Ministry of Defence: Workplace Pensions

Ministry of Defence written question – answered am ar 2 Awst 2023.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Lord de Mauley Lord de Mauley Ceidwadwyr

To ask His Majesty's Government what assessment they have made of the potential for recent increases in interest rates to provide them with an opportunity to address the Ministry of Defence’s historical pension liability.

Photo of Baroness Goldie Baroness Goldie Lord in Waiting (HM Household) (Whip), The Minister of State, Ministry of Defence

The Armed Forces Pension Scheme (APFS) is, like the majority of public service pension schemes, an unfunded scheme. As with all unfunded pension schemes, they are paid for only by the taxpayer and have no cash or investments to fund pensions in payment or past liabilities. As such, increases in interest rates will not reduce the Ministry of Defence (MOD)'s historical pension liability for the AFPS, which is driven by the SCAPE (Superannuation Contributions Adjusted for Past Experience) discount rate and other assumptions set by His Majesty's Treasury and MOD.

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