 2024 to 30 November 2024.
A new FAQ has been added to the website: –
A new member remedy factsheet has been added to the website: –
Contingent Decisions is a document for members who wish to make a Contingent Decision claim and provides some guidance and sets out the process for claims.
Contingent Decisions claim form is the claim form that the member needs to complete to make a Contingent Decision claim.
A new FAQ has been added to the website: –
What happens to my 2015 pension if I retire from the 1987 legacy scheme before age 55? This also covers questions about “Compulsory Retirement Ages” and the “Retire and Return” options.