Police Pension Regulations 1991 and Police Pension Regulations 1991
The Public Sector Pensions Authority (PSPA) is seeking your views on the proposed Police Pension (Amendment) Regulations 2022 (the Amending Regulations). The proposed changes will increase the pension commutation cap in the Police Pension Regulations 1991 and 2010.
Police Pension Regulations 1991
Currently under regulation B7, members who have reached their voluntary retirement age or have accrued at least 30 years’ service may commute up to one quarter of their pension for a lump sum. In all other circumstances, the amount that a member may commute is limited under rule B7 (4)(b) and may not exceed 2.25 times the amount of pension.
The proposed amendments increase the limit on the amount of pension that may be commuted for a lump sum to a value that represents 30% of the capitalised value of the member pension.
Police Pension Regulations 2010
Currently, Regulation 28 permits members to receive an automatic lump sum of 4 x pension and there is no option to commute any pension for an additional lump sum.
The proposed amendments allow members a choice to commute some of their pension for an additional lump sum, which when added to the automatic lump sum, will not exceed a maximum value that represents 30% of the capitalised value of the member pension.
These amendments align the Police Pension Regulations to the commutation cap applied in other public sector schemes as the maximum permitted by Income Tax regulations. These amendments do not increase or decrease the amount of pension payable on the retirement to a member of the Constabulary, but rather provide Members greater flexibility as to how that pension is paid upon retirement.
The formal consultation document and draft amendment regulations are in the Downloadable Documents.
Consultation will be for 6 weeks from 16 November to 28 December 2022. Any comments you wish to make in relation to the draft Amending Regulations must be forwarded to the PSPA by midnight on 28 December 2022.
How to Respond
This consultation exercise is designed to invite comments on the draft documentation which will be considered for approval by the PSPA.
Comments should be submitted by via email to Feedback.PSPA@pspa.im or in writing by post to:
Third Floor, Prospect House,
27-29 Prospect Hill,
Please note that the Public Sector Pensions Authority (PSPA) will assume, unless you indicate otherwise, that you do not object to your response being made public via the PSPA website.
If you wish all or part of your reply to be treated as confidential, then please indicate this clearly in your response.
Following consultation, the Public Sector Pensions Authority will:
review all comments received from consultees
publish a document on its website summarising the main points
amend the draft Regulations, as necessary before approving and giving them effect and
seek to make the Police Pension (Amendment) Regulations 2022 in January 2023 and then progress to be laid before Tynwald.
PLEASE CLICK THE LINK BELOW TO READ THE DOCUMENT IN FULL :