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Reform of ill-health retirement of police in England and Wales: impact on pension liabilities and the role of local finance

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  • Rowena Crawford

    ()
    (Institute for Fiscal Studies)

  • Richard Disney

    ()
    (Institute for Fiscal Studies)

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    Abstract

    We examine ill-health retirement of police officers in England and Wales between 2002-3 and 2009-10. Differences in ill-health retirement rates across forces are statistically related to area-specific stresses of policing and force-specific differences in human resources policies. Reforms to police pensions plans- in particular a shift in the incidence of financing ill-health retirement from central government to local police authorities- impacted on the level of ill-health retirement, especially among forces with above-average rates of retirement. We find that residual differences in post-2006 ill-health retirement rates across forces are related to their differential capacities to raise revenue from local property taxes. We quantify the impact of these reforms on overal pension plan liabilities.

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    Bibliographic Info

    Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W13/06.

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    Date of creation: Mar 2013
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    Handle: RePEc:ifs:ifsewp:13/06

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    Keywords: Police pensions; ill-health retirement; state and local finance;

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