Update on HM Treasury 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, and meant that the factors used for a range of pension calculations in the LGPS have recently changed.
These changes affect members who wish to:
- Retire before or after their Normal Pension Age (NPA)
- Transfer their previous private sector pension rights into their public service pension scheme (applies to contributing members of the 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
The Government Actuary’s Department (GAD) who are responsible for producing the new factors, has now issued the new calculation factors for use by all LGPS funds, and these are currently being implemented for our members.
There was a short transition period while the new factors were being introduced. During this period, any members directly affected by the changes were contacted individually.
Any new retirement quotations, transfer value calculations and other calculations affected by the changes will now reflect the latest factors.
Members who are currently paying Additional Regular Contributions (ARCs) or Additional Pension Contributions (APCs) through regular monthly contributions should be aware that these arrangements may also be affected.
Where an existing ARC or APC contract continues beyond 31 March 2027, contribution rates will be reviewed and recalculated from 1 April 2027 using the new factors where required. We will contact any affected members nearer the time to explain the changes and any impact on their contribution arrangements.