Bulletin 9: Employer update - 31 March 2025 Pension Fund valuation

The Fund Valuation date was the 31 March 2025, and the Valuation sets employer contribution rates for the period 1 April 2026 to 31 March 2029.

The draft Funding Strategy Statement (FSS) was taken to the Leicestershire Pension Committee on the 26 September 2025. The FSS includes the assumptions and methodology used in the calculation of the employer contribution rates.

The Fund’s whole fund funding rate has been calculated at 140%.

I’m aware of various national press releases, detailing the positive LGPS funding positions, and how these feed to employer rate reductions.

Leicestershire’s 140% whole funding position is positive news, and the Fund Actuary is now working on the indicative employer contribution rates. However, it’s important to note each employer is assessed individually and whilst the overall whole fund funding rate is positive, this does not automatically lead to all employers receiving an employer rate reduction.

The Pension Section will write to each individual employer in November 2025 with their indicative employer contribution rates for the period 1 April 2026 to 31 March 2029. Employers will also receive the draft FSS. A consultation on the FSS will commence in November 2025.

The latest Valuation timeline is below:

Valuation timeline
DateTopicStakeholder(s)
October 2025Fund Actuary calculating employer ratesHymans
November 2025Provide employers with their indicative rates. 1 April 2026 to 31 March 2029 and commence FSS consultationPension Section and Fund employers
December 2025/January 2026Consider changes to the FSSPension Section
February 2026Finalise FSSCommittee and Board
March 2026Final valuation report produced with final employer ratesHymans
April 2026 to March 2029Employer rates implementedPension Section and Fund employers

If you have any questions regarding the ongoing Fund Valuation, please email either phil.drury@leics.gov.uk or jaishika.patel@leics.gov.uk