Appendix B2 – financial and demographic assumptions
To assess the liability value of the benefits, we have used the following assumptions as at 31 March 2026 (the 31 March 2025 assumptions are included for comparison):
31 March 2025 31 March 2026
Rate of return on investments (discount rate) 5.80% per annum 6.20% per annum
Rate of CPI Inflation / CARE benefit revaluation 2.60% per annum 2.90% per annum
Rate of pay increases 3.85% per annum 4.15% per annum
Increases on pensions (in excess of GMP) / Deferred revaluation 2.70% per annum 3.00% per annum
Post retirement mortality (normal health)
| 31 March 2025 (M/F) | 31 March 2026 (M/F) |
|---|
| Base mortality table | SAPS 4 / SAPS 4 middle | SAPS 4 / SAPS 4 middle |
|---|
| Future improvements | CMI 23 1.5% | CMI 24 1.5% |
|---|
| Other choices | S=7, A=0
W20=W21=0%,
W22=W23=15% | Core
Underlying |
|---|
| Non-retired members (currently age 45): | | |
|---|
| Weightings | 103% / 97% | 110% / 100% |
|---|
| Life expectancies at age 65 | 22.9 / 25.7 | 22.7 / 25.6 |
|---|
| | |
| Retired members (current age 65): | | |
|---|
| Weightings | 99% / 95% | 101% / 95% |
|---|
| Life expectancies at age 65 | 21.6 / 24.1 | 21.7 / 24.2 |
|---|
The start of period assumption is set based on the most recent mortality analysis as at the previous accounting date (so from the 2022 actuarial valuation), but with: