Consultation on Draft Police Pensions (Amendment No.2) Regulations (Northern Ireland) 2024

Overview

Under the Public Service Pensions Act (Northern Ireland) 2014 (2014 Act), all defined benefit schemes made under section 1 of the Act or a connected scheme (including the police pensions’ schemes), must be actuarially valued.

The 2020 Police Pension Scheme Valuation conducted by the Government Actuary (GAD) and published on 12 December 2023, reported on the analysis of the 2015 Police Pension Scheme (2015 scheme) in terms of scheme sustainability and affordability and made recommendations as to any requirements for change in scheme benefits including employer contribution rate and the employee contribution rate, for the period 1 April 2024 to 31 March 2027.

On 30 October 2023 the Northern Ireland Police Pension Valuation 2020 report was agreed by the former Government Actuary (GAD).  The report identified a requirement to increase both the employer and employee contribution rates in order to maintain the long-term sustainability of the Police Pension Scheme.  Under regulation 15 of 2015 scheme, the Department sought the advice of the Police Scheme Advisory Board (SABNI) on the desirability of making changes to this scheme.

The 2020 Police Pension Scheme Valuation conducted by the Government Actuary (GAD) and published on 12 December 2023, reported on the analysis of the 2015 Police Pension Scheme (2015 scheme) in terms of scheme sustainability and affordability and made recommendations as to any requirements for change in scheme benefits including employer contribution rate and the employee contribution rate, for the period 1 April 2024 to 31 March 2027.

In February 2024 the Department asked the SABNI to consider how the shortfall in the employee contribution might be addressed, even though the cost cap had not been breached.  The SABNI, having given detailed consideration to the matter, acknowledged that on this occasion, in the current economic position, Police Pension Scheme members would be required to meet this deficiency, and recomended an agreed approach to resolve the matter.   

This targeted consultation solely relates to an amendment to Regulation 169 of the Police Pensions Regulations (Northern Ireland) 2015 which not only revises the member contribution bandings  but also implements a percentage increase to annualised employee contributions between 1 April 2025 and 31 March 2027, in order to address the shortfall in employee pension contributions, following the 2020 scheme valuation.    

The Department welcomes views from interested parties on the draft regulations.  In particular the views of groups that represent police officers, police employers, and others responsible for implementing the changes.