Originally posted by @KRG
The govt lowered its assumed discount rate for future pension liabilities.
_ 2.13 Public service pensions SCAPE discount rate – The government has reviewed the discount rate used to set employer contributions to the unfunded public service pension schemes. The discount rate is being set at 2.8% and employers will pay higher contributions to the schemes from 2019-20 as a result._
The “employers” here are the divisions of govt, public sector, that employ doctors, nurses, soldiers etc. In practice, the money is now going to have to come from individual departments budgets - which means there is less money for hiring new nurses or doctors, equipment etc.
Thanks