What happens to my pension if I leave or opt out?
You can opt out of PPS at any time by completing and returning an option form available from your force's pensions administrator. If you opt out in the first three months of your police service, your decision is back-dated to the date of your becoming a regular police officer. If you decide to leave PPS at any other future date, your decision will take effect from your next pay day after receipt of your notice to opt out.
Opting out of PPS will have a number of consequences, including:
- if you build up two years or more pensionable service in PPS and then opt out, you will be entitled only to a deferred pension, which would generally only be payable from age 60,
- if you die in service when you have opted out of PPS, no lump sum death grant is payable,
- as someone who is not an active member of PPS you will not be eligible for an ill health pension if you are medically retired, although you will qualify for early payment of your deferred pension if you are assessed as permanently disabled for all regular employment,
- opting out will affect the benefits which are payable to your survivors,
- you cannot rejoin the PPS, only NPPS.
If you opt out of PPS with less than two years’ qualifying service, your pension contributions will be refunded when you leave the service or reach your compulsory retirement age.
If you are thinking of opting out of PPS, you are strongly recommended to take independent financial advice before you make a decision.
If you leave or opt out of PPS before pension age, you have a choice of options for your benefits. Your choice will generally depend on the length of your qualifying service.
If your police service plus any linked qualifying service amounts to more than three months but less than two years, you can either transfer out your PPS pension rights to another pension scheme, or receive a refund of your contributions.
If your police service plus any linked qualifying service amounts to two years or more you can either transfer your PPS rights to another pension scheme, or retain deferred benefits within the PPS.