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Reform of police pensions in England and Wales

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  • Crawford, Rowena
  • Disney, Richard

Abstract

We analyse pension reforms for police officers in England and Wales using force-level data. We quantify the impact on overall police pension plan liabilities, examining incidence across police officers, national and local taxpayers. We also examine reforms of retirement rules, especially concerning early retirement on grounds of ill-health. Differences in ill-health retirement across forces are statistically related to area-specific stresses of policing and force-specific human resource policies. Reforms in 2006 impacted primarily on the level of ill-health retirement among forces with above-average rates of early retirement. We find that residual differences in post-2006 ill-health retirement rates across forces are related to differential capacities to raise revenue from local property taxes.

Suggested Citation

  • Crawford, Rowena & Disney, Richard, 2014. "Reform of police pensions in England and Wales," Journal of Public Economics, Elsevier, vol. 116(C), pages 62-72.
  • Handle: RePEc:eee:pubeco:v:116:y:2014:i:c:p:62-72
    DOI: 10.1016/j.jpubeco.2013.05.006
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    References listed on IDEAS

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    1. Rowena Crawford & Richard Disney, 2012. "Reform of Ill-health Retirement Benefits for Police in England and Wales: The roles of National Policy and Local Finance," NBER Working Papers 18479, National Bureau of Economic Research, Inc.
    2. Glaeser, Edward L. & Ponzetto, Giacomo A.M., 2014. "Shrouded costs of government: The political economy of state and local public pensions," Journal of Public Economics, Elsevier, vol. 116(C), pages 89-105.
    3. Inman, Robert P., 1982. "Public employee pensions and the local labor budget," Journal of Public Economics, Elsevier, vol. 19(1), pages 49-71, October.
    4. Gyourko, Joseph & Tracy, Joseph, 1989. "Local public sector rent-seeking and its impact on local land values," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 493-516, August.
    5. Poterba, James M & Rueben, Kim S, 1995. "The Effect of Property-Tax Limits on Wages and Employment in the Local Public Sector," American Economic Review, American Economic Association, vol. 85(2), pages 384-389, May.
    6. Leeds, Michael A., 1985. "Property values and pension underfunding in the local public sector," Journal of Urban Economics, Elsevier, vol. 18(1), pages 34-46, July.
    7. Dennis Epple & Katherine Schipper, 1981. "Municipal pension funding: A theory and some evidence," Public Choice, Springer, vol. 37(1), pages 141-178, January.
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    Citations

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    Cited by:

    1. Alexander M. Danzer & Peter Dolton & Chiara Rosazza Bondibene, 2016. "Who Wins? Evaluating the Impact of UK Public Sector Pension Scheme Reforms," National Institute Economic Review, National Institute of Economic and Social Research, vol. 237(1), pages 38-46, August.
    2. Rowena Crawford & Richard Disney, 2015. "Wage regulation and the quality of police officer recruits," IFS Working Papers W15/19, Institute for Fiscal Studies.
    3. Rowena Crawford & Richard Disney & Polly Simpson, 2018. "The determinants of local police spending," IFS Working Papers W18/09, Institute for Fiscal Studies.

    More about this item

    Keywords

    Police pensions; Ill-health retirement; State and local finance;

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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