HM Treasury announce changes affecting transfer, divorce and retirement calculations
On 19 May 2026, HM Treasury announced changes to the actuarial assumptions used for members of public service pension schemes. This includes the Local Government Pension Scheme (LGPS), which the EAPF is a fund of.
These changes will affect members who want to:
- Retire before or after their Normal Pension Age (NPA)
- Transfer their previous private sector pension rights into their public service pension scheme
- Have a Cash Equivalent Transfer Value (CETV) of their pension rights, to investigate the possibility of transferring their public service pension rights to a non-public service pension scheme
- Have a Cash Equivalent Transfer Value (CETV) of their pension rights for divorce purposes
At the moment, we don’t have confirmation of when these changes will take effect, or whether any transitional arrangements will apply to members retiring around the implementation date; however, as a precaution (and at the Local Government Association’s recommendation), we’ve taken the following actions:
- Placed a ‘hold’ on cases for members wishing to transfer previous private sector pension rights into the EAPF
- Placed a ‘hold’ on cases for members wishing to have a CETV of their pension rights
- Inserted a paragraph in all retirement option/quotation letters, to ensure members are made aware that the early/late retirement reduction factors used in the calculations will soon be changing
- Placed a warning message on the Retirement Illustrator page in the EAPF Online portal, to ensure members are made aware that the early/late retirement reduction factors used in the calculations will soon be changing
Once we know more about the situation, we’ll keep you updated through our website’s News section.