Pensions - Articles - Early insights into 2022 LGPS valuation results


Funding level increases expected to be between 7-12%. Investment returns rise to offset inflation expectations.

 LGPS funds should expect to see positive improvements in funding level at the 2022 valuation, reveals Hymans Robertson, as it publishes analysis to help LGPS funds better understand their 2022 valuation results. Following a review of whole fund results, the analysis from the leading pensions and financial services consultancy, outlines the common trends which are emerging, while considering the current economic challenges in relation to inflation.

 Commenting on the release of the analysis, Robert Bilton, Head of LGPS Valuations at Hymans Robertson, said: The 2022 LGPS valuations take place against a background of rising inflation, post Covid and a cost-of-living crisis – a starkly different environment from the previous valuation. However, the big finding to date is a continuation of the recent improvement in past service funding levels, and our early research indicates this to be between 7-12%.

 “Our analysis indicates that strong three-year investment returns of 27-28% have been the driver behind the improvement, more than offsetting higher future inflation expectations. Other factors such as salary increase and life expectancy post-Covid have had minimal impact on the funding position. For funds, we would urge cautious optimism as experience tells us that the funding position does not directly drive employer contribution rates – these will start to be reported in the next few weeks.”

 A copy of Hymans Robertson’s analysis can be accessed here providing more details.
  

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.