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 will be carried out by an actuary appointed by the Administering Authority of the pension fund. 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 will look at the assets held and the liabilities for all the individual members, and will make 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.
Employers will be engaging with the 2022 valuation and can find more information in the 'Next Steps for Employers' section.