The Fund’s actuary Hymans Robertson LLPcarries out a valuation of the Fund every 3 years in line with Local Government Pension Scheme (LGPS) regulations.
The valuation exercise
The purpose of the valuation is to review the financial position of the Fund and to set employer contribution rates and is effectively the Fund’s triennial budgeting exercise.
The actuary estimates the amount of assets that will be required to meet the benefit payments owed to members as they fall due. Separate calculations are carried out to identify the expected cost of members’ benefits in respect of scheme membership completed before the valuation date (past service) and that which is expected to be completed after the valuation date (future service).
A funding ratio is calculated by the actuary which compares the value of the assets and the past service liabilities at the date of the valuation. This ratio provides a check against the aim of meeting the longer-term funding level target.
The valuation exercise is complex. The actuary needs to make assumptions about future:
- rates of inflation
- salary increases
- investment returns
Actuarial report and certificate
Actuarial reports, including the rates and adjustments certificates that set out employer contribution rates, must be obtained before the first anniversary of the valuation date.
The latest valuation report, including the rates and adjustments certificate, is attached to this page.
Actuary valuation videos
Our actuary has created some videos to help our employers understand how the contribution rates are calculated and what the valuation results mean.
How are your contributions set?
Employers who provide LGPS access to their employees pay contributions to the Fund. These contributions ensure the costs of employee benefits are covered. This short video explains how the actuary works out our employer contribution rates.
Go to the ‘How are your contributions set’ video
LGPS 2022 valuations – employer results
This video is to help our LGPS employers understand the valuation results, including:
- The valuation timeline
- Contribution rate tables
- Funding positions (surplus and deficit)
- A review of the Funding Strategy Statement
- What happens next
Go to the ‘LGPS 2022 valuations – employer results’ video
Employer seminar video
This is the online meeting we hosted for our employers on 15 December 2022. It includes a presentation by our actuary.
Links to useful documents