Published 16 March 2016
Last updated 31 March 2023 — See all updates
Basis for setting the
discount rates for calculating cash equivalent transfer values
payable by public service pension schemes
Details
As a result of the announcement of the new
SCAPE discount rate, the guidance on this page is no longer valid
and should not be used. New guidance will be published shortly.
Please suspend CETV activities that require the use of the rates
included in this guidance until the new guidance has been
published.
This is a technical note on the discount rates to be used by the
scheme managers of public service pension schemes in calculating
transfers payable from the schemes.
Deferred members of pension schemes may choose to transfer their
pension benefits to appropriate alternative pension schemes in
some circumstances.
Transfer values are also used in assessing the pension component
of assets of a marriage or civil partnership during divorce or
dissolution proceedings. This guidance updates the discount rates
that are used in the calculations, bringing them into line with a
change made at Budget 2018 to update the discount rate used in
undertaking valuations of the pension schemes as a whole.
The guidance applies to the unfunded public service pension
schemes and the local government pension schemes in England,
Wales, Scotland and Northern Ireland and the schemes should adopt
the updated discount rates with immediate effect.
