Every three years, a formal valuation of the LPFA pension fund is carried out under Regulation 62 (1) of the LGPS Regulations 2013. The valuation is a statutory requirement that is held for all of the Funds in the Local Government Pension Scheme. Our independent Actuary values the assets and liabilities in the Fund and sets the level of employer contributions for the next three years. More information can be found below.
ABOUT THE 2022 VALUATION
The valuation process helps maintain the pension fund’s financial health ensuring that the LPFA can deliver this valuable and appreciated part of the employee reward package. The valuation assesses the funding level for each employer and the contributions that each organisation will make over the next three years. The most recent valuation for the Fund is available in the accordion below.
The high-level valuation process is:
- 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.
More information can be found in the brochure in the 2022 Valuation Timeline accordion below.
THE 2022 VALUATION TIMELINE
Our valuation brochure summarises the valuation process and highlights the main milestones involved.
ABOUT THE 2019 VALUATION