SCAPE discount rate adjusted – a note for members

The Minister for Pensions (Torsten Bell MP) has published a written ministerial statement confirming that the Scheme discount rate (SCAPE) has been adjusted from 19 May 2026. The discount rate is used to set actuarial factors used within the Local Government Pension Scheme  for certain calculation types. 

What does this mean for Local Government Pension Scheme members?

1.        Suspension of calculations relating to pensions on divorce and non-Club* transfers

As a result of the change, the factors used to calculate transfer values for non-club* transfers and pension on divorce need to be changed with immediate effect. Club transfers (those between public service pension schemes) will continue to be calculated as normal.

* A non-club pension transfer is the process of moving retirement benefits from a registered private sector, personal, or non-participating public service pension scheme to a new provider.

What calculations are suspended at present?

Until the new factors are received, we’re unable to:

  • process new requests for estimates in relation to non-Club transfers-in
  • provide final service or pension credit values in relation to non-Club transfers-in
  • provide guaranteed transfer values for non-Club transfers-out
  • provide Cash Equivalent Value (CEV) estimates for pension on divorce 
  • implement pension on divorce orders with a pension share date where the effective date of the divorce was on or after 19 May 2026.

We’ll process any requests received by members once the new factors have been made available. We are expected to receive the updated factors over the next six-months. These timings are subject to change. If a member has already received a guaranteed transfer value (GTV) in relation to a prospective transfer-out, any request to proceed within the three-month guarantee period will be honoured.

2.        Retirement quotes

We will continue to process retirement cases, but where there is a discount factor used in a calculation (for example an early retirement reduction or late retirement increase) members should be aware that the Government Actuary’s Department will be publishing revised factors.  However, we do not know what the revised factors will be or the date they will apply from. Therefore, if you are seeking to retire early or late, please be aware that your benefits may change once we receive the revised factors.

There may be a short delay in putting your benefits into payment whilst our systems are updated, but 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 via ‘My Pension’

If you run an online estimate via ‘My Pension’ 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 continue to keep this page up to date with any further news.