LGPS in ‘strong financial position’

28 Sep 18

The Local Government Pension Scheme is in a “strong financial position”, the government’s first statutory review of it has revealed.

Total assets for the LGPS grew from £180bn in March 2013 to a market value of £217bn in 2016, the Ministry of Housing, Communities and Local Government said yesterday. 

The department appointed the Government Actuary (GA) to conduct a review of 91 individual funds that make up the LGPS and assess them in terms its compliance, consistency, solvency and long term cost efficiency.

LGPS is in “a strong financial position and funds have made significant progress since the 2013 valuation based on the criteria,” the GA reported.

Aggregate funding level has improved from 79% to 85%, due in part to better than expected returns on assets and strong returns have continued, according to the review.

Total employer contributions received were £6.9bn per annum on average, of which about £2bn per annum were deficit recovery payments.

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