Flashman,
You probably know me! I recall your handle. This has been legally clarified by the unit I used to work for. If you PM me I wil put you in touch with someone who is going thru this right now.
The bottom line is that from a police perspective they MUST offer you a continuation of your employment unless or until you resign or, are retired naturally. Now, at the moment that job is as a police pilot but there are external forces causing them to prevent you from continuing as a pilot because of your SPIFR status.
So LEGALLY they are obliged to offer you an equivalent position - guess what, there are non at this level in the force on this salary that you are 'qualified' to do. You could work for less in a lower scale job if you so wished and if there was a vacancy....
IF you choose NOT to stay on, then it means you have voluntarily retired and consequently your pension is capped proportionately. It is NOT of their doing, I think you'll find them saying....and guess what, legally, they are correct.
You are not alone and I assumed that this was resolved many moons ago. One pilot (Ian....?) took the CAA to court a while back...and lost!
Prepare to retire at 60!