Planning for the 2022 LGPS Valuation
The latest Local Government Pension Scheme (LGPS) valuation date was on 31 March 2022 and the process which defines the outcome will conclude exactly one year later on 31 March 2023. Revised employer contribution rates will also then come into effect from this date.
Funds and their actuaries are already making their plans. To help ensure that the process is effective and that all stakeholders get the best outcome, Isio and CIPFA will be issuing a series of four bulletins together over the next eight months.
Each part of the series will cover the following key talking points for consideration during the 2022 valuation year in chronological order:
1. What is the valuation process? (Bulletin 1)
2. Funding snapshot - March 2022 (Bulletin 2)
3. Proactive engagement between employers and the Fund
4. First look valuation results
The LGPS valuation process is now well and truly underway. In our second bulletin, we cover the funding position at the valuation date and the impact of market conditions on the new cost of providing future benefits, whether the past service position has improved given good investment returns and highlight the many specific factors that will impact contribution rates.
Our main message continues to be to engage early in the process to make sure that the outcomes best meet the objectives of all stakeholders.