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Valuations

The UK Government's Public Service Pensions Act requires that a valuation of the Scottish Firefighters Pension Schemes (SFPS) must be undertaken every four years to measure the costs of benefits being provided. Details of how and when each valuation should be undertaken are set out in HM Treasury Directions and regulations (in particular the Public Service Pension (Valuations and Employer Cost Cap) Directions 2014) (as amended)).

The first valuation of the SFPS under these new arrangements was carried out by the Government Actuary's Department on behalf of the Scottish Government based on scheme data as at 31st March 2012. This set the employer contribution rate for the period 1 April 2015 to 31 March 2019. Details of the 2012 valuation and associated reports are available below. The most recent valuation is based on scheme data as at 31 March 2016.

2016 VALUATION

The latest valuation of the SFPS has recently concluded and was based on scheme data as at March 2016. The valuation has set the rate payable for the scheme for the period 1 April 2019 to 31 March 2023 and the rates payable by Scottish Fire and Rescue Service after deduction of payments made for ill-health retirements are 1992 scheme 39.1%, 2006 scheme 24.5% and 2015 scheme 26.8%. In addition, the valuation also measured the movement in the employer cost cap.

However, the written statement of 30 January 2019 by the Chief Secretary to the Treasury (CST) directed that the employer cost cap rectification of the unfunded public service schemes should pause. The statement also confirmed that the proposed increase in the scheme employer contribution rate to 20.9% should continue given the potential costs that would be faced by schemes resulting from the McCloud/Sargeant Court of Appeal decision on 20 December 2018 (Case number A2/2018/0635). The Court of Appeal found that the transitional protections applied as part of the 2015 reforms discriminated on the grounds of age although the UK Government has sought leave to appeal that decision. The valuation report reflects the CST's written statement.

The report of the 2016 valuation, together with the supporting documentation, is published below:

Firefighters' Pension Schemes (Scotland): Actuarial valuation as at 31 March 2016 Report by the Scheme Actuary

Firefighters' Pension Schemes (Scotland): Actuarial valuation as at 31 March 2016 Report on membership data

Firefighters' Pension Schemes (Scotland): Actuarial valuation as at 31 March 2016 Advice on assumptions

Firefighters' Pension Schemes (Scotland) – Scheme Specific Employer Contribution Rates

Under existing legislation the next valuation will be based on scheme data as at 31st March 2020 and will set the employer contribution rate for the period 1 April 2023 to 31 March 2027

The report of the 2012 valuation, together with the supporting documentation, is published below:

Firefighters' Pension Scheme: Actuarial valuation as at 31st March 2012 Report by the Scheme Actuary

Firefighters' Pension Scheme: Actuarial valuation as at 31st March 2012 Advice on assumptions report

Firefighters' Pension Scheme: Actuarial valuation as at 31st March 2012 Report on data used for experience analysis

Firefighters' Pension Scheme: Actuarial valuation as at 31st March 2012 Report on membership data

Firefighters' Pension Scheme: Actuarial valuation as at 31st March 2012 Report on methodology

Firefighters' Pension Scheme: Assessment of actuarial liability (as at March 2009)

 

Link to Scottish Government Website