LGPS records funding level improvements between 2022 and 2025
Published: September 15, 2025
There have been funding level improvements in the LGPS between 2022 and 2025, according to Hymans Robertson’s initial valuation results for 35 funds in England and Wales.
Having said this, its analysis shows changes in funding levels within the sector will be varied at the 2025 valuation. This is because of differences in actual experience since 2022, such as investment performance and beliefs about the future – particularly the level of assumed future investment returns.
As such, Hymans says funds should avoid making strategic decisions based solely on these headline funding positions as they just give a snapshot view.
Reflecting on these findings, Hymans Robertson’s head of LGPS valuations Tom Hoare said: “Different investment strategies have resulted in differing levels of returns amongst funds since 2022, however I would urge caution before leaping to any conclusions.
“Three years is a short period for long-term investors, and the fact each fund has a tailored strategy to match its beliefs and risk appetite is a sign of strong governance and diversity within the LGPS.
High inflation since 2022 has impacted all funds, with significant increases in inflation-linked benefits. However, these spikes in inflation were largely predicted and baked into assumptions at the 2022 valuation, so the actual impact on funding positions has been less pronounced.”
