2025 Valuations
Executive Summary
Funding level
Improved from 107% at 2022 to 122% at 2025 (on local funding bases) with all but six Funds reporting an improvement
Surplus
Improved from a surplus of £22.1bn at 2022 to a surplus of £72.9bn at 2025 (on local funding bases)
Membership
Total count of members increased from 6.6m at 2022 to 7.2m at 2025
Average primary rates
Decreased from 19.8% of payroll p.a. at 2022 to 17.7% of payroll p.a. at 2025 (at whole fund level)
Average total contribution rates
Decreased from 21.1% of payroll p.a. at 2022 to 16.5% of payroll p.a. at 2025 (on an equivalent whole fund level)
Allowance for McCloud
An average gap of 30% for CARE pension, 40% for final salary pension, and 34% for total pension at 2025
The majority of LGPS funds saw an improvement in funding position, largely driven by an increase in the discount rates used at the 2025 valuation, and secondary contributions paid by employers over the intervaluation period. As at 31 March 2025, the total funding level across the 86 funds analysed was 122% which corresponded to a surplus of £72.9bn. Average total contribution rates decreased from 21.1% p.a. to 16.5% p.a., with primary rates also decreasing. Due to the improved position of most funds, secondary contributions were generally reduced, with many being negative. We continue to see participating employers under cost pressures so this easing of rates was welcomed.
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Employer Engagement
As a result of the updated FSS guidance published in January 2025, there was an increased focus on employer engagement as part of the 2025 valuation. There is a separate piece of work being carried out by the SAB to review the updated FSSs following completion of the 2025 valuation.
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