5 April 2023
The Police Federation of England and Wales (PFEW) welcomes the Government’s response to the consultation on the Superannuation Contributions Adjusted for Past Experience (SCAPE) discount rate, which has resulted in an update to the Police Pension Scheme 1987 commutation factors.
This will directly and positively affect pension benefits of police officers at the time of retirement by increasing the rate at which pension is converted into a commutation lump sum at retirement. The new factors are effective from 3 April 2023, and PFEW acknowledges that the revised SCAPE discount rate and subsequent updated factors have come into immediate effect, without providing stakeholders with advance notice so that they could make members aware.
Whilst the Government has not allowed for the updated factors to be implemented with retrospective effect, members who are planning an imminent retirement (or retired on or after 3 April 2023) are advised to contact their pension administrator for further clarification and assistance.
You can find more information about the SCAPE discount rate methodology consultation here and The Chief Secretary to the Treasury John Glen’s statement here.