Cost cap valuation of the Judicial Pension Schemes
The Government Actuary's Department has prepared a cost cap valuation of the Judicial Pension Schemes as at 31 March 2016.
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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 Judicial Pension Schemes was set at 25.6% of pay, including allowance for the fee paid judiciary. 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 3.9% 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: