Local Government: Pensions

Mrs. Spelman
To ask the Secretary of State for Communities and Local Government what effect she estimates the recent stock market downturn will have on the funding of the Local Government Pension Scheme.

John Healey
The scheme’s most recent actuarial valuation of the 89 pension funds in England and Wales confirmed its ongoing solvency and set the required employer contributions until 31 March 2011.

The next triennial valuation takes place on 31 March 2010 and will assess the factors influencing the stability and solvency of the scheme. New employer contribution changes will apply from 1 April 2011 until 31 March 2014.

In the meantime, scheme administrating authorities will be monitoring events carefully and in consultation with their advisers within the context of their investment strategies and funding strategy statements, both of which are published locally.