Briefing note: 2026 Scottish LGPS valuations - three things on your surplus bingo card

Every fund is different, and there is no single “correct” approach to funding in a surplus environment. The story for the 2026 Local Government Pension Scheme (LGPS) valuations in Scotland may look simple: strong funding and employer budgetary pressures, leading to contribution reductions. But the reality is more nuanced.

Strong funding creates choices, and choices need governance, evidence and a clear message. Our Briefing note explores three things to look out for on the ‘bingo card’ for the Scottish LGPS 2026 valuations.

• “Strong funding” does not equal “simple answer": Strong funding creates choices, but there is no single "right" approach. Funds will need to balance affordability today with sustainability tomorrow, while considering risk, prudence and intergenerational fairness.
• Good governance will make choices easier to explain: Different funds will make different choices. Clear objectives, robust evidence and a strong governance trail will help explain how affordability, stability and risk have been balanced.
• The message will matter as much as the maths: The 2026 valuations will be a communication exercise as much as a technical one. Funds will need a clear narrative to help employers and stakeholders understand the rationale behind their decisions.

Download the briefing note

To discuss surplus management, governance or stakeholder engagement ahead of the 2026 Scottish LGPS valuations, please get in touch.

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