Maximising an LGPS valuation surplus

Background

Our client, a University, was in a significant surplus at the 2022 valuation. However, they were only looking to achieve a relatively small reduction in contributions, without effective engagement with the Fund.

Our approach

To address this challenge, we adopted a collaborative approach supported by strong actuarial analysis and broad LGPS insight:

• Collaborative approach: We provided the Fund with alternative mechanisms to consider in order to get comfortable in that reducing contributions further.

• Actuarial and LGPS insight: Each of these options was supported by robust actuarial analysis and insights on the approach taken by other LGPS Funds.

• Effective engagement: We helped the University to effectively articulate their strong business case for greater contribution reductions

• Rapid support: Our experience enabled our client to engage quickly with the LGPS Fund, allowing time for meaningful and impactful discussions, ahead of tight timescales.

Impact

Our client successfully achieved a further (and material) reduction in contributions.

Our collaborative approach, drawing on our actuarial and LGPS knowledge and experience, helped our client achieve a further material reduction in contributions.