The valuation process for Local Government Pension Scheme (LGPS) Funds is now underway and while the information for the valuation is not yet available, we can provide some indications of the methods we will be proposing and the direction in which we anticipate the results will go.
The revision to the Code brings a new emphasis to our responsibility as qualified or student actuaries to speak up if we believe that a course of action in unethical or unlawful.
We are largely supportive of most of what is being proposed in the consultation, but will still have a lot to say; the devil is in the detail and, as ever, we also need to think through any unintended consequences.
Pensions are supposed to be boring – public sector pensions even more so. Actuaries are only supposed to get excited very occasionally and when they do, it’s often hard to tell that they are excited.
The LGPS Online Data Checker provides an online, secure area for LGPS Funds to carry out valuation data checks at whole Fund and individual employer level.
The assumptions that need to be made as part of the Local Government Pension Scheme (LGPS) valuation process are varied and many. For example, what investment returns will the Fund achieve in future? What are members going to be earning? How long will they live?
One of Lord Hutton’s key recommendations was that retaining defined benefit schemes in the public sector should come with the condition that there is a “cost cap” mechanism. This seemed like a good idea at the time but like many things in life is easier to say than actually do.
Most LGPS benefits build up gradually during each member’s employment. However, if a member retires early as a result of ill-health, it might not just be the member that is laid low; the employer’s funding position may also be feeling down.
2018 was another eventful year for pensions. In the LGPS we saw three new sets of regulations passed introducing exit credits, equalisation of survivor benefits and new powers for MHCLG to issue statutory guidance.
As technology continues to change the way we live and work, a core element of our service offerings is online access via the internet. BWebstream is our secure, easy to use, fully-integrated online platform for pension schemes, giving exceptional control over administration. Lisa Hodge from the Public Sector Consulting team tells us how the team has been using the tool.