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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

Author

Listed:
  • Rowena Crawford

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Richard Disney

    (Institute for Fiscal Studies and University of Sussex)

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.

Suggested Citation

  • Rowena Crawford & Richard Disney, 2013. "Reform of ill-health retirement of police in England and Wales: impact on pension liabilities and the role of local finance," IFS Working Papers W13/06, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:13/06
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    References listed on IDEAS

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    1. 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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    More about this item

    Keywords

    Police pensions; ill-health retirement; state and local finance;
    All these keywords.

    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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