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 Actuaries 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 will now need to be reviewed. As a result, the following calculations are expected to be paused temporarily:
- Cash Equivalent Transfer Values (CETVs)
- Certain types of linkings and interfunds in/out
- Divorce calculations
- Non-club transfers in
Retirement quotes
We will continue to process cases, but where there is an early retirement reduction or late retirement increase the following information will be included with your quote.
"We have been made aware that the Government Actuary’s Department will shortly be publishing revised factors that are used in the calculation of early retirement reductions and late retirement increases. We currently do not know what the revised factors will be or the date they will apply from. Therefore, if you have an early retirement reduction or late retirement increase applied to your benefits, please be aware that your benefits may change once we receive the revised factors.
Once we have received the revised factors, there may be a short delay in putting your benefits into payment whilst our systems are updated. Please be assured that we will process your payment as soon as we can."
Imminent retirements
We will be dealing with these on a case-by-case basis depending on the type and date of retirement, and we will write to you personally with more information about your case.
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 will re-start calculations as soon as the new factors are available and continue to keep this page up-to-date.