What's New - New Items
Dear Full Time Reserve Colleague
Please find below the final package as presented by the Northern Ireland Office to the Federation Negotiating Team today. There are a number of outstanding issues in relation to retraining matters and officers from the FTR wishing to re-join the PSNI. However, while these issues will be pursued separately, the Negotiating Team thought it important that you should see the contents of the package now.
We believe that in all the circumstances this is as good a package as could have been negotiated and considerably superior to what has been available in the public sector. More detail regarding outstanding issues will follow in due course.
Terry Spence
Secretary - Police Federation for N Ireland
SEVERANCE SCHEME FOR PSNI FULL TIME RESERVE OFFICERS
- OFFICERS AGED 55+ ON DATE OF LEAVING
- For those with a compulsory retirement age of 57, pension enhancement up to the level which would have been earned by compulsory retirement age;
- For those with a compulsory retirement age of 57 and not entitled to immediate pension, payment in lieu of pension until pension age reached;
- Immediate payment of annual pension or payment in lieu based on enhanced service;
- Immediate payment of a lump sum commutation based on enhanced service;
- Lump sum compensation payment of an amount up to the equivalent of 12 month's pensionable pay;
- Additional lump sum equivalent to two month's pensionable pay;
OFFICERS AGED 50-54 ON DATE OF LEAVING
- Pension enhancement of up to a maximum of 5 years, subject to capping at the level which would have been earned by compulsory retirement age;
- For those not entitled to immediate pension, payment in lieu of pension based on enhanced service until pension age is reached;
- Immediate payment of annual pension or payment in lieu based on enhanced service;
- Immediate payment of lump sum commutation based on enhanced service;
- Lump sum payment of up to 2 3/4 years pensionable pay dependent on compulsory retirement age
- Additional lump sum equivalent to two month's pensionable pay
OFFICERS AGED 45-49 ON DATE OF LEAVING
- Pension enhancement of one day's pensionable service for each day of pensionable service after age 45 equal to the period of pensionable service attained from age 45 years to date of leaving, subject to total pensionable service not exceeding 30 years
- Payment of pension and commutation lump sum from age 50 based on enhanced officers service for those with 25 or more but less than 30 years pensionable service after enhancements
- Payment of pension and commutation lump sum from age 60 based on enhanced service for those with less than 25 years pensionable service after enhancements or;
- Payment of actuarial reduced pension and commutation lump sum based on enhanced service from age 50 for those with less than 25 years pensionable service after enhancements
- Lump sum of up to 3 years pensionable pay dependent on length of actual service
- Additional lump sum equivalent to two month's pensionable pay
OFFICERS AGED BELOW 45 ON DATE OF LEAVING WITH 12 OR MORE YEARS ACTUAL SERVICE AND NO ENTITLEMENT TO IMMEDIATE PENSIONS
- Pension and lump sum commutation preserved according to current pension rules or
- Payment of actuarial reduced pension and commutation lump sum from age 50
- Lump sum compensation payment of an amount equivalent to 3 years pensionable
pay
- Additional lump sum equivalent to two month's pensionable pay
OFFICERS AGED BELOW 45 ON DATE OF LEAVING WITH LESS THAN 12 YEARS ACTUAL SERVICE AND NO ENTITLEMENT TO IMMEDIATE PENSION
- Pension and commutation lump sum preserved according to current pension rules or
- Payment of actuarial reduced pension and commutation lump sum from age 50
- Lump sum compensation payment of between 1 1/4 and 3 years pensionable pay dependent on length of service
- Additional lump sum equivalent to two month's pensionable pay
FOR ALL OFFICERS
Comprehensive paid retraining programme of up to 9 months based on pensionable pay
Option to convert up to 6 months of the payment during retraining into a non pensionable lump sum
Available for one year from date of completion of approved re-training entitlement at current rates to removal allowance where officers have to move within the UK in order to take up full time employment beyond a reasonable travelling distance from home.
Examples of the benefits available to officers.
Please note, these are illustrative examples only and no officers should regard them as definitive confirmation of his/her actual entitlements
Illustration 1
Officer aged 55 with 30 years service compulsory retirement age 57
| Salary |
£30,186 = 12 months maximum lump sum |
|
| Pension |
16/60ths + 2/60ths = 18 of £30,186 = £9,055 |
|
| Less amount commuted |
£1,405 |
|
| Annual Pension |
£7,650 |
|
| Maximum Commutation |
2.25 X £9,055 |
= £20,374 |
|
|
|
| |
| Commutation Lump Sum |
= £20,374 |
| Add 12 months lump sum |
= £30,186 |
| Optional converstion of 6 months paid retraining |
= £15,093 |
| Add 1 months pay |
= £ 2,515 |
| Add further 1 months pay |
= £ 2,515 |
| |
| TOTAL |
= £70,683 |
Illustation 2
Officer at age 45 with 20 years service
| Pension |
16/28ths X 36/60ths X £27,039 |
= £9,270 (deferred to age 60) |
| Pension at age 60 |
Gross Pension |
= £ 9,270 |
|
Less 1/4 commuted |
= £ 2,318 |
|
Annual Pension |
= £ 6,952 |
|
Commutation |
= £30,134 (£2,318 X 1,300) |
| |
| 3 years pay |
= £81,117 |
| Optional conversion of 6 months paid retraining |
= £13,520 |
| 1 month lump sum |
= £ 2,253 |
| Add further 1 months pay |
= £ 2,253 |
| |
| TOTAL |
= £99,143 |
Alternatively, this officer opts for an actuarially reduced pension at age 50. Assuming no commutation, this is calculated as:-
£9,270 X 0.5747 (reduction factor in this case) = £5,327
Illustration 3
Officer aged 30 with 10 years service
| Pension |
10/29ths X 40/60ths X £24,852 |
= £5,523 (deferred to age 60) |
| Pension at age 60 |
Gross Pension |
= £5,523 |
|
Less 1/4 commuted |
= £1,381 |
|
Annual Pension |
= £4,142 |
|
Commutation |
= £17,953 (£1381 X 1300) |
| |
| 2 1/2 years lump sum |
= £62,130 |
| Optional conversion of 6 months paid re-training |
= £12,426 |
| 1 months salary |
= £ 2,071 |
| Add further 1 months pay |
= £ 2,071 |
| |
| TOTAL |
= £78,698 |
Members please note that in light of the fact every FTR officer will have a different entitlement to pension depending on age and service profile, seminars will be held throughout Northern Ireland in the coming months which will give definitive pension estimates for each FTR officer. Responsibility for this lies with PSNI Pensions Branch.
The first £30,000 of lump sum payment will be tax free.
