The Local Government Pension Scheme (LGPS) has to carry out a valuation (health check) of its Funds every three years. The purpose of the valuation is to monitor the funding level of the Fund and individual employers against the current value of their pension liabilities and to set employer contribution rates for the following three years. The last valuation took place in 2013 and the final report for both funds can be found on our Governance pages.
The next valuation will be carried out during 2016. Below is a timetable of events for the valuation:
- April 2016: Employer Forum
- April 2016: End of year return to be completed by scheme employers
- June 2016: LGSS Pensions Service provides valuation data to Funds actuary
- October 2016: Scheme employers are consulted on the Fund’s Funding Strategy Statement
- November 2016: Draft valuation results issued to scheme employers
- March 2017: Final valuation results issued to scheme employers
The quality of the data we hold about your members is crucial to the results of the valuation. If the details we hold for your members is incorrect, you could be required to pay more contributions than you need to or you could have a higher deficit at the next valuation than otherwise would have existed. If you have not already done so, it is important that you respond to the data reconciliation exercise we ran in February to ensure the data we already hold is correct.
It is also extremely important that we receive your year end submission by the 30 April deadline and that you respond to any queries we send you as soon as possible. If we do not receive your return on time and this results in the Fund incurring additional actuarial charges, the Fund reserves the right to recover this from you. Discussion with our Scheme Actuary has identified that late submissions would incur a charge of approximately £5,000 per late employer.
Throughout the year we will be providing updates and information, to employers, so it is vital that the contacts we hold for you are up to date. If any of your named contacts changes please let us know.
If you have any questions concerning the valuation please email Penemployers@northamptonshire.gov.uk.