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Actuarial Guidance

Scottish Ministers are required to issue actuarial guidance under the 2018 LGPS Scotland Regulations for the new Local Government Pension Scheme (Scotland) 2018. This includes guidance for the following:

  • Additional Pension
  • AVCs Conversion to Additional Pension
  • Early retirement Factors
  • Flexible Retirement
  • Individual Transfers
  • Interfund Transfers
  • Late Retirement
  • Lifetime Allowance - Maximum Benefits
  • Pension Credits
  • Pension Debits
  • Trivial Commutation
  • Scheme Pays & Cash Commutation

2019

The Government Actuaries Department (GAD) has revised the LGPS Scotland Pension Scheme's CETV factors following HMT's published change to the discount rate used for calculating CETVs. The impact of the change in the discount rate is to increase all CETV factors.

The attached workbook contains the revised factors which are based on a SCAPE discount rate of 2.4% net of benefit increases.

The workbook also provides replacement factors for Additional Pension, AVCs Conversion to Additional Pension, Early retirement Factors, Flexible Retirement, Individual Transfers, Interfund Transfers, Late Retirement, Lifetime Allowance - Maximum Benefits, Pension Credits, Pension Debits, Trivial Commutation, Scheme Pays & Cash Commutation.

The table in the workbook (and how they correspond to the factors table in the guidance documents) are explained in the 'Factors List' tab of the spreadsheet.

CETV Factors Workbook

Addendum - Non Club GMP adjustment: LGPS Scotland Individual Incoming & Outgoing Transfers, & LGPS Scotland Pensioner cash equivalent factors on divorce (February 2018)

Local Government Pension Scheme (Scotland) Purchase of additional pension – contracts commencing on or after 1 April 2015 or paid for by the employer

Application of a Pension Credit to the Former Spouse or Civil Partner of the Member (post-2015 members)

2018

The Government Actuaries Department (GAD) has revised the LGPS Scotland Pension Scheme's CETV factors following HMT's published change to the discount rate used for calculating CETVs. The impact of the change in the discount rate is to increase all CETV factors.

The attached workbook contains the revised factors which are based on a SCAPE discount rate of 2.4% net of benefit increases. The workbook provides replacement CETV and Pensioner Cash Equivalent factors for those currently included in our guidance notes.

The table in the workbook (and how they correspond to the factors table in the guidance documents) are explained in the 'Factors List' tab of the spreadsheet.

CETV Factors Workbook

Addendum - Non Club GMP adjustment: LGPS Scotland Individual Incoming & Outgoing Transfers, & LGPS Scotland Pensioner cash equivalent factors on divorce (February 2018)

2017

2016

2015

LGPS individual transfers - Clarification of the definition of “public service scheme”

One of the protections given to members of the final salary public service pension schemes is to link the pension awarded to the final salary at retirement rather than the date that accrual ceased in the scheme. This protection also applies to members who have left a public service pension scheme and later re-joined the same or another public service scheme provided that the gap in service is no more than five years.

This protection affects the form of benefits awarded if the member transfers pension benefits from a different public service pension scheme.

For the purpose of this protection, “public service scheme” is defined in the legislation. Authorities should check whether a scheme is a public service scheme or not. Not all members of the transfer Club are public service schemes. Some schemes which are public service schemes are:

  • Local Government Pension Scheme
  • NHS Pension Scheme
  • Teachers Pension Scheme
  • Civil Service Pension Scheme
  • Armed Forces Pension Scheme
  • Police Pension Scheme
  • Firefighters Pension Scheme

(this applies to all the schemes applying in the different constituent countries of the UK)

Legislative and Actuarial Guidance references

Paragraph 6.5 of the actuarial guidance on individual transfers dated 2 April 2015 applies to members who have not had a continuous break in active membership of more than five years in any public service pension scheme.

The final salary link is legislated for in regulation 9 of the LGPS(S) Transition Regulations; this uses the same definition of “Public Service Pension Scheme” as the Pension Schemes Act 1993. That definition is:

“"public service pension scheme" means an occupational pension scheme established by or under an enactment or the Royal prerogative or a Royal charter, being a scheme-

  1. all the particulars of which are set out in, or in a legislative instrument made under, an enactment, Royal warrant or charter, or
  2. which cannot come into force, or be amended, without the scheme or amendment being approved by a Minister of the Crown or government department or by the Scottish Ministers, and includes any occupational pension scheme established, with the concurrence of the Treasury, by or with the approval of any Minister of the Crown or established by or with the approval of the Scottish Ministers and any occupational pension scheme prescribed by regulations made by the Secretary of State and the Treasury jointly as being a scheme which ought in their opinion to be treated as a public service pension scheme for the purposes of this Act.”

The spreadsheets are to assist administrators and does not override the factors set out in the actuarial guidance documents themselves.

LGPS Scotland 2015 Transfer Factors

LGPS Scotland 2015 Scheme Factors

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