All 12 Scottish LGPS funds now in surplus
Published: September 17, 2025
All 12 LGPS funds based in Scotland are now in surplus, this is according to an assessment by the government’s actuary department (GAD).
It comes as part of its third formal section 13 report on LGPS Scotland following the 2023 actuarial valuations. This saw it assess whether the scheme meets the statutory aims of compliance, consistency, solvency and long-term cost efficiency.
In total, it found assets rose to £60bn, and an aggregate funding level of 141%. This indicates that, under the assumptions used, the scheme had more assets than are expected to be needed to pay the promised benefits.
Based on its findings, the report makes three main recommendations – the first being that the Scottish Public Pensions Agency should continue engaging stakeholders to explore ways of achieving greater consistency across funds.
Additionally, it should consider guidance on surplus usage, balancing solvency and intergenerational fairness. Finally, and ahead of the 2026 valuations, it should monitor emerging issues and review the climate analysis principles.
GAD actuary Garth Foster said: “Our review demonstrates the real value of taking a whole-scheme perspective. We provide stakeholders with the transparency and insights they need to understand this vital scheme’s strong performance.”
