LGPS 2023 valuations: the big picture in Scotland

With the 2023 valuations in the LGPS in Scotland now concluded; we have analysed results for all 11 regional funds to understand the national picture. And the results are very positive:

• The past service funding level is strong – an increase in the overall funding level from 104% at 31 March 2020 to 141% at 31 March 2023.
• Administering authorities have, on average, been able to offer some contribution rate relief. The average total employer contribution rate across the 11 funds has reduced from 20.3% of pay in 2023/24 to 17.5% in 2026/27.
• The outlook for the long-term sustainability of the scheme is robust. In aggregate, current LGPS funding plans have a more than 85% likelihood of being sustainable over the long-term.

This means that the LGPS in Scotland is in a very strong and enviable position, not just within the public sector pension scheme environment, but also when compared against other open, long-term defined benefit pension schemes.

Download our full report where we examine the overall picture for the LGPS in Scotland and gain some insights into the funding plans that have been adopted.

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If you have any questions, or would like to discuss anything further, please get in touch.