The Government Actuary's Department's (GAD) report into the actuarial valuation of the Local Government Pension Scheme (LGPS) for Northern Ireland has concluded the scheme's in a strong financial position.
The Department of Communities appointed the Government Actuary to undertake the report under Section 13 of the Public Service Pensions Act (Northern Ireland) 2014. This covers the actuarial valuation of the LGPS NI as at 31 March 2019. Section 13 requires us to assess whether the scheme has achieved the following aims:
- compliance
- consistency
- solvency
- long term cost efficiency
Top level findings
GAD based its findings on the actuarial valuation of the LGPS NI, data from the Northern Ireland Local Government Officers' Superannuation Committee and its actuary, Aon.
We found the funding position of the LGPS NI has improved since 31 March 2016 and the scheme appears to be in a strong financial position. Among our top-level findings are that the:
- total assets have grown in market value from £5.8 billion to £8.0 billion
- total liabilities disclosed in the 2019 local valuation report amounted to £7.2 billion (the local valuation is required to be completed using prudent assumptions)
- aggregate funding level on the prudent local basis has improved from 96% to 112% (at 2019)
- improved funding level is due in large part to strong asset returns over the 3-year period to 31 March 2019
Funding level
Although the funding level had improved due to change in the demographic assumptions, this was offset by changes in financial assumptions. Furthermore, the funding level on GAD's best estimate basis has reduced from 122% (at 2016) to 114% (at 2019).
One of the report's authors GAD actuary John Bayliss said: "Our report into this actuarial valuation of the LGPS NI showed the fund continues in good health. The scheme has grown significantly over the 3 years since we last examined it."
