On 19 May 2026, HM Treasury announced a change to the SCAPE discount rate, which is used in some public service pension calculations. This change does not reduce the pension benefits you have built up. However, it may affect some calculations, including:
- a cash equivalent transfer value (CETV) where benefits are to be transferred to another pension scheme
- a CETV for divorce purposes
- a transfer in credit where benefits are to be transferred to the NHS Pension Scheme
CETV calculations are currently paused because of the change to the SCAPE discount rate. This change means that the assumptions used to calculate CETVs are being updated and there will be new factors. Until the updated factors are received, any values calculated using the previous factors are subject to change. Because of this, calculations are paused to ensure that members receive reliable valuations.
The change to the SCAPE discount rate means the cost of future pension payments is now valued as lower in today’s terms and as a result, a CETV may also be lower. This reflects a change in how values are calculated and is not a reduction to your pension benefits.
If you are transferring out
You may be affected if you are transferring to a Scheme that is not in the Public Sector Transfer Club, or your transfer is being made on non-Club terms. The CETV will change once the updated factors are received.
If you have already received a guaranteed CETV, and you return the option forms within the guarantee period, the value will not change.
Pensions on Divorce
This may affect you if you are in the process of sharing your pension.
In some urgent cases, a provisional value may still be provided. If we need to provide a CETV before the updated factors are received (for example you have an imminent court date), we will let you know the CETV is subject to change and provide a revised value once the updated factors are received.
If you have recently received a CETV for divorce purposes and would like a revised quotation when the factors are updated, please visit our website and complete the PD1 form, there will be no charge for the recalculation.
If you are transferring in
This may affect you if you are transferring benefits into the NHS Pension Scheme. We may need to pause your transfer while we wait for the updated factors.
General information about the SCAPE rate
The SCAPE rate is the ‘Superannuation Contributions Adjusted for Past Experience’. It is the Government’s framework used to work out employer contributions and costs for public service pension schemes.
The SCAPE discount rate is used to help calculate the value of future pension benefits in today’s terms. In simple terms, SCAPE is the system the Government uses to work out how much public service pensions cost. The change affects all unfunded public service pension schemes, including the NHS Pension Scheme.
The SCAPE rate affects how certain calculations are made within the pension scheme, but the pension scheme rules do not change, and there is no change to the value of the pension benefits you have built up.