What is the Scape discount rate?
The Superannuation Contributions Adjusted for Past Experience (SCAPE) are reviewed in unfunded public sector schemes after valuation. The Scape discount rate is used to:
- Set employer contribution rates at valuation for unfunded public service pension schemes, like the Teachers and NHS. Valuations at March 2024 are currently being done and will bring new employer contribution rates from 1 April 2027 for these schemes. Note, as the LGPS is a funded scheme contribution rates are not impacted.
- Set actuarial factors for all public service pensions, including the LGPS. This will impact transfer CETV calculations, early and late retirement and additional contributions (APC’s).
What is changing?
The factors for calculations will be changed by the Government Actuary Department over the next few months and whilst these are introduced, all LGPS Funds will have to suspend certain calculations. We have already paused transfer calculations for members, and it is expected that retirements will be suspended in the next few weeks, awaiting revised factors. This will have an impact on employers requesting flexible and redundancy retirement quotes and to our members wanting to take standard retirement.
If you have any questions regarding this, please contact us.