04 April 2025
5 min
It feels like a waiting game now in the LGPS. A raft of consultations is due, on stage 1 of the Pensions Review and as MHCLG tackles its backlog. You might like to use the current ‘spare time (!)’ to focus on your 2025 valuation and consider how to manage various risks. And help is at hand to get your fund fully compliant with the McCloud remedy.
Another lively and popular LGC Investment Seminar was held in Cheshire last week, as LGPS stakeholders met to discuss a host of topical issues. You can catch up on the highlights here. As we enter the 2025 valuation year, our own Rob Bilton had a sneak peek at the challenges of managing the upsides and the downsides. Funding positions will be higher, but regret may be felt later if employer contribution rates are lowered too quickly. The prudence margin will be a key lever for funds to agree.
Despite some ‘pre-match’ speculation, the Chancellor’s statement on 26 March was a damp squib from a LGPS perspective. There was just a passing mention about pension reform. The response from the Pensions Minister to a Parliamentary question on 25 March said that the Government’s response to the ‘Fit for the future’ consultation would be provided in Spring 2025, with the second phase of the pensions review (covering adequacy of benefits) following ‘in due course’.
From 2 April 2025, new Scottish amendment regulations mean that Scottish LGPS funds must now exercise their discretion to determine the amount of exit credit due to be paid to any employers that leave with a surplus. The new regulations are almost a mirror image of those that have been in place in England and Wales since 2020. This 60-second summary tells you everything you need to know about these new regulations and suggests some next steps. Please speak to your fund actuary if you need any implementation support.
If you have any questions, or would like to discuss anything further, please get in touch.
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