Police Pension Schemes
Explained
A complete, plain-English breakdown of the three UK police pension schemes — how they differ, who they apply to, and what they mean for retirement planning.
Authority Notice: Independent explanation of public pension structures. Not regulated financial advice. Updated: February 2026. Next review: February 2027.
Executive Summary
UK police officers may have service in one or more of three pension schemes:
Each scheme differs in accrual rate, retirement age, contribution structure, survivor benefits, and ill-health provisions.
The Key Structural Difference
The 1987 and 2006 schemes are final salary based.
The 2015 scheme is a Career Average Revalued
Earnings (CARE) scheme.
Understanding which scheme applies — and how they interact — is essential for retirement planning and McCloud remedy considerations.
Which Police Pension Scheme Am I In?
Which Pension Scheme Am I In?
Interactive Selection Tool
At a Glance: Scheme Comparison
1987 Scheme
2006 Scheme
2015 Scheme
Police Pension Reform Timeline
The 1987 Scheme Explained
The 1987 scheme is a final salary defined benefit pension. It is widely regarded as one of the most generous public sector pension schemes historically available.
- Pension based on final salary at retirement.
- Accrual increases after 20 years.
- Maximum pension reached at 30 years' service.
- Automatic lump sum included.
- Early retirement often possible after 30 years.
This scheme rewards long service heavily. However, it is now closed to new entrants. Officers with legacy service may still have protected rights under transitional arrangements.
The 2006 Scheme Explained
Introduced as a reform to the 1987 scheme, the 2006 scheme adjusted retirement age and accrual structure.
While less generous than the 1987 scheme, it remains a defined benefit final salary pension with guaranteed income. The 2006 scheme also closed to new entrants following 2015 reforms.
The 2015 CARE Scheme Explained
The 2015 scheme fundamentally changed police pension design. Instead of final salary, it uses a CARE model.
Each Year:
- 1 1/55.3 of pensionable earnings is added to a pension pot.
- 2 That amount is revalued annually.
- 3 The total provides inflation-linked income at retirement.
Pension Age
Normal Pension Age aligns with State Pension Age.
Guarantee
It remains a defined benefit scheme. Income is guaranteed.
Final Salary vs CARE — What’s the Difference?
Final Salary
- Pension based on salary near retirement.
- Favors officers with rapid late-career promotion.
- Sensitive to final rank.
CARE Model
- Pension builds evenly across career.
- Less dependent on final promotion.
- More predictable across career path.
Neither is inherently “better”. They reflect different design philosophies.
Scheme Interactions: Worked Examples
Joined 2003
- Legacy Scheme:1987 Scheme
- Current Accrual:2015 Scheme
- Pension Age:Mixed / 30yrs*
- McCloud Remedy: Eligible
Joined 2008
- Legacy Scheme:2006 Scheme
- Current Accrual:2015 Scheme
- Pension Age:55 / SPA
- McCloud Remedy: Eligible
Joined 2019
- Legacy Scheme:None
- Current Accrual:2015 Scheme
- Pension Age:State Pension Age
- McCloud Remedy:N/A
Common Myths vs Reality
"The 2015 scheme is always worse"
Reality: While it has a higher retirement age, the 2015 scheme offers a better accrual rate (1/55.3) than the 2006 scheme (1/70) and remains a high-value defined benefit plan. Read more.
"If you resign you lose your pension"
Reality: Your pension is guaranteed. If you resign, your accrued benefit is 'preserved' and will be paid at your deferred pension age, index-linked for life. Details here.
"You can always retire at 55"
Reality: Retirement age depends on your scheme. 1987 members can retire after 30 years (often age 48-52). 2015 members' normal pension age is linked to State Pension Age. Check timelines.
"Opting out just boosts take-home"
Reality: Opting out is expensive. You lose the massive employer contribution (~31%), tax relief, and death-in-service benefits. Compare the cost.
Contribution Differences Across Schemes
Employer contributions significantly exceed private sector norms in all schemes.
Lump Sum Differences
1987 Scheme: Automatic lump sum included.
2006 & 2015: No automatic lump sum. Commutation required.
Commutation reduces annual pension permanently. Members may commute part of pension to generate a lump sum at retirement.
Quick Reference
Pension Scheme Identifier
Explore Related Decision Analysis:
Why Understanding Your Scheme Matters
Different schemes affect retirement age, pension value, lump sum flexibility, survivor benefits, ill-health retirement, and career planning decisions.
Critical Risk: Failure to understand scheme structure can lead to incorrect assumptions about retirement timing and income expectations.
Frequently Asked Questions
What happens to my police pension if I resign?
If you resign, your pension is preserved. You do not lose it. It stays in the scheme and is paid at your deferred pension age, fully index-linked for life. Read full resignation guide.
Is the police pension index linked?
Yes. Once in payment, your pension increases annually in line with the Consumer Prices Index (CPI). This ensures your purchasing power is protected against inflation for life.
What is actuarial reduction?
If you retire early (before the Normal Pension Age), your pension is reduced because it will be paid for longer. This 'reduction' matches the life expectancy math to keep the fund balanced.
Does promotion increase my pension?
In 1987/2006 schemes, yes—significantly, as it's based on final salary. In 2015, it increases your accrual for that year and all future years. See the math.
How does commutation work?
You can trade some of your annual income for a tax-free lump sum. The 1987 scheme has better 'commutation factors' than the 2015 scheme usually. Use the tool.
Can I transfer pensions in/out?
Generally yes, especially within the Public Sector Transfer Club. Transfers out of a defined benefit scheme are strictly regulated. Read policy.
What is the employer contribution?
It is currently approx 31% of your pensionable pay—one of the highest in the UK. This is part of your total reward package that isn't visible on your payslip.
Does sick leave affect pension?
Paid sick leave (full or half) continues your accrual. Nil pay periods may create a 'gap' unless you buy it back later.
What is ill-health retirement?
If you are permanently disabled from police work, each scheme has provisions to pay your pension early, often with an 'enhancement'. See the rules.
What is the McCloud Remedy?
A legal fix for age discrimination. Eligible officers choose between schemes for the 2015-2022 period at retirement. Remedy Guide.
Can I opt out temporarily?
You can, but you lose the 31% employer contribution and valuable protections. Is it worth the risk?
What is the 1987 max service?
30 years. At this point, you accrue 40/60ths (two-thirds salary). Continuing to serve past 30 years in the 1987 scheme does not increase accrual further.
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Related Next Steps
Model Your Exact Pension
Use our Police Pension Calculator to estimate your annual income under the 1987, 2006 or 2015 scheme — including early retirement reductions and McCloud impact.
Final Overview
The UK police pension system has evolved through three major structures. While design has shifted from final salary to CARE, all schemes remain defined benefit pensions offering guaranteed income.
Understanding the distinctions between 1987, 2006, and 2015 schemes is foundational to retirement planning, contribution decisions, McCloud remedy considerations, commutation choices, and career longevity planning.