The Commutation Loan enables Police Officers and Police Staff to borrow up to £50,000 or 50% of your commutation entitlement (whichever amount is lower), up to 24 months prior to retirement. This is an interest-only loan and you will settle your balance in full once you retire and receive your commutation entitlement.

All loans are subject to affordability and our lending criteria.


✓ All applicants must be aged 18 or over and a UK or Isle of Man resident.
✓You must be in paid employment or have a regular income.
✓ Only members of the Credit Union can obtain a loan (you can apply for membership within your loan application).
✓ You must be expected to retire within 24 months of submitting your loan application.

Interest Rates for the Commutation Loan

Annual Percentage Rate10.9% APR
Interest charging InformationThe APR is fixed for the life of the loan. Interest accrues daily and is charged on a monthly basis.


Key Product Information

You may wish to speak to a Pensions Adviser or your pension department before making a decision on commuting part of your pension.

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.

Repayment InformationYou will make a fixed monthly payment equivalent to 31 days of interest on the total sum borrowed. This ensures that you always cover the maximum amount of interest that will be charged in any one month. Where payments are made in months of less than 31 days the additional amount will be paid off your outstanding loan balance.

You can repay the interest on your loan by payroll deduction or Direct Debit.

Repayment PeriodThe loan term will not exceed 24 months. Once you receive your commutation, you will be expected to repay the loan in full from your debit card.
Amount of loan availableYou can borrow up to 50% of your commutation or £50,000 – which ever is lower.
Application/ Arrangement FeeNone.
Missed Payment FeesNone. Missed payments can have a negative impact on your credit file.
Default FeesNone.
Early SettlementsYou can repay the loan at any time fully or partially without charge.
Other InformationThis loan is not a regulated consumer credit product. This does not affect your Financial Ombudsman rights.

Consolidating Debt

We allow our members to use our Commutation Loan as a means of consolidating existing borrowing. Consolidating could reduce your monthly outgoings, leaving you with more disposable cash each month. Care should be taken when consolidating debt. It may increase your total amount payable, or the period over which it is to be paid. 

If you are considering your options and are unsure what to do, seek independent financial advice. For more information on managing debt, click here to visit our financial wellbeing area for educational information.


Download key documents here

Commutation Loan Terms and Conditions

General Loan Terms and Conditions

What we need from you

If you wish to apply for a Commutation Loan you will need to provide an up-to-date pension forecast to establish your commutation amount, and you must be within 24 months of your retirement date. You can upload a copy of your pension forecast within the loan application form, or you can email it to us at

Would you like a quote?

If you would like us to provide a quote to show what your monthly repayments could be on this loan, you can contact usAlternatively, you can complete the form below and a member of the team will be in touch.If you’re not within 24 months of retiring, we can still provide you with a quote and a member of our team will be in touch once you are within two years of retirement.

You’re covered with Life Protection

Life Protection is included with all our loans and covers members before your 70th birthday. This does not cost you anything, it is simply another benefit of borrowing from the Credit Union and has been created purely to help our members.

Loans are protected up to a maximum of £40,000 per member. This means your loan would be cleared, ensuring your debt does not remain outstanding, subject to our terms and conditions.

All benefits are paid at the discretion of our Board of Directors. Life Protection is not an insurance policy and is not guaranteed. For more information please click here.

Need help?

If you are experiencing financial difficulty or are struggling to repay you loan with us, Please contact us as soon as possible.