Funding plans that are optimised for each employer in an LGPS fund result in the best possible funding outcomes. The contribution strategy is the key focus and outcome of a valuation, but don’t forget about optimising the other tool at your disposal – the investment strategy.

In the absence of investment returns, LGPS benefits would cost upwards of 70% of pay. A return of 4% pa brings this down to around 20% of pay. Achieving this return, whilst balancing the associated risk with investing in financial markets, is key to the long-term sustainable funding of LGPS benefits.