LGPS: Prudence Watch
In February 2026 we launched our Prudence Watch benchmarking service to help employers and funds assess and compare their new contribution rates.
The 31 March 2025 actuarial valuation of the LGPS (E&W) sets new employer contribution rates that come into force on 1 April 2026, payable for the next 3 years.
There have been significant changes in market conditions since the last valuation in 2022 meaning that this valuation has been carried out in a very different funding landscape. Improved funding positions means most employers are seeing some reductions in the amount they need to pay.
However, with so many different assumptions and stabilisation approaches built into contribution rate calculations, it is very difficult to assess the prudence levels and how they compare. This is the purpose of Prudence Watch.
What is Prudence Watch?
Prudence Watch is a benchmarking and scoring service for LGPS employer contributions. We assess contributions rather than actuarial assumptions to ensure we capture the different approaches contribution setting, including stabilisation.
We apply a standardised approach to calculate a prudence score for each employer contribution rate. This provides transparency and comparability across all employers and their funds, to inform and support decision making, before 1 April 2026 and beyond.
For each employer contribution rate, we consider two things:
- How does it compare to the low-risk contribution rate?
- What level of investment returns does it imply and how does this compare to low-risk long-dated gilt yields?
With these two things we are able to give each contribution a Prudence Watch score.
You can access our initial analysis (date 5 February 2026) below covering the results for 54 employer contribution rates.
We will provide regular updates as our information develops.
February 2026 Results
Take a look at our February 2026 results — including snapshots of the 54 employers featured in the Prudence Watch launch, their contribution rates, and their overall Prudence Watch scores.
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Add your valuation results to our benchmarking and see how your contributions compare.
Prudence Watch score – assessing an employer contribution
Alongside our benchmarking service Isio can provide you with your Prudence Watch score to help you understand your valuation results and make decisions about the next steps. We can provide scores to employers and to funds (in relation your employers).
Your Prudence Watch score can be compared to other employers and/or funds. Isio can help you interpret this reflecting on, for example, your sector, the funds you are in and their actuaries.
Find out more, and discuss how we can help:
Pensions
February 2026 Results
Take a look at our February 2026 results — including snapshots of the 54 employers featured in the Prudence Watch launch, their contribution rates, and their overall Prudence Watch scores.
See the results