2025 Actuarial Valuations – Board Summary published

The Board has today published a report that summarises the results of the recently completed local fund valuation exercise. The report is based on data collected from 86 of the 87 LGPS funds in England and Wales (only the closed Environment Agency Fund has been excluded). It compares the 2025 valuation results to the 2022 valuation results as well as looking at the assumptions used, the investment strategies and the gender pensions gap. The report was kindly prepared for the committee on a “no fee” basis by Barnett Waddingham.

There has been an unprecedented level of interest in the outcome of this valuation round – in the press, in Parliament and beyond. This is partly driven by expectations raised by the welcome further increase in funding levels. These improved from 107% in 2022 to 122% in 2025 (using local funding bases). The interest was also driven by ongoing concerns about the amount of funding available to deliver local public services, including education.

The Board therefore welcomes the decisions made locally to share the benefits arising from the successful management of LGPS funds, and in particular the decrease in average employer contributions from 21.1% of payroll in 2022 to 16.5% of payroll in 2025.

That we are able to offer such welcome reductions in contribution is evidence that LGPS remains a cost effective and well managed scheme that delivers real value for its members and participating employers. In considering the level of reductions possible, funds have had to balance the interests of employers today with their need to protect future members from the uncertain economic and geopolitical times in which we live and no doubt lie ahead.

The Board is also committed to “telling our story” better and is looking at ways in which we can improve the knowledge base and understanding of the scheme for those participating in the public discourse around the scheme. Publishing this report is one early step in that but we expect to produce more informational material in due course.