The UK Government has today confirmed the SCAPE (Superannuation Contributions Adjusted for Past Experience) discount rate to be used in valuing public service pension schemes. Details can be found in the written Ministerial statement.
The SCAPE discount rate is the key financial assumption used for scheme valuations, and the main driver for setting the employer contribution rates which will apply from 1 April 2027. These contribution rates are set to cover employers’ share of the value of member benefits being earned in the schemes.
Now that SCAPE has been confirmed, the Government Actuary’s Department will take steps to produce updated actuarial factors used in scheme calculations, including transfer and early or late retirement. Factors are reviewed from time to time and this applies to all public service schemes.
Most members will be unaffected by this change in the short term. There will be no impact on retired members who are entitled to make a Remedy choice however some members who are transferring benefits may see a slight delay to the processing of their casework. Other factors impacted include the commutation factors for lumps sums in the legacy police and Firefighters’ schemes.
New factors will be introduced in a phased approach over the next six months. Until our online pension calculators have been updated with the new factors, please treat any calculations as an estimate and do not rely on them to make any retirement or financial decisions. We will do our best to minimise any disruption to members.