Every three years, a formal valuation of the LPFA pension fund is carried out under Regulation 62 (1) of the LGPS Regulations 2013.
The LPFA’s policy for carrying out this triennial valuation is set out in our Funding Strategy Statement. The most recent valuation report for the Fund is available here.
The valuation process is set out below:
- The LPFA provides finance and membership data to the Fund Actuary, Barnett Waddingham. The Actuary then uses this data to carry out the valuation.
- This data is used to estimate the future benefit payments from the Fund and the total value of those payments. The valuation assumptions are set to be consistent with our Funding Strategy Statement and are related to each employer’s covenant strength.
- The contribution rate for each employer is calculated allowing for its funding level and membership profile. Revised employer contribution rates come into force one year after the effective date of the valuation. Employers can pay a higher contribution rate than required if they wish or make one-off payments at any point in time. These payments would be invested in the same way as other pension contributions and could reduce the level of contributions required at future valuations.
Please contact us if you would like to discuss the valuation process or your employer contribution rate, or if you are considering making an additional payment to the Fund.