01. The Police Pension in One Page
If you are a serving police officer in 2026, you are likely enrolled in the 2015 Career Average Revalued Earnings (CARE) scheme. Unlike the older "final salary" schemes of 1987 and 2006, the modern scheme doesn't just look at what you are earning on the day you retire. Instead, it builds your pension pot piece by piece, year by year, based on exactly what you earn throughout your entire policing career.
The Core Mechanics
- The 1/55.3 Rule: You bank exactly 1/55.3 of your pensionable pay for every year you work.
- Retirement Age 60: You can take your pension in full without reductions at age 60.
- Contributions: You pay between 12.44% and 13.78% of your gross pay.
The Critical Details
- Growth (CPI + 1.25%): Your banked pension grows faster than inflation while you serve.
- No Automatic Lump Sum: Unlike 1987, you must trade in annual income to get a cash lump sum.
- McCloud Remedy Impact: Pre-2012 joiners have a complex choice regarding 2015-2022 service.
Despite the high personal contribution rates, it remains one of the strongest public sector pensions in the UK. The employer contribution (invisible to you) is vast, pushing the total value well beyond almost any private sector equivalent.
02. How the CARE Scheme Actually Works
To understand the average police pension, you must first understand the machinery underneath it. CARE stands for Career Average Revalued Earnings.
Instead of reaching the rank of Chief Inspector in your final year and having your entire 30-year pension based on that high final salary, the 2015 scheme treats every single year as an isolated block of value.
What "Career Average" Means
Every year on April 1st, the scheme looks at your exact pensionable pay for the previous 365 days. It takes that number and divides it by 55.3. The result is placed into your virtual "pension pot." This pot represents the actual annual cash you will receive in retirement.
Example: Constable Year 1
£29,907 pay
Divided by 55.3 =
£540.81
Added to annual pension for life.
Example: Top Scale Constable
£48,231 pay
Divided by 55.3 =
£872.17
Added to annual pension for life.
What "Revalued Earnings" Means
If you joined at 20, that £540 you banked in Year 1 would be destroyed by inflation by the time you retired at 60. To prevent this, the "R" in CARE steps in.
As long as you remain an active, serving police officer, your entire banked pension pot is revalued every single year by CPI (inflation) plus 1.25%. This is critical. Because it guarantees your banked pension grows faster than basic inflation, those early, lower-paid years compound aggressively over a 30-year career.
Essential Definition: Pensionable Pay
Your division by 55.3 only applies to Pensionable Pay. This generally includes basic salary and permanent allowances (like London Weighting or Competence Related Threshold Payments). Overtime is completely excluded. If you earn £10,000 in overtime this year, your 1/55.3 accrual ignores it entirely. See our Police Pay Scales 2026 reference to check your exact spine point base.
03. Contribution Rates (What You Pay)
Membership in the 2015 scheme is expensive. The UK Government sets tiered contribution rates based on your annualized full-time equivalent pay. As your rank and salary step increases, your mandatory pension deduction increases as well.
| Annualized Pensionable Pay | Contribution Rate |
|---|---|
| £27,000 or less | 12.44% |
| £27,001 to £56,000 Most Constables & Sergeants | 13.44% |
| More than £56,000 Inspectors and above | 13.78% |
It is a common misconception that paying 13.44% directly shrinks your take-home pay by that exact percentage. Because pension contributions are taken before tax, they actively reduce your taxable income. If you are a higher-rate (40%) taxpayer, putting £100 into your pension only genuinely costs your bank account roughly £60.
Reality Check: The Hidden Employer Cost
We often complain about the 13.44% cost. However, a private sector employee paying 5% into a defined-contribution pot relies entirely on the stock market to fund their retirement. To guarantee the payout trajectory of the Police Pension, the Home Office/Force employer contribution is currently calculated at over 30% of your salary. This is effectively "invisible pay" that never hits your payslip, but forms a massive part of your true total reward package.
04. Retirement Age & Early Pensions
The biggest point of friction in the 2015 scheme compared to the old 1987 scheme is age. The 1987 scheme allowed officers to retire after an exact length of service (30 years) regardless of age. If you joined at 19, you were done at 49.
The 2015 Scheme's Normal Pension Age (NPA) is firmly set at 60.
Actuarial Reduction (Retiring from 55)
You are legally permitted to take your police pension early, as soon as you hit age 55. However, if you choose to take it between 55 and 59, your pension is hit with an Actuarial Reduction.
Because you are pulling the pension out early, the Treasury assumes they will be paying you for more years before you die. To balance the books, they permanently reduce the annual value of the pension for the rest of your life.
| Retirement Age | Approximate Reduction Impact |
|---|---|
| Age 60 (NPA) | No Reduction (0%) |
| Age 59 | ~ 4.5% cut |
| Age 57 | ~ 13% cut |
| Age 55 (Maximum early) | ~ 20% to 22% cut |
*Note: Exact actuarial reduction factors are updated periodically by the Government Actuary's Department (GAD) and vary slightly by month of birth and prevailing economic conditions. This table is strictly illustrative.
If you leave the police service entirely before retirement (e.g., career change at age 40), your pension is "Deferred". A deferred 2015 pension is normally payable at your State Pension Age (SPA), which is currently climbing to 67 and 68. You can also take a deferred pension from age 55, but the actuarial reduction applied to a deferred pension is significantly more aggressive than for an active serving officer retiring early.
05. Lump Sums & Commutation
One of the most frequent questions from serving officers is: "How big is my lump sum?"
The 1987 scheme was famous for delivering a massive, automatic tax-free lump sum on the day of retirement, alongside a substantial annual pension. The 2015 scheme does not have an automatic lump sum.
If you want a cash lump sum in the 2015 scheme, you must "commute" (trade in) a portion of your annual pension income to get it.
The 12:1 Commutation Rate
The rules of the 2015 Scheme allow you to give up up to 25% of your total pension pot in exchange for a tax-free lump sum. The exchange rate is strictly fixed by HM Treasury at 12 to 1.
For every £1 of annual pension income you give up, you receive £12 as a tax-free cash lump sum.
Commutation Example
You decide to commute £5,000 of your annual pension...
Should you commute? This is the most complex financial decision a retiring officer faces. We cannot give financial advice, however, mathematically, the 12:1 rate is often considered "poor value" compared to what actuaries would expect. If you live longer than 12 years post-retirement (which is highly likely), you will mathematically "lose" money by having taken the lump sum.
However, mathematics doesn't pay off a mortgage. Many officers commute the maximum allowable amount because they need the cash injection to clear debts, buy property, support children, or simply because they value £80k in cash at age 55 more than £6.5k extra income at age 80.
Critical Warning: Tax Free Limits
HMRC sets a strict lifetime limit on tax-free lump sums. If you commute a massive amount of pension (which is common for those combining 1987 scheme benefits via McCloud), you may breach the HMRC tax-free threshold. Anything above that threshold will be hit with a severe "Unauthorised Payment" tax charge before it ever reaches your bank account.
06. Realistic Career Scenarios
To move away from abstract rules and into reality, let's look at six detailed projections. These models assume a completely standard career trajectory entirely within the 2015 CARE scheme. They use current (2025/2026) pay scales acting as a baseline, assuming standard CPI inflation tracking throughout the career. These are illustrative estimates, not guaranteed quotes.
1. The 25-Year PC (Retiring at 55)
A career constable who joins at 30 and decides they cannot continue frontline policing past age 55. They take their pension early with a severe actuarial reduction.
- Years Served 25 Years
- Career Path Top Step PC
- Reduction ~22% Actuarial Cut
Max Pension (No Lump Sum)
£16,400 / year
With Standard Commutation
£13,800 /yr + £31,200 cash
2. The 30-Year PC (Retiring at 60)
A career constable who joins at 30 and manages to serve a full 30 years to reach the Normal Pension Age of 60. No actuarial reductions apply.
- Years Served 30 Years
- Career Path Top Step PC
- Reduction 0% (NPA Reached)
Max Pension (No Lump Sum)
£25,200 / year
With Standard Commutation
£21,000 /yr + £50,400 cash
3. The 35-Year Sergeant
Joined at 25, promoted to Sergeant reasonably early, and serves until 60. The combination of 35 years of CPI+1.25% compounding and Sergeant pay scales creates a highly robust pension.
- Years Served 35 Years
- Career Path Top Step Sgt
- Reduction 0% (NPA Reached)
Max Pension (No Lump Sum)
£35,600 / year
With Standard Commutation
£29,000 /yr + £79,200 cash
4. The 30-Year Inspector
An officer who achieved the rank of Inspector mid-career. Because CARE treats every year individually, the high salary in their final 10 years significantly boosts the average.
- Years Served 30 Years
- Career Path Top Step Insp
- Reduction 0% (NPA Reached)
Max Pension (No Lump Sum)
£38,400 / year
With Standard Commutation
£31,400 /yr + £84,000 cash
5. The 35-Year Superintendent
Senior leadership trajectory. Despite paying the highest 13.78% contribution rate, the sheer volume of pensionable pay feeding into the 1/55.3 calculator generates an exceptional yield.
- Years Served 35 Years
- Career Path Top Step Supt
- Reduction 0% (NPA Reached)
Max Pension (No Lump Sum)
£61,200 / year
With Standard Commutation
£49,200 /yr + £144,000 cash
6. The 10-Year Late Joiner
A second-career officer who joined at 50 and retires at 60. Provides a crystal clear look at what just one decade of police pension accrual achieves compared to private sector DC schemes.
- Years Served 10 Years
- Career Path Mid-Step PC
- Reduction 0% (NPA Reached)
Max Pension (No Lump Sum)
£6,500 / year
With Standard Commutation
£4,900 /yr + £19,200 cash
07. The McCloud Remedy
You cannot discuss modern police pensions without mentioning McCloud. Named after a judge in a landmark discrimination case, the "McCloud Remedy" aims to fix a massive government error.
The Context
When the government forced the entire public sector onto the 2015 CARE scheme, they allowed older officers (who were close to retirement) to stay on their wildly protective legacy schemes (like the 1987 Police Pension). The courts ruled this was illegal age discrimination against younger officers.
Who is Affected?
If you were serving in the police on or before 31st March 2012, and continued to serve until at least 1st April 2015, you are in the remedy cohort. If you joined the police in 2016 or later, McCloud does not affect you at all.
The "Deferred Choice"
To fix the discrimination, the government rolled back time. For the "remedy period" between 1st April 2015 and 31st March 2022, eligible officers were legally placed back into their legacy scheme (e.g., the 1987 scheme).
When you actually retire, you are given a Deferred Choice Underpin (DCU). You look at two pieces of paper:
- Your pension payout if those 7 years were calculated under the 1987 Scheme rules.
- Your pension payout if those 7 years were calculated under the 2015 Scheme rules.
You simply pick the paper that makes you the most money. For the vast majority of 1987-joiners, choosing the 1987 scheme rules for that 7-year block offers a dramatically superior outcome, primarily due to the 1987 scheme's aggressive lump sum calculation factors.
(Note: From April 1st, 2022 onwards, absolutely everyone—regardless of age or joining date—was placed entirely into the 2015 CARE scheme. The remedy only protects the 2015-2022 period).
08. Survivor Benefits
Often overlooked when grumbling about contribution rates is the immense value of the 2015 Scheme's insurance mechanisms. It is not just a savings pot; it is a profound safety net for your family.
Death in Service Grant
If you die while still serving as an active police officer, the scheme immediately pays out a tax-free lump sum grant.
3 × Final Pay
(e.g., £144,000 cash for a £48k PC)
Survivor Pensions
If you die (in service or during retirement), your spouse, civil partner, or cohabiting partner is entitled to a pension for the rest of their life.
50% of your pension
Children's pensions are also paid to eligible dependents.
Action Required: Death Grant Nomination Form
Unlike the 1987 scheme which heavily restricted who received death benefits (only formal spouses), the 2015 scheme allows you to nominate almost anyone to receive the 3x death grant, including unmarried partners or trusts for children. You must complete a Death Benefit Nomination form with your pension administrator. If you do not, it may fall into your general estate and be caught up in inheritance tax and probate delays.
09. The Take-Home Trade-Off
One of the most pressing issues for modern police officers is the feeling of being "cash poor" today, despite being "pension rich" tomorrow. The 2015 Scheme demands a heavy toll on your immediate take-home pay to secure your future.
Why Contributions Hurt So Much
When you are paying 13.44% of your salary into a pension, alongside National Insurance, Income Tax, Federation dues, and potentially student loan repayments, the deductions slice deeply into your gross pay. For a mid-level Constable, the pension contribution alone can exceed £400 a month (gross).
This creates a severe long-term vs. short-term conflict. You are buying guaranteed financial security for age 60, but you may be struggling to pay childcare costs or mortgage interest at age 30.
The Danger of Opting Out
Faced with immediate financial pressure, some officers consider opting out of the pension scheme to gain an instant £250-£300 boost to their monthly net pay.
Critical Warning: What You Lose By Opting Out
If you opt out, it is not just about missing out on retirement income. You immediately lose:
- The 30%+ Employer Contribution: You are effectively turning down free money from the government.
- Death in Service Cover: Your family loses the 3x salary death grant.
- Ill-Health Retirement Protection: You severely compromise the safety net that protects you if you are injured on duty and cannot work.
Opting out is almost universally considered a disastrous financial move by independent financial advisors, absent extreme emergency circumstances.
10. Is the Police Pension Still Worth It?
Older officers will tell you "the job is dead" and the pension "isn't what it used to be." It is objectively true that the 2015 CARE Scheme is less generous and requires you to work a decade longer than the legendary 1987 scheme.
However, comparing 2026 to 1987 is a false comparison. The only valid comparison is comparing the 2015 Police Pension to what else is available in the modern UK economy.
vs Private Sector DC
A typical private sector scheme sees the employer match 5% to 8%. The pot size fluctuates with stock market crashes. The police scheme guarantees your payout regardless of the economy, backed by a ~30% employer contribution.
vs NHS Pension
The NHS CARE scheme accrues at 1/54 (slightly better than the police 1/55.3), but NHS workers generally have a higher Normal Pension Age tied entirely to their State Pension Age (67/68), whereas police retain SPA 60.
vs Fire Pension
Firefighters accrue at 1/59.7, which builds their pot slower than the police 1/55.3. They also face similar contribution rates and retirement ages. The police specific mechanics remain highly competitive within the blue-light sphere.
Despite real-terms pay erosion over the last fourteen years, the 2015 Police Pension remains a heavyweight, gold-plated defined benefit scheme. It is the single largest financial asset most officers will ever own, and the primary reason the total reward package for policing remains viable.
Common Questions
What is the average police pension UK?
Under the 2015 CARE scheme, a career Constable retiring at 60 after 30 years can expect roughly £25,000 to £35,000 annually. Promoted ranks (Inspectors+) often secure £40,000 to £60,000+ per year before tax.
How much is a police pension after 30 years?
It is based entirely on the salaries earned over those 30 years. Using current Constable pay scales, 30 years of continuous service produces an estimated annual pension of £25,000 (if retiring at age 60 without commutation).
What is the 1/55.3 police pension rule?
The 1/55.3 rule is the accrual rate for the 2015 CARE scheme. Every year, you add exactly 1/55.3 of your pensionable pay for that year into your lifetime annual pension pot. This pot is then revalued annually.
Can police officers retire at 55?
Yes, under the 2015 Scheme you can voluntarily retire at age 55. However, because you are taking it 5 years before the Normal Pension Age of 60, your annual payout will suffer an actuarial reduction of approximately 20-22%.
Is the police pension better than the NHS?
They are comparable. The NHS has a slightly better accrual rate (1/54 vs police 1/55.3). However, police officers can retire at a fixed age of 60 without penalty, whereas NHS staff are tied to the State Pension Age (67/68).
Is police overtime pensionable?
No. Casual overtime, rest day working, and public holiday working do not count towards your pensionable pay in the 2015 scheme. Your pension is based strictly on your base salary and permanent allowances.
Does London Weighting count towards pension?
Yes. Permanent regional allowances like London Weighting and the London Allowance form part of your "Pensionable Pay" and therefore increase the amount you bank each year under the 1/55.3 calculation.
How does inflation affect the police pension?
While you are an active serving officer, your banked pension pot is revalued every year by the Consumer Prices Index (CPI) plus 1.25%. This aggressive revaluation protects your early-career contributions from inflation.
What happens to my pension if I quit the police?
Your pension becomes "deferred." It stops growing by CPI+1.25% (dropping to standard CPI tracking) and you cannot access the full unreduced amount until you reach your State Pension Age (usually 67/68).
Do I pay tax on my police pension?
Yes. Your monthly pension income is treated as normal earnings and is subject to standard Income Tax via PAYE. However, the lump sum you receive (if you commute) is completely tax-free up to HMRC limits.
Can I opt out of the 2015 police scheme?
Yes, you can opt out to increase your immediate take-home pay. However, you forfeit the ~30% employer contribution, the 3x salary death grant, and ill-health protections. It is generally advised against.
Is there a maximum pension pot limit?
Under the 2015 CARE scheme, there is no maximum limit to the number of years you can accrue (unlike the 30-year limit in the 1987 scheme). You continue to bank 1/55.3 for every year you serve.
Do my pension contributions reduce my tax bracket?
Yes. Because the 13.44% contribution is deducted from your gross salary before income tax is calculated, it significantly lowers your taxable income, potentially keeping you out of the 40% tax bracket.
What happens to the lump sum in a divorce?
A police pension is considered a marital asset. During divorce proceedings, the court may issue a Pension Sharing Order, meaning a percentage of your pension (and potential lump sum) is transferred to your ex-spouse.
How does McCloud affect the 2015 pension?
McCloud only affects officers who joined before 2012. It gives them the choice to have their service between 2015 and 2022 calculated under older (1987/2006) scheme rules rather than the 2015 CARE rules.
Where can I see my exact police pension projection?
You must request a formal projection from your force's pension administrator (e.g., XPS Administration). They hold your exact contribution history and McCloud remedy data.