Overhaul of police pensions urged

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28 February 2012 Last updated at 20:39 ET

Policy Exchange said the pensions scheme was now a "drain on police budgets"

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Ministers should make "wholesale" changes to the pension scheme for police officers in England and Wales, a think tank report has recommended.

Policy Exchange said the scheme had become "unaffordable" for taxpayers at almost £2bn a year.

It called for a move away from a final salary to a career-average scheme and raising the retirement age to 60.

Most officers can currently retire from the age of 48, after 30 years' service, on two-thirds of their final salary.

The right-of-centre think tank said the scheme was now a "drain on police budgets".

'Fight crime'

Costs have risen almost 80% in real terms over the past 15 years and one pound in every seven pounds spent on policing goes on pensions.

The report recommended reforms in line with the Hutton review of public sector pensions, raising the pension age to 60 and moving to career-average payments.

But it said "bold" reforms were required in the longer-term for a less costly scheme that gave officers more choice and was open to civilian police staff.

Report author Edward Boyd said: "Police officers' pensions have become increasingly unaffordable for taxpayers.

"A growing pensioner population, primarily down to increased life expectancy coupled with only minimal changes in the retirement age, has increased costs substantially over the last decade.

"The more we have to pay for pensions, the less police forces have available to spend on hiring officers to fight crime."

He added: "We desperately need a new police pension scheme fit for the modern world.

"Without reducing costs, police officer pensions will become unaffordable for taxpayers and for officers themselves."

'Extra payments'

BBC home affairs correspondent Danny Shaw said police average pensions were higher than those of firefighters, soldiers, teachers and NHS workers.

Last year, Home Secretary Theresa May outlined large increases in police pension contributions.

Officers will pay between 1.5 and 4 percentage points more of their salaries, with the increases staggered over three years.

The extra payments will vary according to salary bands and the section of the scheme the officers are in.

The proposals are similar to those announced for teachers, civil servants and NHS staff.

Mrs May said the higher payments were needed to help the government raise an extra £2.8bn from public service pension scheme members to help fill its spending deficit.

The Police Federation of England and Wales said in response it would "do everything within our means to ensure that the value of police officers' pensions continue to reflect the difficult job that we do".

29 Feb, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-17200364
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