The Public Service Pensions Act 2013 provides the legal framework for actuarial valuations of public service pension schemes to measure the costs of the benefits being provided. These valuations will inform the future contribution rates to be paid into the schemes by employers from 1 April 2019. The act also provides for the establishment of an employer cost cap mechanism to ensure that the costs of the pension schemes remain sustainable in future.
Directions and regulations made under the Public Service Pensions Act 2013 implement this policy; updates to the directions are required at each valuation. The Chief Secretary has written to the TUC to seek their views on Treasury proposals to amend the existing Treasury valuation directions. The letter to the TUC, plus the draft directions and technical annex are published on this page. The draft amending directions should be read in conjunction with The Public Service Pensions (Valuation and Employer Cost Cap) Directions 2014. The draft directions will enable departments to proceed with public service pension scheme valuations, and to undertake next steps with their stakeholders. The Treasury has a statutory duty to consult the Government Actuary before finalising the directions, this will happen later in 2018 following receipt of comments from the TUC and other stakeholders.