Actuarial Valuation

Within the Local Government Pension Scheme (LGPS), it is a statutory requirement for a valuation of the pension fund to be carried out every 3 years. This valuation is carried out by an actuary appointed by the Administering Authority of the pension fund, and will determine the employer contribution rates payable.

The key aim of the valuation is to ensure that there are enough assets in the fund to pay all members of the LGPS in that fund the benefits that they become entitled to. The actuary looks at the assets held and the liabilities for all the individual members, and makes assumptions on future investment returns and inflation rates and how long benefits will be paid for. The actuary then decides what level of employer contributions are required so that the fund remains able to pay member benefits into the future.

It is essential that member data is up to date and complete for all Lancashire County Pension Fund (LCPF) employers so that correct data is submitted to the actuary for the valuation assessment. In particular this includes prompt submission of pay and contributions data in the monthly files to our third party administrator, Local Pensions Partnership Administration (LPPA) via their Universal Pensions Management (UPM) system, and the prompt submission of leaver forms so that member records are in the correct membership status.

The next valuation of the pension fund will be as at 31 March 2025, and will determine employer contribution rates from 1 April 2026. The timetable is as follows – 

See previous Actuarial Valuation reports and our Funding Strategy Statement in Publications.

If you have any questions about the valuation process please contact the Employer Risk Team PensionsEmployerRisk@lancashire.gov.uk