Measuring the value of local government pension schemes
Valuations of the Local Government Pension Scheme (Scotland) must be undertaken every four years to measure the costs of benefits being provided. Each valuation follows HM Treasury directions and regulations and are carried out by the Government Actuary's Department on behalf of the Scottish Government based on scheme data held at March of the relevant year.
The Government Actuary (GAD) has been appointed by Scottish Ministers to report under section 13 of the Public Service Pensions Act 2013, in connection with the 2023 actuarial valuations of the Local Government Pension Scheme (Scotland).
Section 13 requires the Government Actuary to report on whether the following aims are achieved:
- Compliance
- Consistency
- Solvency
- Long term cost efficiency
To meet these requirements, GAD considered the funding positions of the 11 individual funds, as at 31 March 2023.
This included consideration of the rates of employer contributions decided by their fund actuaries, which will apply from 1 April 2024 to 31 March 2027.