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Valuations

The UK Government's Public Service Pensions Act requires that a valuation of the Scottish Teachers' Pension Schemes (STPS) 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 STPS 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 September 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 STPS 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 September 2019 to 31 March 2023 and that rate is 23%. 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 23% 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

Scottish Teachers’ Pension Schemes: Actuarial valuation as at 31 March 2016 Report on membership data

Scottish Teachers' Pension Schemes: Actuarial valuation as at 31 March 2016 Report by the Scheme Actuary

Scottish Teachers’ Pension Schemes: Actuarial valuation as at 31 March 2016 Advice on assumptions   

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:

Scottish Teachers' Superannuation Scheme: Actuarial valuation as at 31st March 2012 Assumptions Advice Report

Scottish Teachers' Superannuation Scheme: Actuarial valuation as at 31st March 2012 Scheme Actuary Report

Scottish Teachers' Superannuation Scheme: Actuarial valuation as at 31st March 2012 Report on data used for experience analysis

Scottish Teacher's Superannuation Scheme: Actuarial valuation as at 31st March 2012 Report on membership data

Scottish Teachers' Superannuation Scheme: Actuarial valuation as at 31st March 2012 Report on methodology


Link to Scottish Government Website