SCAPE Discount Rate changes FPS
On 19 May the Government announced a change the SCAPE* discount rate, which is used by public sector pension schemes in a variety of calculations.
The SCAPE discount rate has been adjusted to take into account the long-term GDP growth figures published in July 2025. Based on these figures the new SCAPE discount rate is CPI plus 2%. This is a change from CPI plus 1.7%. This means that means that a factor review has now been triggered, and calculations that rely on actuarial factors will be affected. This includes, but is not limited to, lump sum commutations in FPS 1992, early retirement reductions, transfers, pension debits, and added pension calculations.
* SCAPE (superannuation contributions adjusted for past experience).
The Government Actuary's Department (GAD) is responsible for producing new factors. We don't yet know when we will receive all the required factors. Below is the current situation for members.
Commutation factors in FPS 1992
Revised commutation factors for the Firefighters’ Pension Scheme 1992 (FPS 1992) have been introduced from 21 May 2026 and take immediate effect.
The revised factors have reduced, meaning that for FPS 1992 benefits, members who choose to take a lump sum will receive less than would previously have been payable under the old factors. The exact impact will depend on individual circumstances, but early indications suggest this may be in the region of around 5%.
We will be contacting immediately affected members directly. If you have;
- already made your lump sum election and returned your completed Pension Claim form to WYPF we will contact you with the new lump sum figures, and a new form to amend your decision (if you wish to)
- already received your Retirement Pack but have not yet completed your Pension Claim form a new Retirement Pack and Pension Claim form will be sent to you as soon as possible so that you can make your decision based on the correct figures
- not yet received your Retirement Pack and Pension Claim form, you will receive a correct one in due course. We will be processing cases based on date of retirement (soonest first).
Retirements with FPS 2006 or FPS 2015 membership
We do not yet have new factors from GAD to use where retirements include any early or late retirement adjustments.
We will now continue to calculate and pay retirement benefits using the existing factors until we are given new ones, which we have been told by LGA will not be retrospectively applied.
We had previously intended to delay payment of reduced FPS 2006/2015 benefits until the revised factors were received to ensure that members were paid the correct pension, but following dialogue with the LGA and FBU, we have decided to change our approach.
Transfers and divorce cash equivalent calculations (CETVs)
We received new factors for transfers (CETV) and divorce calculations from GAD on 27 May. This is being referred to as ‘Batch 1’ of new factors following the change to the SCAPE discount rate confirmed previously.
The following cases will now be processed with the new factors:
- Cash Equivalent Transfer Values (CETVs)
- Pensioner cash equivalents
- Pension credits
- Pension debits
Other types of calculations
Unfortunately, we're currently unable to process any calculation relating to added pension calculations. These cases will be stockpiled until we receive updated factors from GAD. We will then resume these work areas.
Keeping you up to date
We will keep your FRA and this page of our website updated with the latest information. If you have any question in the short-term please contact your FRAs pension team in the first instance.
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