How GAD helped increase transparency and oversight of local government workers’ pensions
Report on actuarial valuations of 90+ pension funds.
Analysis from the Government Actuary’s Department (GAD) helped increase transparency and oversight of local government workers’ pensions.
We were commissioned by the Ministry of Housing, Communities and Local Government (MHCLG) to carry out the first formal Section 13 report of the Public Service Pensions Act 2013. We assessed the actuarial valuations of the local government pension scheme (LGPS) funds against 4 criteria:
- compliance
- consistency
- solvency
- long-term cost efficiency
Strengthened funding
Our work considered the result of the 2016 round of 91 LGPS fund valuations in England and Wales. Overall, our analysis concluded the scheme is in a strong financial position. In our detailed Section 13 report we proposed 5 recommendations for further improvements, principally designed to facilitate transparency and better enable comparisons between funds. We recommended building on positive changes already made and enhancing local governance by helping benchmark performance more readily.
Looking ahead
In this review exercise there was close engagement throughout between all the organisations involved including MHCLG, the LGPS Scheme Advisory Board and other stakeholders. This has created the framework of collaboration and partnering with a range of stakeholders, teams and organisations. Our recommendations look to build on progress already made and enhance local governance.