place which requires additional contributions to correct the shortfall. Equally, where there is a surplus, it may be appropriate to offset this against contributions for future service, in which case contribution reductions will be put in place to allow for this.
The FSS sets out the process for determining the contributions in respect of any deficit / surplus for each employer. At the 2025 actuarial valuation the average recovery period adopted for employers in deficit was 12 years, and the runoff period for employers with a recoverable surplus was also 12 years. The resulting total “Secondary Rate” for 2026/29 was, on average, a surplus offset of approximately £3m per annum (which allows for the contribution plans which have been set for individual employers under the provisions of the FSS), although this varies year on year.
Further details regarding the results of the valuation are contained in the formal report on the actuarial valuation dated March 2026. In practice, each individual employer's position is assessed separately and the contributions required are set out in the report. In addition to the certified contribution rates, payments to cover additional liabilities arising from early retirements (other than ill-health retirements) will be made to the Fund by the employers.
The valuation was carried out using the projected unit actuarial method. Full yield curves were used in calculating the liabilities and the approximate single equivalent rates for the main actuarial assumptions used for assessing the Solvency Funding Target and the Primary Contribution Rate, were as follows:
| For past service liabilities (Solvency Funding Target) | For future service liabilities (Primary rate of contribution) | |
|---|---|---|
| Rate of return on investments (discount rate) | 5.35% per annum | 4.85% per annum |
| Rate of pay increases (long term) | 3.85% per annum | 3.85% per annum |
| Rate of increases in pensions in payment (in excess of GMP) | 2.60% per annum | 2.60% per annum |
The assets were assessed at market value.
The next triennial actuarial valuation of the Fund is due as at 31 March 2028. Based on the results of this valuation, the contribution rates payable by the individual employers will be revised with effect from 1 April 2029.