Triennial Actuarial Valuation

The Scheme Advisory Board has published its detailed report of the 2022 triennial valuation process.

The Scheme Advisory Board has published an overview of the triennial valuation and a detailed report on the results for 2016.

The dedicated Board web page for valuations in the LGPS, including links to the 2016 fund valuation reports can be found here.

The Cost Management and Contributions committee of the Board developed a set of standard assumptions.

GAD's Section 13 dry run report refers to these assumptions at 4.12, recommending that the SAB standard basis funding ratio is published in valuation reports (due Q2 2017) to allow more consistent like for like comparisons.  A description of the bases and how each differs from local fund valuations is given in section D of the Appendices

In the meantime, the Board secretariat will publish standard valuation results for funds on an anonymised basis below:

The Government Actuary's Department (GAD) have completed a “dry run” section 13 analysis based on the 2013 local valuations. This analysis assesses whether the four main aims; compliance, consistency, solvency and long term cost effectiveness; have been achieved:

GAD Section 13 dry run report pdf 51 pages 1.22MB

GAD Section 13 dry run report Appendices pdf 43 pages 687kb

The Board has now published its report on triennial valuations in the LGPS containing a summary of the 2013 valuations viewed across the LGPS in England and Wales.

The Board has published two versions of its report. A shorter report summarises the key findings of the 2013 valuations and provides some brief background. The more detailed report gives a fuller overview of the 2013 valuations and provides some wider context as to a) how employer contribution rates are calculated during valuations, and b) how individual fund valuations relate to the Board cost management process which will first be undertaken in 2016. These reports are available as formatted webpages via the following links:

2013 valuations - In detail Also available as a standalone PDF here.

2013 valuations - A summary Also available as a standalone PDF here.

The 2010 and 2013 valuation reports of individual LGPS funds in England & Wales have also now been published on this website by the shadow Scheme Advisory Board. This is the first time individual fund reports have been made available via a publicly accessible central resource. The 2010 and 2013 reports for the majority of funds are available via the following links:

2010 fund valuation reports

2013 fund valuation reports

The Shadow Scheme Advisory Board (‘the Board’) has today published its findings from the 2013 valuations undertaken over the last year in Local Government Pension Scheme (LGPS) funds in England & Wales.

Viewed on a national basis, these local fund valuations show the LGPS in England & Wales had a funding level of 79% as at 31st March 2013, an equivalent funding level as calculated during the previous valuation process in 2010. Taken together with the recently implemented LGPS 2014 pension reforms which will aid the long term affordability and sustainability of the pension scheme, the results of the 2013 valuations demonstrate the positive long term prospects for the health of the LGPS.

As a funded Scheme, the LGPS invests its assets to give a long term resource for paying pensions. The 2013 valuations show that as at 31st March 2013, across the LGPS in England and Wales, the LGPS held £180.50billion in assets. In addition, the LGPS continues to have a positive net cashflow, with more money being paid in to the Scheme as contributions than is being paid out in pensions.

However, the Board recognise that there is work to be done to ensure that the Scheme’s finances are improving and, in particular, that the Scheme is addressing the long term structural deficits that exist in some funds. To that end, work has already commenced on reviewing options for deficit management in the LGPS, and will continue in the second half of this year with a view to making recommendations to the Secretary of State for the better management of fund deficits.

The Board has published two versions of its report. A summary version outlines the key findings of the 2013 valuations and provides some brief background. A more detailed version gives a fuller overview of the 2013 valuations and provides some wider context as to a) how employer contribution rates are calculated during valuations, and b) how individual fund valuations relate to the Board cost management process which will first be undertaken in 2016. The dedicated Board web page for valuations in the LGPS, including links to the majority of the 2010 and 2013 fund valuation reports can be found here.

Both papers are also available in PDF format, the summary version here and the more detailed overview here.