Every 3 years, our Fund undertakes a valuation in conjunction with our Actuary. Our 31 March 2022 valuation assessed the Fund’s financial position at that date, based on our assets (money in the fund) and liabilities (current and future pensions payable).
We use these results to agree employer contribution rates for the period April 2023 to March 2026. Our 2022 Active Fund valuation results reflect an ongoing funding level of 103%, which is excellent news (2019: 106%). We anticipate this will be one of the highest in the Local Government Pension Scheme (LGPS).
We’re responsible investors and our investment performance exceeded assumptions by £570million over the valuation period. Our employers, the Environment Agency and NRW remain committed to ensuring the Fund maintains its good position going forward.
The Closed Fund is bespoke in how it’s funding works as this is funded through grant-in-aid from Defra. We’ve seen the Closed Fund’s position improve to 67% at 31 March 2022, from 51% in 2019. We expect this as the Fund continues to mature.