This is a technical note on the discount rates to be used by the scheme managers of public service pension schemes in calculating transfers payable from the schemes.
Deferred members of pension schemes may choose to transfer their pension benefits to appropriate alternative pension schemes in some circumstances.
Transfer values are also used in assessing the pension component of assets of a marriage or civil partnership during divorce or dissolution proceedings. This guidance updates the discount rates that are used in the calculations, bringing them into line with a change made at Budget 2016 to update the discount rate used in undertaking valuations of the pension schemes as a whole.
The guidance applies to the unfunded public service pension schemes and the local government pension schemes in England, Wales, Scotland and Northern Ireland and the schemes should adopt the updated discount rates with immediate effect..