Laura Sharman 24 March 2017

Local government pension deficit falls to £35bn

Local government pension deficit falls to £35bn image

The Local Government Pension Scheme (LGPS) deficit has fallen to half the level previously expected - going down to around £35bn - new figures have revealed.

KPMG had anticipated a deficit of around £70bn based on a like-for-like basis with the 2013 valuation, but a higher discount rate used by actuaries meant the deficit had reduced ‘significantly’.

However, the firm warned this does increase the risk being taken by LGPS employers.

Steve Simkins, pensions Partner at KPMG, said: ‘The actuarial valuation indicates that employers in the LGPS collectively need to find around £35bn to plug the funding gap. The fact that the deficit fell in such difficult market conditions highlights the increasing reliance of the LGPS on the future performance of its assets and this puts employers in a higher risk position.

‘Despite very different assumptions and approaches, outcomes for local authorities are largely consistent but our analysis suggests that other employers are increasingly exposed to a postcode lottery according to the fund they are in and the scheme actuary involved.’

Fair funding delay image

Fair funding delay

The delay to the fair funding review can only add to anxiety over the future of local government, says Mark Whitehead
Highways jobs

Senior Traffic Engineer

East Riding of Yorkshire Council
£32,029 - £34,788 per annum
Currently seeking an enthusiastic and experienced individual to manage our Traffic Team. East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Youth and Community Based Commissioner- Colchester and Tendring

Essex County Council
£18117 - £19106.0 per month
Annual Salary JNC SCP 3 - Unqualified £18,117JNC SCP 6 - Qualified £19,106 We are currently seeking a Youth and Community Based Commissioner to suppo England, Essex, Colchester
Recuriter: Essex County Council

Networks Technician

Essex County Council
£24001.0 - £28280 per annum
Technology Services is focused on ensuring current and future investment in technology to maximise the opportunities to support ECC from a technology England, Essex, Basildon
Recuriter: Essex County Council

Youth Worker x7

Sandwell Metropolitan Borough Council
£18,795 - £19,945 per annum
Looking for a Youth Worker who can meet the needs and aspirations of young people and deliver high quality Youth Work. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Customer Specialist

Essex County Council
£20001.0 - £22220.0 per annum
Essex County Council (ECC) are currently recruiting for a Customer specialist within the Technical Processing and Optimisation Team. The Team is respo England, Essex, Chelmsford
Recuriter: Essex County Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine