This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
The Government has today launched a public consultation on the discount rate used to set contribution rates in unfunded public service pension schemes. This is in line with a commitment made in the Spending Review, and follows a recommendation of the Independent Public Service Pensions Commission’s interim report.
Initial work carried out by the Independent Public Service Pensions Commission suggests that the current discount rate is at the high end of what is appropriate. The Commission asked the Government to review this discount rate, so that the findings can inform the final report. More information on the Independent Commission, including the interim report, can be found on the HM Treasury website: http://www.hm-treasury.gov.uk/indreview_johnhutton_pensions.htm