A spotlight on funding risk monitoring

Regular monitoring of funding risk at Fund and employer level is a key part of robust risk management.

The objective of the LGPS is clear: ensure the long-term sustainability for the scheme to keep providing pension benefits to members long into the future.

Meeting this objective means risk management is an essential part of the LGPS and the triennial valuation is just one of the essential risk management tools we all use. If ever we need a reminder of why managing risk, and funding risk in particular, is so important we only need to look at recent market volatility. Funds need to have the information, tools and decision making framework in place to allow them to review and adapt as the environment around them changes.

In this publication, Tom Hoare looks at: 

• Holistic risk management

• Why monitoring funding risk between valuations is important 

• What funding risk monitoring best practice looks like 

• Engaging with stakeholders on funding risk

Webinar on funding risk monitoring

We recently ran a webinar on the importance of funding risk monitoring. This was the first in series of webinars on holistic risk management in the LGPS. Andrew McKerns was joined by Tom Hoare to discuss the above topics in more detail. 

Watch on-demand

If you have any questions on anything covered in this publication, please get in touch.