An increase in employee pension contributions set out last month by the government could threaten 10,000 police jobs.
Chief Constable Sara Thornton, chairman of the National Police Chiefs' Council, revealed the changes to public sector pension schemes meant that forces in England and Wales might need to find an extra £417m by 2020/21.
She said: "This is equivalent to nearly 10,000 officers and grave concern was expressed about further reducing the sustainability of local police forces.
"This matter has been raised with the government and discussions are being held."
The government is proposing to change the discount rate used to assess the current cost of future payments from public sector unfunded schemes.
There are currently more than 5 million active members in these pension funds, which cover the NHS, teachers, the armed forces, the police, firefighters, local government workers, the judiciary and civil servants.
After a discount rate cut from 3 to 2.8 per cent in the 2016 Budget, HM Treasury is now proposing to reduce it to 2.4 per cent, "to reflect the Office for Budget Responsibility’s long-term growth forecasts", Elizabeth Truss, the chief secretary to the Treasury, has said.
FTAdviser understands this change would substantially increase the employer contributions in unfunded schemes - to the tune of £4bn.
The Treasury will be supporting departments with any unforeseen costs for 2019/20, Ms Truss noted.
Sir Steve Webb, director of policy at Royal London and former pensions minister, said: "It is ironic that the public sector is reducing discount rates at a time when most other schemes are increasing them.
"The whole funding and accounting for public service schemes remains opaque, and repeated changes, which could include reductions in member benefits, do nothing for stability and understanding."
Beyond 2019/20, the extra money public-sector employers will have to find comes from budgets to be set in the upcoming Spending Review.
maria.espadinha@ft.com
