Employment flexibilities - retention of officers after 30 years service

Report: 8
Date: 17 May 2001
By: Clerk

Summary

At the full Authority meeting on 18 April a paper on the scope to attract officers to work on after they have achieved 30 years was considered. It was resolved, amongst other things that a dialogue should continue with the Home Office to achieve greater flexibility in the Police Pensions Regulations to encourage officers to remain or rejoin after 30 years' service. The Home Office and APA are now seeking views on whether anything should be done to encourage more police officers to continue to serve once they have completed 30 years' service.

A. Recommendations

1. Subject to Members' views and comments, the draft response to the APA at Appendix 1 should be sent to inform the dialogue with Home Office.
2. The MPA support, and wants, a vigorous and robust pilot scheme for the MPS.

B. Supporting information

1. The Home Office and APA are seeking the views of police authority Members (see Appendix 2) on whether anything should be done to encourage more police officers to continue to serve once they have completed 30 years' service. The issue has now reached the media (see Appendix 3).

2. As noted in the paper to the full Authority, there is no specific bar to the re-employment of retired police officers. There are, however, a number of factors to be taken into account when considering this possibility:

• an officer who had retired after 30 years' service would have his or her pension withheld during the second period of service, although the commuted lump sum would be paid (Reg. K4, Police Pensions Regulations 1987). This would have a significant financial impact on the budget if police officers who have already completed 30 years' service or who may have previously remained in service anyway took a 'lump sum', thus bringing forward their commutation payments. In the first year, this could be a very significant sum if police officers already over 30 years' service take this option;
• the second period of service would count towards a second pension entitlement and a second lump sum, although the officer could opt out of the pension scheme.
• the officer would have to satisfy the health criteria required of a newly recruited constable by being in good health, of sound constitution and fitted both physically and mentally to perform the duties (Reg. 12, Police Regulations 1995). After the age of 55, this would include annual health checks.

3. Amongst the other issues Members will wish to consider in response to the Home Office consultation paper are:

• Should retention only be offered to operational police officers or those roles where there is a skills shortage (ie: not officers performing roles which do not require police knowledge or powers)?
• Should the option only be available to more junior ranks in order to improve promotion opportunities?
• Should there be a fixed term for police officers remaining after 30 years' service or an upper age limit beyond which police officers will not be retained?
• Should there be an extension to the pay range or an annual pensionable bonus for police officers serving beyond 30 years' service to significantly increase the lump sum and pension upon retirement?
• Who should decide if a police officer is able to exercise this option? (Unless a police officer has reached normal retirement age, is medically retired or dismissed there is no sanction to 'remove' police officers after 30 years' service)
• Are there other issues not addressed in the consultation paper?

4. The MPA should be taking a lead role in this development given the recruitment and retention problems in the MPS. The MPA should support and monitor a pilot scheme in the MPS at the earliest opportunity.

C. Financial implications

Depending on how the regulations are amended and the management arrangements for this option, the budget impact could be very significant. Further work should be carried out on the financial implications before committing to any specific proposal.

D. Background papers

• Report to the Full Authority Meeting - Retention or re-employment of police officers after 30 years' service - 19 April 2001

E. Contact details

The author of this report is Alan Johnson.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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