This note is provided for Scottish Public Pensions Agency (SPPA) in their role, acting on behalf of Scottish Ministers, as scheme manager of the Firefighters' Pension Schemes in Scotland. This note relates to commutation of small pensions in accordance with the 2015 Scheme Regulations. It sets out the general method for calculating the cash value for the purpose of commutation of small pensions.

Scottish Ministers, as responsible authority under the Public Service Pensions Act 2013 (the responsible authority) are required under the Firefighters' Pension Scheme (Scotland) Regulations 2015 (the 2015 Scheme Regulations) to issue actuarial guidance on the commutation of small pensions.

This guidance relates only to benefits accrued under the 2015 Scheme Regulations. Some firefighters may also have benefits under the 1992 Scheme or the NFPS which should be dealt with separately according to relevant scheme guidance.

SPPA acting on behalf of Scottish Ministers may commute small pensions under the 2015 Scheme Regulations.

The responsible authority is required to consult the scheme actuary before issuing actuarial guidance under the 2015 Scheme Regulations.

As part of this consultation the responsible authority has asked the Government Actuary's Department (GAD), as scheme actuary, to recommend actuarial guidance in respect of the regulations detailed below. This document forms GAD's recommendation for the actuarial guidance required by these regulations.

The following changes have been made when reviewing this guidance:

• Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
• Calculation methodology: No changes have been made to the calculation methodology.
• Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
• Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
• Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
• Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.