Pensions - Articles - LGPS pension funding now at 146 percent

 The FRS 102 survey, carried out annually since 2020, is now the biggest Defined Benefit (DB) pension survey of the UK social housing sector. Over time, the surveys show a dramatic increase in LGPS funding, from 83% in 2020 to 146% in 2025.

 Dale Walmsley, Partner at First Actuarial, says: “The standout funding growth seen in the LGPS contrasts with more static positions of other housing pension schemes. A big reason for this is the investment of LGPS funds in return-seeking assets. LGPS is open to new entrants, whereas other schemes such as SHPS have ageing memberships. This opens up a longer-term and less cautious approach to investment for LGPS.”

 Now in its sixth year, the FRS 102 survey has become a valuable source of long-range trends across housing pension schemes. It gives housing associations valuable data for benchmarking pension provision. And housing associations can also use it to help manage compliance with the Regulator of Social Housing.

 Dale Walmsley says: “The FRS 102 survey is part of the support we give to housing associations with DB pension provision. Our housing team also helps evaluate and support Defined Contribution providers, and provides expert guidance to housing associations that want to bulk-transfer out of a multi-employer scheme. We move with the times as trends in pension provision shift and the needs of housing employers change with them.”