Disproportionate Effects of Banding Change.

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Disproportionate Effects of Banding Change.

Post by Beachcomber on Tue Nov 22, 2016 7:46 pm

Recent contacts have again raised the issue of the disproportionate effects of banding change where the pensioner retired early in service and therefore hadn't the opportunity to accrue a normal police pension. This imbalance was recognised in the heinous and now defunct HOC46/2004 Home Office Guidance (annex c):

"It seems to us that whereas it is reasonable for most cases to be reviewed at the compulsory retirement
age stage, not all such cases need to be reviewed again at age 65. A police authority would, after
concluding the review at compulsory retirement age, be entitled to judge it reasonable not to review a
case further where the injury award is already small. This will normally be the case with former
officers who were retired injured early in their career
. We do not think we can create a specific
"minimum" minimum income guarantee under the Police Pensions Regulations in their present form.
Each case will have to be considered on the basis of its individual circumstances".


In these cases the 'ordinary' police pension can be minuscule and it is the additional IOD pension that makes up the greater percentage of the pension. Compared to pensioners with more years service, pensioners in this situation stand to lose a disproportionate amount of income if their banding is reduced.

Furthermore, something which will effect many of us and those on lower pension incomes particularly. Most of us were 'contracted out' regarding National Insurance contributions. As I understand it, this meant that our employers paid less in NI and we didn't pay into SERPs so we didn't get the 'second state pension' which as many will know can make a big difference to the state pension (I don't know how this affects those of us who will receive the new flat rate state pension).  In return we were promised that, instead of SERPs, we would benefit from a Guaranteed Minimum Pension (GMP) but, as you can see from the above excerpt from HOC46/2004 Annex C, - We do not think we can create a specific "minimum" minimum income guarantee under the Police Pensions Regulations in their present form. Each case will have to be considered on the basis of its individual circumstances  

Although this affects most of us who were contracted out, it is a 'double whammy' for those forced to retire early in service and on lower IOD pensions. Unless the individual has been able to build up an additional pension then they are likely to have just the very basic state pension in addition to a very small IOD pension (which may be less than the basic state pension!).

The Regulations were set to protect police officers who had to retire as a result of injuries received in the course of their duties. Unfortunately those Regulations are being administered by people concerned with reducing the costs to police forces and the sacrifices of police officers are irrelevant to those aims. We live in a society which does not value the sacrifices made by police officers but happily rewards many of those who have contributed nothing and, in some cases, work against us.
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Re: Disproportionate Effects of Banding Change.

Post by Beachcomber on Wed Nov 23, 2016 11:14 am

Further to the above;

Pensions which have been paid for long periods have not kept up with real inflation and no longer reflect current police pay or even average earnings. An example of this was quoted in the Pensions Ombudsman determination in the 2009 case of 'Ayre':-

"The reduction to his injury pension (from about £800 to about £120 per month) came as a huge shock to him and his wife". wrote:
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