The Government Actuary has completed a consultation with HM Treasury on the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2023. These set out how the 2020 valuations should be undertaken for the public service pension schemes.
The 2020 valuations will inform the future contribution rates to be paid into the schemes by employers from 1 April 2024. It will also be the first time that the reformed Cost Control Mechanism is tested.
The new Directions will also ensure that the 2020 valuations of the public service pension schemes can be completed using updated assumptions.
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Consultation on Directions
There is a statutory duty for the Government Actuary to be consulted on the Directions. This consultation was completed in August 2023.
In his response to HM Treasury Martin Clarke said the draft 2023 Directions: "… will deliver results for the 2020 valuations which largely meet the stated objectives, with some better met than others, and that they are, in the round, technically complete and coherent."
Next steps
Now the Directions have been published, GAD will begin finalising valuation results and reports for the public service pension schemes over the next few months.
