The Pension Fund (the Fund) revenue account shows an in-year surplus of £201.373m, up from a surplus of £48.068m in 2024/25. In cash terms the Fund returned a cash surplus for 2025/26 of £35.003m (2024/25 £35.684m), excluding asset revaluations and disposal gains and losses. As a result of the in-year surplus, net assets increased from £1,714m to £1,915m for the year ended 31 March 2026 representing an increase of 11.7%.

Pension Fund net liabilities must be reviewed every three years by an actuary and a recovery plan agreed to eliminate any deficit. An actuarial valuation of the London Borough of Ealing Pension Fund was carried out as at 31 March 2025 to determine the contribution rates with effect from 1 April 2026 to 31 March 2029.

The valuation also showed that a Primary Contribution Rate of 16.7% of pensionable pay per annum was required from employers. The Primary Rate is calculated as being sufficient, together with contributions paid by members, to meet all liabilities arising in respect of service after the valuation date.

The funding objective as set out in the FSS is to achieve and maintain a solvency funding level of 100% of liabilities (the solvency funding target). In line with the FSS, where a shortfall exists at the effective date of the valuation a deficit recovery plan will be put in 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 run off 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.

The aim of the MTFS is to ensure a stable and sustainable financial position that will allow the council to achieve its vision and strategic objectives. It reflects the impact of government funding decisions and the wider national and local economic context. It provides a robust financial framework to support the achievement of the council's overall objectives and delivery of services to its residents.

The general fund strategy has been set in the context of the Autumn Budget 2025 and the Local Government Finance Settlement (LGFS) which included reform on the Business Rates Retention System and the Fair Funding Review 2.0 (FFR2.0), outlining the most significant change to the local government funding framework in over a decade.