No1 CopperPot doubles Commutation Loan limit to £100,000

If you’re a police officer or police staff within two years of retirement, there’s good news: our Commutation Loan limit has increased from £50,000 to £100,000.

You can now access up to £100,000, or 50% of your commutation entitlement, (whichever is lower), up to 24 months before your planned retirement date when you take out a Commutation Loan. That’s double what was previously available, giving you more flexibility.

Why we’ve made this change

Retirement rarely arrives with one simple, tidy financial decision attached to it. For many officers and staff, it’s as much a moment to celebrate, marking the end of a successful career and the start of an exciting new chapter, as it is a time for practical planning.

Alongside that celebration come several considerations: clearing existing debts before income changes, helping family, funding home improvements, or getting ahead of a major cost before the pension lump sum lands.

Raising the limit means more members can put their money to work when it matters.

What stays the same

The mechanics of the loan haven’t changed, only the maximum amount available to borrow:

• Interest-only for the life of the loan, settled in full once your pension lump sum arrives
• 10.9% APR, fixed for the life of the loan
• No charge for early or partial repayment
• Life Protection included as standard, covering loans up to £40,000 up to your 70th birthday, at no extra cost

If you’re borrowing specifically for debt consolidation, the maximum available remains £50,000; the increase applies to the loan’s overall purpose, not this specific use case. All loans remain subject to affordability and our standard lending criteria, and missed payments can affect your credit file.

Please be aware that if you do not make the full and final payment from your pension commutation, the loan may be converted to a capital and interest repayment loan at the Member Loan interest rate prevailing at the time of conversion.

Borrowing for debt consolidation?

The maximum loan available for debt consolidation remains £50,000. The increase in borrowing limits applies to other eligible loan purposes only.

Important information

All loans are subject to affordability checks and our lending criteria. Missing repayments could affect your credit score and make it harder to borrow in the future.

Is a Commutation Loan right for you?

A larger limit is only useful if it fits a proper plan. Before applying, it’s worth speaking to a Pensions Adviser, Independent Financial Adviser, or your pension department so any decisions you make are supported with full information.

Our Preparing For Retirement guide is a good next stop if you’re still working out the bigger picture: it covers getting an accurate pension forecast, understanding tax implications, and where to find free, impartial guidance like MoneyHelper. If debt is part of what you’re hoping to clear, our Managing Debt information is worth a read too.

FAQs

Is a Commutation Loan the same as taking early retirement?

No. A Commutation Loan doesn’t bring forward your retirement date. It’s an interest-only loan created for people who plan to commute a chunk of their pension upon retirement, allowing them to repay the loan in full at that point.

Is there an age limit to apply?

The Commutation Loan is designed specifically for members who are approaching retirement and expect to receive a pension commutation payment.

As the loan is intended to be repaid from the member’s future pension commutation, eligibility is based on proximity to retirement and the expected availability of the commutation payment, rather than simply the member’s age.

This means there is no specific age at which a member becomes eligible for the Commutation Loan. Instead, we consider when the member expects to retire and whether their expected retirement and pension arrangements mean that the loan is appropriate and can be repaid as intended.

How much can I borrow?

You may be able to borrow up to £100,000 or 50% of your pension commutation entitlement, whichever is lower. If you’re borrowing to consolidate existing debts, the maximum loan available is £50,000.

Should I speak to someone before applying?

Yes. Speaking to an Independent Financial Advisor, or your pension department is strongly recommended before applying. This will help make sure your decision fits your wider retirement plan.