An assessment of the 2022 valuation of the Local Government Pension Scheme (LGPS) in Northern Ireland shows that overall, the LGPS NI was in good health. The analysis was undertaken by the Government Actuary’s Department (GAD).
The section 13 report was completed under specific 2014 legislation on public service pensions. The Government Actuary is required to review the fund’s actuarial valuation and report on GAD’s findings on each of the 4 aims prescribed by the legislation:
- compliance
- consistency
- solvency
- long-term cost efficiency
Report results
GAD’s analysis of the LGPS NI found the funding position of the fund has remained broadly stable since 31 March 2019, maintaining its relatively strong financial position. Its total assets have grown from £8.0 billion in 2019 to £10.2 billion in 2022.
Our assessment includes recommendations on the treatment of surpluses. This recognises the importance of balancing intergenerational fairness with the priority of maintaining stability of contributions when setting employer contribution rates.
GAD actuary Garth Foster co-wrote the report. He said: “The section 13 report provides an overview of the valuation, and the general health, of the LGPS NI scheme. GAD’s analysis has identified areas of success, but also recognises the importance of continuing vigilance around the general risks affecting the scheme.”
Scheme details
The LGPS NI is comprised of a single fund - the Northern Ireland Local Government Officers’ Superannuation Committee pension fund (‘NILGOSC’). LGPS scheme employers include local authorities, schools, colleges, housing associations, and other associated bodies.
This report is based on:
- the 2022 actuarial valuation of the NILGOSC pension fund
- data provided by the fund
- information provided by Aon – the fund’s actuarial advisers.
This is the third section 13 report of the LGPS NI; previous assessments were undertaken in 2016 and 2019.