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<p>A number of factors determine the cost of providing pensions, most significantly
by the Superannuation Contributions Adjusted for Past Experience (SCAPE) rate. The
SCAPE discount rate is the central measure of the affordability of public service
pension schemes; it is based on the Office for Budget Responsibility (OBR) forecasts
for long-term Growth Domestic Product growth. In light of the material change to the
OBR forecast compared to the forecast at Budget 2016, and based on the methodology
for setting the SCAPE rate as agreed in 2011, <br> HM Treasury took the decision to
set the SCAPE discount rate at 2.4% plus Consumer Price Index from 1 April 2019. This
reduction in the SCAPE rate has resulted in an increase to employer contributions
in the Teachers Pension Scheme of 7.2 percentage points.[1]</p><p> </p><p>[1] based
on an implementation date of 1 September 2019.</p>
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