Public service pensions: Consultation on the discount rate methodology
This consultation seeks views on the methodology the Government uses to set the SCAPE discount rate.
The SCAPE discount rate is a discount rate used in the valuation of unfunded public service pension schemes to set employer contribution rates. It expresses future pension promises that are being built up in present-day terms and is set by HM Treasury following a prescribed methodology. The current methodology for setting the SCAPE discount rate has been in place since 2011. This consultation seeks views on the objectives for the SCAPE discount rate and the most appropriate methodology for setting the SCAPE discount rate going forward.
The government launched a separate consultation on changes to the cost control mechanism on 24 June. Its response to that consultation was published on 4 October. The government will respond to its consultation on the discount rate methodology in due course.