Firefighters’ Pension Update – Bulletin 28

Impact on pensions following change to SCAPE Discount Rate

On 19 May 2026, the Government announced an increase to the Superannuation Contributions Adjusted for Past Experience (SCAPE) Discount Rate from the Consumer Price Index (CPI) plus 1.7% to CPI plus 2%, meaning a review of actuarial factors used in public sector pension schemes in a variety of calculations.

The Government Actuary’s Department (GAD) is responsible for producing new factors.  GAD is in the process of issuing these out in batches, therefore, we are not in receipt of all factors yet.

NIFRS is not involved in setting the SCAPE Discount Rate for the production of actuarial factors.  HM Treasury are responsible for determining the SCAPE Discount Rate and GAD are required to apply the prescribed SCAPE Discount Rate when producing the relevant factors for the public sector pension schemes.

Factors we have received:

Commutation factors in Firefighters’ Pension Scheme (NI) 2007 (FPS (NI) 2007)

Revised commutation factors for the FPS (NI) 2007 have taken affect on 21 May 2026.  The Standard NFPS (NI) 2007, Special NFPS (NI) 2007 (Modified Scheme) and the Firefighters’ Pension Scheme (NI) 2015 (CARE Scheme) commutation factors are not affected.

The commutation factors have been reduced, meaning members electing to take lump sum under FPS (NI) 2007 are expected to receive around 5% less than under the previous commutation factors.  Other pension calculations may also be affected pending further guidance from GAD.

Our administrator, HSC Pension Service have provided further detail on what actions they are taking as a result of the factor review under hyperlink SCAPE Discount Rate changes FPS | HSC Pension Service.

The hyperlink contains additional information for those members due to retire in the forthcoming months, further detail on what other calculations are impacted and may be held until revised factors are received from GAD.