MPA & MPS Budget book 2006-07

MPA Revenue and Capital Budget Book 2006/07
Police Officer Pensions
Responsible Officer:
Director of Human Resources
Key Activities:
The most significant change to expenditure budgets from 2005/06 arises from revised arrangements
for the financing of police officer pensions, which come into effect on 1 April 2006. The majority of
pensions previously paid out of general revenue are now met from a new pensions account, which is
maintained outside the revenue account. Pension payments made from this account are mainly
funded from an Accruing Superannuation Liability Contribution (ASLC - effectively an employer's
pension contribution) charged to the revenue account for each police officer in the pension scheme
and from the police officers' own pension contributions. Transfers to and from the pension scheme
are also made through this account. The account is funded, if in deficit, by a grant from the Home
Office; conversely, if the account is in surplus, a repayment is made to the Home Office. No budgets
are prepared for this account.
The only elements still shown as pensions charges to revenue are ill-health early retirements, injury
related survivor benefits and a small element relating to pension payments for 30+ scheme members
(a Home Office scheme designed to encourage officers with over 30 years' service who would
otherwise retire to continue working).
The ASLC charged for police officers in the police pension scheme is part of the overall cost of
employing the officers and is therefore recognised against the police pay line. This is the most
significant reason for the increase in police officer pay.
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