Annual Benefit Statements
Public Sector Pensions Annual Benefit Statements to March 2023
The PSPA is currently working on a project to switch to a new pension administration system, which is due to be in place by May 2024. Unfortunately, due to limited resources this has meant that the PSPA has had to divert some staff to work full time on the project and as such, has taken the decision not to issue the Annual Benefit Statements this year.
However, for those members who are close to or actively considering their retirement in the next 12 months, then the PSPA will gladly provide you with an estimate at no charge.
For those members who are not close to retirement the PSPA would kindly ask that you refrain from requesting estimates at this time and wait for the next estimate to be produced in the autumn of 2024.
For further information, please contact us directly at firstname.lastname@example.org.
Annual Benefit Statement
This Factsheet is to be read in conjunction with your Police Scheme Annual Benefit Statement and will provide you with additional information and answer some common questions you may have.
What is an Annual Benefit Statement?
As an active member of the Police Pension Regulations 1991 and 2010 (the Police Scheme) you will have received an Annual Benefit Statement assuming you have worked pensionable hours in the tax year in question.
We would like to remind members to check their employee contributions on their payslips.
The Police Scheme offers you a range of valuable benefits for you and your family: including a pension, lump sum, annual inflation proofing of benefits and potential pension benefits for your surviving dependants.
The purpose of sending you the statement is to give you an estimate of the value of the benefits you have built up so far (up to 31 March) for your retirement and we hope that you will find it useful for any future financial planning.
What does it tell us?
Your annual benefit statement will give you an estimate of the pension and maximum lump sum benefits you may receive at a range of three retirement ages of 55, 60 and 30 Years of Service. We hope that this will help in your future retirement planning.
The Police Scheme offers retirement flexibility to its members, allowing them to choose to retire at any age from age 55 up to age 65 (subject to any contractual restrictions). It also has flexibility around the level of benefits and amount of lump sum that can be taken
We do not quote the full pension benefits accrued to the statement date i.e. 1st April. This is because in the Police Scheme, if you leave without collecting your retirement benefits, your service and final pensionable pay are preserved. It is the final pensionable pay that will be inflation proofed and applied to a growth rate and your service at whatever age you choose to retire from the scheme.
We recognise that there will be some information that you may like to know for example how it is calculated, especially service and final pensionable pay. This factsheet is developed to support the issue of the annual benefit statements and to help your understanding of the figures we have quoted and the service and final pensionable pay we have based them on.
All the Scheme factsheets, member guides and forms you may need can be found on the forms and guides page of our website.
Why is it to 31 March?
The Scheme year runs from 1 April to 31 March.
The pension and lump sum estimates illustrated on the statement are based on your service, working pattern and your final pensionable pay to 31 March.
Each year, your employer tells us about your earnings and service you have worked up to the end of the scheme year, which is 31 March. We record that data and produce your annual benefit statement.
Who will get one?
If you have been a contributing member of the Police Scheme for more than a calendar year before the 1 April, then you will receive an annual benefit statement.
If you fall into this category and haven’t had one, then please email email@example.com as soon as possible. You will need to give your full name, date of birth and address so we can arrange for one to be sent to you.
What do I need to do?
We would recommend that you read the statement and check the ‘About You’ details carefully, please also check the contributions section.
It is important that these are correct, especially the scheme section, pay and service.
If you disagree with any of the information we have quoted, then please first read this factsheet, as it may answer your questions. If after reading the information we have provided, you still want to get in touch please email us at firstname.lastname@example.org quoting your reference number and giving as much information as you can.
Please ensure that you email us your question rather than telephoning, as it is important that we can keep a written record of your question and our written response.
We will acknowledge your email and tell you when we aim to respond to you.
If you are content with the data provided, then we would recommend that you keep the statement to assist in your future retirement planning.
This is the section which confirms important information that we hold about you and the following explanations are to help you understand how some of this information has come about. For security reasons, we have not included your date of birth or your National Insurance Number.
Scheme Name and Section
The Scheme Name is the Police Scheme and the Section is the Section of the Police Scheme that we have you recorded as being a member of. The below table shows each Section name in full:
Name of Unified Scheme Section
1991 Scheme Member
2010 Scheme Member
Please check your section carefully, if you believe this to be wrong then please contact us as soon as possible. It is important we have you in the correct section, as it will affect the way in which your pension benefits are calculated. Further information on the Police Scheme Sections and contribution rates can be found in Member Guide our website.
Assumed working pattern
This is the working pattern at 31 March, as confirmed to us by your employer. 100% means you were full-time in your post and anything less will mean you were part-time including any unpaid leave in your post.
Any changes to your working pattern since 1 April will be reflected in next year’s Annual Benefit Statement. For the purposes of this statement the estimated benefits shown assume the same working pattern for the future from 1 April up to ages 55, 60 and 30 Years of Service.
For example, if your current working pattern as at 31 March was 50.00% we would have pro-rated down your future pensionable service to ages 50, 55 and 30 Years of Service by 50%.
That is to say if you had 10 years to work until age 55, this would be reduced to 5 years because you are working part-time at 50%. 15 years to work to 60, would be reduced to 7.5 years and 20 years to age 65, would be reduced to 10 years.
The total number of years and days which count toward your Scheme benefits, accrued up to 31 March. This may be different to the length of time you have worked and contributed to the Unified Scheme.
For example, it will include service built up in any previous roles that have been converted into the Scheme. It may also include service that you had transferred in from another pension arrangement.
Contributions in year
The amount of superannuation contributions paid during the year proceeding 31 March. Always check your pay slip to make sure you are paying the correct contributions for your scheme section.
Projected Estimated Retirement Benefits
Based upon your current working pattern as at 31 March this is the total pensionable service we estimate that you would be able to build up in the scheme up to the range of pension ages quoted.
Final Pensionable Pay
Based on your pensionable pay as at 31 March and historic pay this is the estimated Final Pensionable pay projected forward up to the range of pension ages quoted.
In a 'final salary' scheme like the Police Pension Regulations 1991 and 2010, your benefits are calculated when you retire using your pay near retirement and we call this your Final Pensionable Pay. The amount used to calculate your Final Pensionable Pay is the best of the last three years of service for 1991 Members, and the best average three of the last 10 years for 2010 Members.
Your Final Pensionable Pay is likely to change between now and when you leave the scheme so the actual figures used at retirement will be different.
As your pay at or near retirement is not currently known, we have used an estimate based on your pensionable pay earned up to 31 March. Depending on your age at the date of this statement, the final pensionable pay may be different at each age.
Please see our Final Pensionable Pay Factsheet on the website to find out how these figures have been calculated.
How much could you get in retirement?
As the Police Scheme has the flexibility to allow members to retire at a range of ages from age 55, we have quoted estimated benefits at ages 55, 60 and 30 Years of Service. The benefits quoted are based on the equivalent final pensionable pay for each age and your projected pensionable service up to each age.
Annual Pension: your estimated benefits if you do not take a cash lump sum
This is the estimated annual pension that would be payable from retirement for your life time. It is based on your current service pattern going forward, as stated in the ‘About You’ section, so if you change your hours in the future then this value will change. It is also based on the Final Pensionable Pay figure we have quoted for each age.
Depending on your age now, you may find that the pension at 55 is more than the pension quoted at a later age and this will be because of the impact of unknown inflation increases on your Final Pensionable Pay. As we can’t predict future inflation increases, we have assumed no future inflation, which may see final pensionable pay being less in the future than it is now.
The Final Pensionable Pay factsheet will explain more, but as we don’t know what future inflation increases are we have not applied any. If we did predict future inflation increases, we would be in danger of overestimating your benefits.
Maximum Cash Lump Sum and Reduced Annual Pension
As you know you also have the option of taking up to 25% of the value of your pension (for 1991 Members only) as cash at retirement, so we have quoted the maximum lump sum available and the reduced balance pension.
Adult Dependant Pension
In the event of your death after retirement this is the pension amount that would be paid to your surviving adult dependant.
Protection for your family – Death in Service Lump Sum and Pension
In the event of your death before retirement and whilst still in service, this is the cash lump sum that will be payable to your nominated beneficiary. The cash lump sum is 3 x pay.
You can nominate a person or person(s) to be the recipient of this lump sum when you die.
You can make a nomination by completing this form.
If you have made a nomination, make sure you keep it up to date.
Adult Dependant Pension
In the event of your death whilst in service and before retirement this is the pension amount that would be paid to your surviving adult dependant.
Find out more about these benefits from the Scheme Guide on the website.
Added Years and Added Pension
If you are purchasing additional years of service or pension, the benefits will be confirmed in your statement.
Frequently Asked Questions
How is the pension calculated?
When you retire, you will receive a percentage of your Final Pensionable Pay for each year of Pensionable Service. The percentage rate you receive is known as a growth rate or accrual rate. The growth rates are dependent on your age at retirement and there are different growth rates for each section of the Scheme. You can see the growth rates we have used on your Benefit Statement.
Nothing in this factsheet will override the Rules, and in the event of any unintentional difference, the rules will apply.
How we use your information
The PSPA will use the information that we hold about you for administering the Scheme and processing the payment of your pension benefits. We may share your information to administer and pay your pension, to enable us to prevent and detect fraud and mistakes, or as required by law. For more information about whom we share your information with, how long we keep your personal data and your rights over your data, please refer to our Privacy Notice on our website at www.pspa.im
Where can I go for help?
The PSPA website has numerous guides and fact sheets to help you understand the Unified Scheme. These are held on the forms and guides page.
Contact the Scheme administrators at the PSPA:
3rd Floor, Prospect House,
27-29 Prospect Hill,
ISLE OF MAN,
You can telephone us on +44 1624 685598 you will need to provide your full name, date of birth and your current home address, however we always recommend putting your enquiry in writing if you can, so that there is a written record of your enquiry and our response.