The Minister for Pensions (Torsten Bell MP) has now made a written ministerial statement confirming that 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%.
THE SCAPE discount rate is used to determine the actuarial factors in the LGPS.
Impact
The SCAPE announcement will trigger a review of all scheme factors. We expect the following calculations will need to be suspended immediately following the announcement:
- Cash Equivalent Transfer Values (CETVs).
- Pensioner cash equivalents.
- Non-club transfers in.
The increased rate came into effect on 19 May 2026.
In the LGPS, this means that some non-club transfers and interfund calculations, and all CEVs for divorce purposes will need to be suspended until the new factors are issued.
The Fund will re-start carrying out calculations as soon as new factors become available.
Please be patient with the Fund during this period as we will resume this work as quickly as possible.
* SCAPE (superannuation contributions adjusted for past experience) is the process for setting employer contribution rates at valuations for the Local Government Pension Scheme.
