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):

Financial assumptions

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 tableSAPS 4 / SAPS 4 middleSAPS 4 / SAPS 4 middle
Future improvementsCMI 23 1.5%CMI 24 1.5%
Other choicesS=7, A=0 W20=W21=0%, W22=W23=15%Core Underlying
Non-retired members (currently age 45):
Weightings103% / 97%110% / 100%
Life expectancies at age 6522.9 / 25.722.7 / 25.6
Retired members (current age 65):
Weightings99% / 95%101% / 95%
Life expectancies at age 6521.6 / 24.121.7 / 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: