Teachers’ pension scheme valuations
Valuations of the NHS Pension Schemes (Scotland) must be undertaken every four years to measure the costs of benefits being provided. Each valuation follows HM Treasury directions and regulations and are carried out by the Government Actuary's Department on behalf of the Scottish Government based on scheme data held at March of the relevant year.
The latest valuation of the STPS has recently concluded and was based on scheme data as at March 2020. The valuation has set the rate for the period 1 April 2024 to 31 March 2027 and that rate is 26%. In addition, the valuation also measured the movement in the employer cost cap. The employer cost cap was not breached, so there is no requirement for adjustments to be made to scheme benefits.
In the Chief Secretary to the Treasury’s statement announcing the change in the discount rate, the UK Government committed to provide funding for increases in employer contribution rates resulting from the 2020 valuations as a consequence of changes to the SCAPE discount rate. This commitment is for employers whose employment costs are centrally funded through departmental expenditure. The extent of that funding is still to be confirmed by HM Treasury.
Under existing legislation, the next valuation will be based on scheme data as at 31st March 2024 and will set the employer contribution rate for the period 1 April 2027 to 31 March 2031.
You can find the 2020 valuation report and supporting documentation below: