Guidance

Basis for setting the discount rates for calculating cash equivalent transfer values payable by public service pension schemes

Technical note on the discount rates to be used by the scheme managers of public service pension schemes in calculating transfers payable from the schemes.

• From: HM Treasury
• Published: 16 March 2016
• Last updated: 27 April 2023 — See all updates

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Basis for setting the discount rates for calculating cash equivalent transfer values payable by public service pension schemes

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This is a technical note on the discount rates to be used by the scheme managers of public service pension schemes in calculating transfers payable from the schemes.

Deferred members of pension schemes may choose to transfer their pension benefits to appropriate alternative pension schemes in some circumstances.

Transfer values are also used in assessing the pension component of assets of a marriage or civil partnership during divorce or dissolution proceedings. This guidance updates the discount rates that are used in the calculations, bringing them into line with the change to the SCAPE discount rate announced on 30 March 2023.

The guidance applies to the unfunded public service pension schemes and the local government pension schemes in England, Wales, Scotland and Northern Ireland and the schemes should adopt the updated discount rates with immediate effect.

Published 16 March 2016
Last updated 27 April 2023 + show all updates

1. 27 April 2023

   This page has been updated to reflect new published guidance which updates the discount rates used for calculating cash equivalent transfer values payable by public service pension schemes, bringing them into line with the change to the SCAPE discount rate announced on 30 March 2023.

2. 31 March 2023

   guidance suspended as a result of discount rate announcement

3. 14 November 2018

   Revised guidance published to bring into line with Budget 2018.

4. 16 March 2016

   First published.