2025 Actuarial Valuation Summary

The Cheshire Pension Fund’s latest actuarial valuation has been completed as at 31 March 2025. This review assesses the Fund’s financial health and sets employer contribution rates for the period from 1 April 2026 to 31 March 2029.
 
Strong funding position
 
The Fund remains in a very strong position, with a funding level of 136%, up from 113% in 2022. At the valuation date, the Fund held £6.7 billion in assets compared with £4.9 billion of liabilities, resulting in a surplus of £1.8 billion.
 
This means the Fund has more than sufficient assets to meet benefits already built up.
 
Employer contributions
 
As a result of the improved position, overall employer contribution rates have reduced. The primary rate has fallen to 19.4% of pay, and secondary contributions are negative on average, reflecting the Fund’s surplus.
 
Individual contribution rates still vary between employers to reflect their specific circumstances, but the overall outcome supports affordability while maintaining long-term stability.
 
Why has the position improved?
 
The stronger funding position is mainly due to higher expected future investment returns. The Fund has taken a balanced approach, allowing for improved future conditions while maintaining appropriate prudence in its assumptions.
 
Employer engagement
 
Employers have been closely involved throughout the valuation process. Two online meetings were held—one for academy employers and one for all other employers—and a number of one-to-one meetings were arranged where requested.
 
A consultation was carried out on the updated Funding Strategy Statement (FSS). Two responses were received and the pacing of reductions was altered as a result. All employers have now been formally advised of their revised contribution rates payable from 1 April 2026.
 
Risks and outlook
 
Like all pension funds, the Fund’s position depends on future economic and demographic conditions, including investment returns, inflation and life expectancy. These risks are actively managed through the Fund’s funding and investment strategies.
 
Based on current assumptions, the Fund is expected to remain well funded over the long term and continue to meet its objectives with a high degree of confidence.
 
What happens next?
 
The new contribution rates will apply from April 2026.
 
The next full actuarial valuation will be carried out as at 31 March 2028.
 
For more detail, please see the full valuation report and the FSS.