The government has confirmed a change to the Superannuation Contributions Adjusted for Past Experience (SCAPE) discount rate.
The SCAPE discount rate is set by HM Treasury and is used to determine factors for a range of public service pension calculations.
Impact on the Local Government Pension Scheme (LGPS)
Transfers and Divorce quotes
Some transfer calculations, and all cash equivalent transfer values (CETVs) for divorce are currently on hold.
This is because the factors used to calculate these values have been withdrawn following the government’s announcement on 19 May 2026.
If you request a transfer or divorce quote after this date, we will acknowledge your request. However, we will not be able to process it until the updated factors are confirmed.
Early and late retirements
The change to the SCAPE discount rate also affects the factors used for early and late retirements.
We will continue to provide estimates using the current factors. However, the final amount you receive may be different. If you take your pension after the new factors are introduced, your pension is likely to be lower than it would be under the current factors.
The government has not yet confirmed when the new factors will be introduced.
Voluntary retirement estimates on My Pension Online
If you use the Voluntary Retirement Calculator on My Pension Online to estimate your pension for early or late retirement, please note that the adjustments to your benefits may not be accurate. This is because the updated factors for early or late retirement have not been finalised or added to the calculator.
Next steps
The Government Actuary Department (GAD) will issue the factors used by the LGPS in pension calculations. GAD are aiming to issue new factors in batches over the next 6 months.
We will not be able to process any suspended calculations until the relevant updated factors are received.
If you are affected by the suspended calculations, we will contact you directly to confirm this.