In 2006 the commutation factors changed as a result of a review by the Government Actuaryâ€™s Department. Officers who retired after this date received significantly increased commutation payments by as much as 20%.
However, it transpires that GAD did not undertake reviews between 1998 and 2006 as it was required to do by statute and the Home Office did nothing about it. If reviews are undertaken it may mean that officers who retired between 1998 and 2006 could receive enhanced commutation payments. Because of the length of time it can only be brought about by a complaint to the Pensions Ombudsman on the grounds the individual officer has just found out about the error.
This Â could apply to some members of ADPO as well as other retired officers in England and Wales whether they retired with a policemanâ€™s ordinary pension, ill-health pension (commutation does not apply to a police officerâ€™s injury award).
Will individual members advise whether they areÂ aware of the issue and whether it could apply to them.
It does appear that some Federation areas are dealing with this issue as this situation occurred whilst Federated this should be the first “port of call”.
It may be a consideration to pass the information to local NARPO Branch Secretaries for circulation to their local members who may be effected.
Some further information at www.rpoas.org.uk/news.htm
The following was posted earlier on the blog:
Taxation of Commuted Lump Sum following Employment
There is alsoÂ tax issue on commutation regardingÂ retirement and then immediate re-employment by the force without having sufficient time gap.
If you are affected by this it does appear that notification will be sent to you.
Further to the above the Surrey Police Federation writes:
Thanks for passing on the above information.
I have emailed the Police Authority Treasurer, Ian Perkin and asked for an urgent meeting to see whether on not this affects any of our retired Officers.
Once I have had the meeting I will let you know the result which can be passed on to all.
Until then can I please ask you to send out another email to all asking them not to contact this Office until I have had this meeting. Within 5 minutes of your original email our phone has become red hot with retired officers wanting to know if this affects them. Of course we will be very pleased if any of them are to receive any money but we will not be able to help them until we have more information from the Police Authority.
Many thanks and best regards.
PS.767 Simon Moxon.
â€œYour representation, your interests, our priorityâ€
13 Munstead View
GUILDFORD. Surrey. GU3 1HG