LGPS 2025 valuations: a strong outcome in a complex environment - briefing note

The publication of the 2025 Local Government Pension Scheme (LGPS) valuations in England and Wales marks another significant milestone for the scheme ‒ and one that deserves to be understood in its proper context.

Recent commentary has focused heavily on the headline size of LGPS assets and the idea that the scheme is sitting on large, easily distributable surpluses. While eye‑catching, this narrative risks missing the reality of what the valuations actually show.

The 2025 valuations demonstrate a scheme that has performed well through a period of exceptional economic uncertainty, delivering strong outcomes for members and employers alike, while continuing to manage risk responsibly.

In our briefing note, we look beyond the headlines to explain:

• why large asset values do not automatically translate into excess surplus
• what is driving funding improvements at the 2025 valuation
• how contribution rate decisions reflect a careful balance between affordability today and stability over the long term
• why variation between funds and employers is a strength, not a weakness

We also share insights from local government employers on engagement, transparency and confidence in the outcomes they have received.

Download the briefing note by clicking the button below to read the full analysis and understand what the 2025 LGPS valuations mean in practice.

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