Local government Pension Scheme: Changes to the local valuation cycle and management of employer risk

30/07/2019
Response of the Association of School and College Leaders to the consultation on Local Government Pension Scheme: changes to the local valuation cycle and management of employer risk.
 
Question 1: As the Government has brought the LGPS scheme valuation onto the same quadrennial cycle as the other public service schemes, do you agree that LGPS fund valuations should also move from a triennial to a quadrennial valuation cycle?

This would seem sensible. We have, however, seen no evidence to support the reasoning behind this proposal.

Question 2: Are there any other risks or matters you think need to be considered, in addition to those identified above, before moving funds to a quadrennial cycle?

No. All risks, in our view, have been mentioned in the explanation.

Question 3: Do you agree the local fund valuation should be carried out at the same date as the scheme valuation?

Again, this seems to be sensible. However, we feel that there must be some protection against the huge increase in employer/employee costs generated by moving the cycle to four years. A shorter cycle introduces increased costs more gradually.

Full response to consultation