This only effects officers who are not members of the Police Pension schemes.
Auto-enrolment – the rationale
Every three years all employers in the UK – including police forces – are obliged to re-enrol workers who have previously opted out back into their pension scheme. The intention behind this is to safeguard pensioners and ensure they are provided for in their old age, and don’t overlook the opportunity to build up a pension. For officers, this means those who have opted out of any of the police schemes will be enrolled into the Police Pension Scheme 2015 (2015 CARE Scheme).
We are aware that some officers have opted out of the schemes. These officers will be re-enrolled, and if they do not opt out again then they will have pension contributions deducted from their salaries. Clearly this may cause hardship if the deductions are sizable, or if the officer is not alert to the possibility, and fails to act.
We understand there are relatively few officers who have opted out. However, because of the possible impact on these officers we are keen to ensure that they understand the auto-enrolment process and take whatever action they feel appropriate.
The aim of this communication is to ensure that officers know what to look out for. We would not encourage officers to opt out without taking independent financial advice. However, if an officer is certain that he or she wishes to remain opted out of the CARE Scheme then the following applies:
- There is an opt out period. The local employer (force) may specify this, but if not then the statutory provision applies under (Reg 9(2) or (3) of the Occupational and Personal Pensions Scheme (Automatic Enrolment) Regulations 2010. This means the opt-out period will start on the date statutory re-enrolment information is given
- The employer MUST give the following information to the officer
- A statement that the officer has been or will be re-enrolled
- The date for this
- The value of any pension contributions, and a statement that these will be deducted
- The contributions must be deducted from the next payroll after re-enrolment
What should I do if I previously opted out and wish to do so again?
- Any officer who is certain that he or she wants to still opt out will have to make that known to the employer and pension provider as soon as possible after receiving the statutory letter or email notifying them that they are being re-enrolled
- The officer has one month to complete an opt-out notice (provided by the pension provider) and leave the scheme
- An opt –out notice cannot be submitted prior to the officer becoming an active member
- After receipt of this, the employer must stop deducting contributions, and refund any already deducted since re-enrolment
Clearly for some officers it is possible that the initial deductions from salary will occur before the opt-notice is actioned by the force. This will depend on local payroll timetables. If you have previously opted out and intend to do so again, then we suggest you contact your force HR (or scheme administrator) to check the timings.
Be alert to the need to complete an opt-out notice as soon as possible.