LGPS 2025 valuations: The Big Picture

The 2025 actuarial valuations show the LGPS in England and Wales to be in a strong financial position, and have attracted more attention than any other in recent memory.

With the valuations now concluded, we have analysed the outcomes to understand the big picture and what the key themes mean about the current funding position of the LGPS.

Key takeaways:

• Funds have taken a measured approach to contribution reductions, recognising that funding improvements are driven largely by higher expected future returns that are not guaranteed
• The valuation results show greater variability in outcomes between LGPS funds, driven by differences in investment performance, assumed future investment returns and local funding strategies. This variation reflects the LGPS’s local accountability framework and strong independent thinking, with funds adopting different funding paces and attitudes to risk in response to their own circumstances
• Through the regulatory lens of solvency and long-term cost efficiency, today’s employers are benefiting from lower contributions, members and taxpayers have a scheme that is solvent and there has been no material transfer of cost to future generations

Overall, the 2025 valuations highlight the ongoing success of the LGPS continuing to balance affordability, solvency and long-term sustainability for its members and participating employers.

Download our full report here