In Budget 2018, the UK Government announced changes to the SCAPE Discount Rate which is used for financing purposes in public service pension schemes. The discount rate has been reduced from 2.8% above CPI per annum to 2.4% above CPI per annum, with a resulting impact on certain actuarial factors used in police pensions.
The purpose of Circular 2018/06 is to:
- Advise on the introduction of revised factors prepared by the Government Actuary’s Department for the purpose of calculating lump sums payable to retiring members under regulation B7 of the Police Pensions Regulations 1987. These factors should be applied to retiring members with effect from 31 October 2018.
- This updates the previous guidance dated 18 March 2016 which was outlined in Circular 6/2016.
For the SPPA Circular 2018/06 please click HERE
ASPS General Secretary