Public service pensions: completion of 2016 valuations
This is a technical note on actuarial valuations of the public service pension schemes.
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The Public Service Pensions Act 2013 provides the legal framework for actuarial valuations of the public service defined benefit pension schemes. The Act provides for the establishment of a cost control mechanism to assess the costs of schemes and ensure they remain sustainable for the taxpayer.
In February 2019 the Treasury published amending Directions to pause the cost cap element of the valuations due to uncertainty regarding the cost of schemes following the McCloud and Sargeant litigation. As there is now sufficient certainty, these Amending Directions allow schemes to conclude their valuations by setting out how schemes must carry out the cost control element of those valuations. The Treasury have a statutory duty to consult the Government Actuary before making these Amending Directions. The Treasury completed this statutory consultation in October 2021.