Publication

60-second summary: The impact of the change in SCAPE rate on the LGPS

calendar icon 08 July 2026
time icon 5 min

Author

Rnotman
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Reece Notman

Senior Actuarial Consultant

The government has increased the SCAPE (Superannuation Contributions Adjusted for Past Experience) discount rate from 1.7% above the Consumer Price Index (CPI) inflation to 2.0% above CPI. While this change primarily affects unfunded public service pension schemes, it also has implications for Local Government Pension Scheme (LGPS) funds through administration factors and cost control mechanisms. 

In this 60-second summary, we explain what the change means for LGPS funds, including the impact on cash equivalent transfer value (CETV) factors, early retirement quotations and the cost control process. We also highlight why the change isn't expected to affect recently issued 2025 valuation results.

Read the summary to understand:

  • why the SCAPE rate has changed and who is most affected
  • how new Government Actuary's Department (GAD) factors are reducing CETVs
  • what funds should consider when providing early retirement quotations
  • the potential implications for the LGPS cost control mechanism
  • why the change is unlikely to affect the outcome of the Scheme Advisory Board's separate cost management process

Download the publication

If you would like to discuss the topics further, please get in touch. 

 

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances.  HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party. Hymans Robertson LLP is a limited liability partnership registered in England and Wales with registered number OC310282. Authorised and regulated by the Financial Conduct Authority and licensed by the Institute and Faculty of Actuaries for a range of investment business activities. © Hymans Robertson LLP 2026. All rights reserved.  

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