Cost cap valuation of the Firefighters' Pension Schemes (Wales)
The Government Actuary's Department has prepared a cost cap valuation of the Firefighters' Pension Schemes (Wales) as at 31 March 2016.
Documents
Details
The Government established a cost control mechanism for public service pension schemes to ensure a fair balance of risks between scheme members and the taxpayer. The employer cost cap for the Firefighters’ Pension Scheme (Wales) was set at 17.1% of pay, following the 2012 valuation. If at subsequent valuations the cost of the scheme is outside a corridor above / below the employer cost cap, the Public Service Pensions Act 2013 (the 2013 Act) requires action to be taken to bring costs back to the target cost.
The cost of the scheme calculated in this cost cap valuation is 12.9% of pay above the employer cost cap. The result lies above the ±2% corridor: a ‘ceiling breach’. The Public Service Pensions and Judicial Offices Act 2022 provides that ceiling breaches from the 2016 cost cap valuation have no effect.
The cost cap valuation report relies on three earlier reports from the 2016 valuation: