LGPS 2025 Valuations outcomes and performance

Commenting on the release of, 2025 Valuations outcome briefing note and what it says about the performance of the LGPS, Rob Bilton, Head of LGPS Actuarial, Hymans Robertson, says:

“The 2025 valuations in England & Wales, mark another significant milestone for the LGPS and shows a scheme that has performed well, through a period of exceptional economic uncertainty. The early evidence set out in our briefing highlights many positives; from reduction in employer contribution rates to strong stakeholder engagement across the scheme, and decisions that reflect long term thinking, rather than short termism. 

“Whilst in absolute terms the LGPS holds more assets than ever before, the amount of assets per £ of benefit owed to members has fallen between the 2022 and 2025 valuations. However, the LGPS has acknowledged higher future investment return expectations at 2025 and struck a balance between affordability now, and stability in the future. 

“A recent survey of local authorities participating in the LGPS revealed that engagement between funds and employers has been extensive. 89% of respondents say there was opportunity to engage with the LGPS fund to discuss, understand and ask questions about the contribution rate decision-making process. Nearly all of the authorities (96%) also say that they’re comfortable with their 2025 valuation contribution rate, which is expected to fall by, on average for the whole scheme, around 4-5% of pay.

“Our briefing note covers the key themes of the 2025 LGPS valuations in England & Wales, and it points to a scheme doing its job well – delivering adequate and fair benefits for 7 million members in the UK with high levels of engagement, and affordability, for its 20,000+ participating employers.

“As the results fully emerge across the entire scheme, we’ll fully explore the underlying drivers for the outcomes including variations between the priorities of funds and employers, and the stress testing undertaken to ensure results remain robust over the long term.”

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