PPS Benefits Calculator | Police Pensions

PPS Benefits Calculator

This calculator is intended as a guide only. The actual benefits received at the time of payment are calculated according to the number of days served. The calculator can help you decide whether the benefits you have accrued are sufficient for you and your family or whether you need to seek advice about additional personal arrangements.

Use your tab button to move between fields. If you need any assistance, please Call us on 0191 495 2254 or freephone 0800 881 8085.

Cash when you retire

You can exchange part of your pension for a tax free lump sum. You may commute up to a quarter of your pension after 30 years' pensionable service or on compulsory retirement on account of age. If you have between 25 and 30 years service you can you can exchange part of your pension to provide a maximum cash sum of 2.25 times your remaining pension.

After 30 years service
Pensionable earnings
Commutation Factor from table		See the Commutation Factor table at the foot of the page
Full pension earned		Tax implications for the cash lump sum only affect those with a commutation factor in excess of 20.0
	Option One		Option Two
Maximum tax free cash allowed by HMRC		Maximum cash available
		Tax due on excess at 55%*
Pension commuted		Pension Commuted
Max cash taken		Cash net of tax
Gross pension remaining		Gross pension remaining
(if gross pension exceeeds £42,475 there will be an additional tax charge)
Net monthly income		Net monthly income

*Note if excess cash is taken under Option 2, tax at 40% is deducted before payment. A further 15% is then changed to you via your self-assessment tax return.

These figures are based upon the 2011/12 allowances, tax rates and our understanding of tax legislation as at May 2011. This is only a ready reckoner that makes standard assumptions to estimate your net income. Pension income is taxed as earned income but there are no national insurance or company pension scheme deductions. The figures assume that you are under 65 at retirement and you have the standard personal allowance.

Between 25 and 30 years service
	Years service
	Commutation Factor from table
	Pensionable earnings
	Full pension earned
	Maximum cash available
	Reduced pension
(if gross pension exceeeds £42,475 there will be an additional tax charge)
	Net monthly income

Commutation Table
Years	Age in years and completed months on day pension commences
Years	0	1	2	3	4	5	6	7	8	9	10	11
Below 48	23.50
48	23.50	23.50	23.50	23.50	23.50	23.50	22.40	22.38	22.37	22.35	22.33	22.32
49	22.30	22.28	22.27	22.25	22.23	22.22	22.20	22.18	22.17	22.15	22.13	22.12
50	22.10	22.08	22.05	22.03	22.00	21.98	21.95	21.93	21.90	21.88	21.85	21.83
51	21.80	21.78	21.75	21.73	21.70	21.68	21.65	21.63	21.60	21.58	21.55	21.53
52	21.50	21.48	21.45	21.43	21.40	21.38	21.35	21.33	21.30	21.28	21.25	21.23
53	21.20	21.18	21.15	21.13	21.10	21.08	21.05	21.03	21.00	20.98	20.95	20.93
54	20.90	20.87	20.83	20.80	20.77	20.73	20.70	20.67	20.63	20.60	20.57	20.53
55	20.50	20.48	20.45	20.43	20.34	20.38	20.35	20.33	20.30	20.28	20.25	20.23
56	20.20	20.17	20.13	20.10	20.07	20.03	20.00	19.97	19.93	19.90	19.87	19.83
57	19.80	19.77	19.73	19.70	19.67	19.63	19.60	19.57	19.53	19.50	19.47	19.43
58	19.40	19.37	19.33	19.30	19.27	19.23	19.20	19.17	19.13	19.10	19.07	19.03
59	19.00	18.97	18.93	18.90	18.87	18.83	18.80	18.77	18.73	18.70	18.67	18.63
60	18.60	18.57	18.53	18.50	18.47	18.43	18.40	18.37	18.33	18.30	18.27	18.23
61	18.20	18.16	18.12	18.08	18.03	17.99	17.95	19.91	17.87	17.83	17.78	17.74
62	17.70	17.67	17.63	17.60	17.57	17.53	17.50	17.47	17.43	17.40	17.37	17.33
63	17.30	17.26	17.22	17.18	17.13	17.09	17.05	17.01	16.97	16.93	16.88	16.84
64	16.80	16.77	16.73	16.70	16.67	16.63	16.60	16.57	16.53	16.50	16.47	16.43
65	16.40

Hanson Wealth Management Limited is an appointed representative of Hanson Financial Partners Ltd, which is authorized and regulated by the Financial Services Authority. Hanson Financial Partners Ltd is entered on the FSA register under reference 529347. The information contained within this site is intended for UK consumers only and is subject to the UK regulatory regime.