Report on results of comparative pension valuation of pension benefits for illustrative individuals & Report on methodology and assumptions
This work was commissioned to provide information about the value to illustrative individuals of the pension benefits provided by current public sector pension schemes and by their successor schemes from April 2015. This is intended to provide context for the Pay Review Bodies’ deliberations. The detailed results should not be regarded as providing a comprehensive assessment of the changing value of pensions but, rather, as indicative of the impact of changes on illustrative career paths. The work described in this report was carried out under contract as part of OME’s research programme. The views and judgements expressed in this report are therefore those of the contractor and do not necessarily reflect those of OME.
These report versions replace those originally published on this website on 4 November 2014. This is because Towers Watson discovered that their valuation methodology had not correctly reflected transition arrangements from the two-speed accrual in the 1987 Police Pension Scheme to single accrual in the new Police Pension Scheme. The current age assumed for career path C3 has also been changed from 50 to 35 to ensure transitional arrangements would not apply. The previous report had overstated the impact of the change from 2013 to 2016 benefits for police career paths C2 and C3. This does not affect any of the key messages or conclusions.