Contribution adjustments
At a glance
You will have been rolled back to your legacy scheme for the remedy period. This may have triggered a contribution adjustment because the contributions you paid may be different to those you should have paid in that scheme. If you are affected by remedy, the options for you, including any contribution adjustment will be shown in your remediable service statement.
• If you paid too little: you’ll owe extra contributions
• If you paid too much: you’ll get a refund
You can choose to pay or receive this adjustment before retirement or at retirement. Interest and tax relief are applied automatically. This ensures your pension is accurate for the scheme you end up in.
An explanation
What are contribution adjustments?
Each of the police pension schemes has a different contribution rate. When you were rolled back to your legacy scheme for the remedy period, the level of contributions you paid may no longer match the contributions that should have been paid.
Your remediable service statement will show you details of your specific contribution adjustment.
In summary:
- If you move back to the 1987 scheme you will owe contributions
- If you move back to the 2006 scheme you will be due a refund of contributions
The process of paying back or receiving a refund of the contribution is known as a contribution adjustment. The final amount is calculated and adjusted to allow for tax relief and interest.
Contribution adjustment animation
Find out more in this animation
NPCC Pension Podcast - Episode 6
Or find out more in our podcast episode.
How do the contribution rates compare?
This graph compares the contribution rates that applied during the remedy period between the various schemes.
Police pension scheme 1987
Police pension scheme 2006
Police pension scheme 2015
*Please note that since April 2026, the contribution rates in the 2015 scheme have changed.
When the adjustment is due
When do you need to pay your adjustment?
You can choose to settle your contribution adjustment before or at retirement. All payments must be made in full and from the same source.
Tax considerations
Why are adjustments made for tax?
When you make pension contributions into a UK pension scheme you receive tax relief on those contributions. This works by reducing the amount of your pay that is subject to income tax. The tax relief is given based on the rate of income tax that you pay.
When you pay your contribution adjustment it will be automatically adjusted to apply tax relief, this will be calculated based on your taxable earnings during the remedy period.
Interest payments
How is interest dealt with?
As time has passed since the remedy period, contribution adjustments are calculated to take into account interest on the payments.
If you owe money - Interest is applied as compound interest and is calculated at the NS&I Direct Saver rate from when the contributions were first due through to when they are paid.
If you are owed a refund of contributions the interest is calculated as:
- Up to 28 days after the initial RSS was issued - Interest is applied at a rate of 8% as simple interest
- From the 29th day from when the initial RSS was issued - Interest is applied at the NS&I Direct Saver rate, applied as compound interest
Interest will continue to be applied to any amount owing or owed up to the date of payment.