By Adam Morris
Pension bosses in Scotland face a new headache after it emerged that dozens of serving officers who want to retire are “trapped in the job” because of a loophole.
It is understood there could be as many as 90 cops who are effectively ineligible for retirement as part of a wider pensions crisis facing public sector organisations across the UK.
The problems affect those who opted out of controversial pensions changes to make terms less favourable in 2015, their scepticism being proved correct when the changes in question were ruled unlawful years later.
But despite that vindication, the legislation does not regard these individuals – three of whom have spoken to 1919 – as having unbroken service, even if they pay the money they would have contributed during that period of exclusion.
As a result, they are forced to keep working, shelving career and personal ambitions, with the limbo taking its toll on their mental health.
The Scottish Public Pensions Agency (SPPA), which is tasked with resolving the matter, said it was working with both the UK and Scottish governments “to deliver a solution”.
It represents another challenge for the body, which is already struggling to process thousands of new settlements for public servants impacted by the so-called McCloud Remedy.
The three serving officers spoke to 1919 on the condition of anonymity. All would be free to retire thanks to their age and length of service, had they not opted out of the 2015 scheme.
The complexities arise because the law does not enable them to re-enter on the same terms as they left, instead forcing them into the less beneficial ‘2006 pensions scheme’, as opposed to the ‘1987 scheme’ under which they began their service.
One said: “I opted out the scheme in 2015 because I could see it was unfair and not what I signed up for, then came back in when it was going through the courts and was clear it would be ruled unlawful.
“I had planned to emigrate, to spend some time living abroad, but because of this I can’t do that. I’m getting older and it’s all just on hold.
“I can’t do any financial planning at all because I don’t know what my pension settlement is going to be.”
A second officer said they had invested in starting a new business on the assumption they would be able to retire, but have instead been forced to continue working within the force.
“Others have been able to leave, to start new careers, to get into new things and we can’t”
Serving Police Scotland officer
“It means I’m paying for all the investment I made while not actually being able to work on it,” they said.
“I’m trapped in a job I shouldn’t be in, and my mental health has suffered badly as a result.”
A third officer added: “Our decision to come out the scheme was proved right in the courts. We’re in this situation through no fault of our own.
“Others have been able to leave, to start new careers, to get into new things and we can’t.
“The benefit of being a police officer is you can do your time and then leave to start another career, using the skills you’ve learned.
“But obviously the longer you’re in the job, the older you get, and the more difficult that becomes.”
Known as ‘contingent decisions’, campaigners estimate there are around 90 officers affected in this way north of the border.
It presents yet another challenge to the SPPA, which is already under fire for the late processing of settlements of retired officers who were forced out of the 1987 scheme and placed into the Career Average Revalued Earnings (CARE) package.
“Our officials are working hard to deliver a solution”
Scottish Public Pensions Agency
In addition, some officers who receive injury or ill-health pensions have been asked to pay money back as part of the calculation.
Martin Gallagher, a retired superintendent who heads up the ‘Job’s Forgotten’ group, which has campaigned for improved settlements for hundreds of Scottish officers, described the situation for contingent decision officers as “astonishing”.
He added: “These people have fulfilled the criteria but the job isn’t letting them go. The authorities know these officers should be able to retire and they know how much they should be due.
“It is not on these officers to find the solution – they are not the ones who did something unlawful.”
A spokesperson for the SPPA said: “Our officials are working hard to deliver a solution that enables police pensions scheme members to buy back service in the 1987 scheme, where they had previously opted out.
“This work has been complicated by the UK Government’s decision not to resolve the issue by amending the primary legislation.
“Discussions are ongoing between the Scottish and UK governments about what can be done within the existing legislative framework.
“Once a workable solution is developed, we will update affected officers on timescales and buy-back options.”
