Police Pension Scheme – Protected Pensions Q&A

We have received information from Scottish Government in relation to the tax impact of officers being re-employed by the police service on retirement, before they reach the age of 55.

HMRC rules provide that certain conditions must be met where a retired member of the Police Pension Scheme is re-employed if the Protected Pension Age is to be retained. The conditions that apply are determined by the personal circumstances of the officer concerned in relation to their age when they retire or are able to retire, the employment being taken up after retirement and the period of time between retiring and being re-employed by the police force.

The rules are complex but the Home Office and SPPA have been in contact with HMRC and as a result the attached Q&A brief has been prepared by HMRC. The guidance in this note is pretty clear and hopefully will answer many questions.

The Scottish Police Federation would urge any officer who takes up employment on retirement to seek independent financial tax advice.

This entry was posted Thursday, 26 January, 2012 at 9:19 am
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