SCAPE Discount Rate Changes

The Minister for Pensions, Torsten Bell, confirmed in a Written Ministerial Statement on 19 May, that the SCAPE discount rate has been updated following the publication of long-term GDP growth figures in July 2025. The new SCAPE* discount rate is now CPI plus 2%, increased from CPI plus 1.7%.

*SCAPE (Superannuation Contributions Adjusted for Past Experience) is the method used to set employer contribution rates for the Local Government Pension Scheme.

The SCAPE discount rate is used to calculate actuarial factors within the Local Government Pension Scheme (LGPS). 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 from them.

What this means for LGPS members

The change means that all scheme factors have needed to be reviewed. As a result, the following calculations are being processed manually which takes longer than usual:

• Cash Equivalent Transfer Values (CETVs)
• Certain types of linkings and interfunds in/out
• Divorce calculations
• Non-club transfers in

Retirements

We have now returned to business as usual having received the new retirement factors and processed all stockpiled cases.

Online estimates

If you run an online estimate please be aware that any early or late retirement adjustments to benefits will not be correct until we receive new factors and update our systems. 

Next steps

We'll continue manual calculations for divorces and transfers until our administration software has been updated. We'll continue to keep this page up-to-date.

Updated 10/08/2026