Cost cap valuation of the Local Government Pension Scheme (Northern Ireland)
The Government Actuary's Department (GAD) has prepared a cost cap valuation of the Local Government Pension Scheme (Northern Ireland) as at 31 March 2016.
Documents
Details
The Government established a cost control mechanism for public service pension schemes to ensure a fair balance of risks between scheme members and the taxpayer. The employer cost cap for the Local Government Pension Scheme (Northern Ireland) was set at 17.0% of pay, following the 2013 valuation. If at subsequent valuations the cost of the scheme is outside a corridor above/below the employer cost cap, the Public Service Pensions Act (Northern Ireland) 2014 requires action to be taken to bring costs back to the target cost.
The cost cap cost of the scheme calculated in this cost cap valuation is 1.6% of pay below the employer cost cap. The result lies within the ±2% corridor, which means that no changes to benefits or member contributions are required.
The documents published on this page provide further details. Two valuation reports have been published to reflect that the cost cap valuation was paused following the McCloud judgment. The ‘pre-McCloud valuation report’ sets out an intermediate value required to calculate the cost cap cost of the scheme. The ‘cost cap valuation report’ sets out the final result of the valuation after the consideration of the remedy of the McCloud discrimination. Both have been prepared in accordance with Department of Finance Directions of 22 November 2021.
The ‘Assumptions, methodology and data report’ sets out GAD’s advice to the Department for Communities on the appropriate approach for calculating the cost cap cost of the scheme in light of remedying the age discrimination found by the McCloud judgment.
The ‘Advice on assumptions report’ provides advice on the assumptions to adopt for the 2016 valuation, before allowance for McCloud.
The ‘Report on membership data’ summarises the data provided for the valuation and adjustments made to it.