How Promotion
Affects Your Pension
Independent explanatory guidance based on Police Pension Schemes (1987, 2006, 2015 CARE) and Police Regulations.
Trust Notice: Independent explanation of public pension structures. Not financial advice. Not affiliated with any police force or government body.
The Promotion
Decision Calculus
Promotion can significantly increase your police pension — but how much it increases depends entirely on which pension scheme you are in.
Under the **1987 scheme**, pension is calculated using final salary, meaning promotion near retirement can dramatically increase lifetime pension income.
Under the **2006 scheme**, the calculation is still final salary based, but accrual rates differ and normal pension age changes outcomes.
Under the **2015 CARE scheme**, pension is based on career average earnings. Promotion increases future accrual, but does not retrospectively increase earlier years.
Promotion always increases earnings. It does not always increase pension in the way officers expect.
Quick Answer
"Promotion increases your police pension, but the impact depends on your scheme. In final salary schemes (1987/2006), it is based on your highest salary, so late promotion boosts the whole pension. In 2015 CARE, it only boosts future chunks."
Understanding The
Three Schemes
1987 Scheme
- Accrual: 1/60th per year
- Maximum: 40 years
- Final Salary Based
- Retirement: 30 Years Service
This scheme rewards late-career promotion heavily.
2006 Scheme
- Accrual: 1/70th per year
- Final Salary Based
- Lump sum optional
- Retirement Age: 55
2015 Scheme
- Accrual: 1/55.3 (CARE)
- Career Average Based
- CPI + 1.25% Revaluation
- Retirement Age: 60
Final Salary vs CARE
The Core Difference
"Pension = Years × Rate × Final Salary"
The latest (highest) salary rewrites the entire career's value.
"One year = One slice of pension"
Promotion only increases future slices. History is preserved.
Promotion does not rewrite history in CARE.
Promotion Impact
1987 Scheme
Under the 1987 scheme, pension is calculated using final pensionable salary (typically the highest 12 months in the last three years).
If you are promoted from Constable to Sergeant in your final year, your entire 30-year pension calculation uses the higher Sergeant salary.
30 Years Service @ Top Rate (£48,231)
Promoted to Sergeant Final Year (£53,000)
Difference: £2,385 per year for life.
Over a 25-year retirement, that is **£59,625** in additional income from one single promotion.
Promotion Impact
2006 Scheme
The 2006 scheme is still final salary based, but uses a 1/70th accrual rate. While the multiplier is lower, the effect of a late promotion remains significant.
- Constable Final Salary: £48,231 → £20,669 Pension
- Sergeant Final Salary: £53,000 → £22,715 Pension
- Difference: £2,046 Annually
Promotion Impact
2015 Scheme (CARE)
In CARE, each year builds pension independently. Promotion increases future accrual only. It does not multiply previous years. This is why officers close to retirement see a smaller impact.
£40,000 avg × 1/55.3 = £723 accrued/yr
Total Chunk: £7,230
£53,000 avg × 1/55.3 = £958 accrued/yr
Total Chunk: £9,580
Total Pension: £16,810
Cumulative Growth — Not retrospective multiplier
Acting Up &
Temporary Promotion
Final Salary Logic
If acting up forms part of your **highest 12 months** in the final three years, it can significantly boost your lifetime pension, even if the acting period was relatively short.
CARE Logic
You only accrue pension on the **extra earnings** during the acting period. A 6-month acting period as Sergeant results in a very minor permanent pension increase.
The Highest
12 Months Rule
For 1987 and 2006 schemes, final pensionable pay is usually based on the highest pensionable salary in the last 12 months (or any 12-month period in the last three years).
Crucial Exceptions:
-
Pensionable Pay Only
Certain allowances (like London Allowance or Overtime) are typically excluded from pensionable pay definitions.
-
Substantive vs Non-pensionable Acting
Not all acting-up pay is automatically pensionable. Check your force's specific regulation implementation for acting pay status.
McCloud Remedy
Interaction
Promotion timing during the **Remedy Period (2015-2022)** creates complex choices. If you were promoted during these 7 years, the value of that promotion will differ depending on whether you choose Legacy or CARE benefits for that specific window at retirement.
Early Retirement
Timing
Late-career promotion is a "multiplier" event. Promoting at 29 years service is almost as powerful as promoting at year 15 in terms of final pension value.
Earlier promotion is significantly more powerful. Promoting at year 5 allows you to build 25 years of "higher value" pension slices, whereas late promotion only adds a few.
Pension Impact
Estimator
- Current Scheme
- Current Rank / Salary
- Projected Rank
- Service Completed
- Years Until Retirement
- CARE Accrual Calculator
- Final Salary Multiplier
- McCloud Transition Check
- Revaluation Modeller
- Annual Pension Delta
- Lump Sum Impact
- Lifetime Comparison
- ROI for Promotion Effort
Estimates only. Variations in revaluation rates, personal tax circumstances, and scheme regulations will change the final outcome. Always verify with your official Annual Benefit Statement.
Common
Misconceptions
Misconception:
Promotion always massively increases pension.
Only true in legacy final salary schemes. In CARE, the impact is structural, not exponential.
Misconception:
Acting up automatically boosts retirement income.
Only if the pay is formally defined as pensionable earnings under specific scheme rules.
Misconception:
Promotion near retirement is pointless.
In 1987 scheme, it remains one of the most powerful financial moves available.
Misconception:
CARE scheme makes promotion irrelevant.
Incorrect. Early promotion builds a significantly larger earnings base that compounds via CPI+1.25%.
The Psychological
Dimension
Many officers hesitate to promote due to perceived stress which can result in long-term health or work-life balance concerns. However, pension modelling should change your decision calculus.
In final salary schemes, a single year of effort can fundamentally alter your retirement security for life.
Promotion is not just about a higher monthly salary — it is structural retirement planning.
Pension Knowledge Web
Pension Promotion FAQS
Does promotion increase my police pension?
Yes, but how much depends on your scheme type. Final salary schemes see a much larger multiplier effect near retirement.
Is the 2015 scheme less generous for late promotion?
Yes. It rewards earlier promotion history more than late-career 'jumps' due to the CARE accrual structure.
Does temporary promotion count?
Only if the pay for that rank is formally pensionable. Non-pensionable allowances do not increase your bracket.
Can I check the impact before applying?
Most pension calculators provided by forces or administrators allow 'what-if' modeling for different ranks.
Does acting up for 3 months affect pension?
In CARE, it is negligible. In 1987, it could potentially impact your final salary average if it falls within your highest period.
Data & Regulation Sources
- Police Pension Regulations 1987
- Police Pension Regulations 2006
- Public Service Pensions Act 2013
- Police Pension Schemes Reform 2015
- Home Office Circulars (Pensions Implementation)
- NPCC Pension Board Guidance
Updated: 2026-02-13 • Independent Explanatory Research