As required by The Local Government Pension Scheme Regulations 2013, our draft revised Funding Strategy Statement (FSS) is subject to review through consultation with appropriate stakeholders as part of each triennial actuarial valuation.
The FSS sets out the guidelines for the valuation exercise including;
- how each employer’s LGPS liabilities are measured
- the pace at which the liabilities are funded
- how employers, or pools of employers, pay for their own liabilities
A draft revised FSS, prepared as part of the 2025 Valuation exercise in compliance with the Ministry of Housing, Communities and Local Government’s (MHCLG) Guidance for Preparing and maintaining a Funding Strategy Statement (FSS) is attached to this page.
Proposed changes and updates to the Funding Strategy Statement
- Increased likelihoods of success for achieving a 100% funding target by the end of the employer’s time horizon for all categories of employer in recognition of growing uncertainty in the funding environment
- Inclusion of annual contribution rate reviews for employers with a 0% contribution rate.
- Inclusion of Further Education Colleges and Town & Parish Councils into the stabilisation mechanism
- Stabilisation mechanism extended to allow contribution rate changes of up to 2% of pay per year for academies reflecting the less developed maturity of their membership profiles compared to other long-term employers in the Fund. (i.e. greater proportions of active members where membership is more sensitive to salary growth, inflation and future liabilities)
- Adjustment to the stabilisation mechanism to allow for greater contribution rate changes or acceleration of changes (e.g. where an employer’s stabilisation allows for a 1% of pay per year reduction in employer contributions, to allow for a 3% reduction from the first year of the valuation period)
How to provide feedback
Employers participating in the Fund and other stakeholders, are encouraged to review, consider and provide feedback on the draft revised FSS.
A Microsoft form will be available on this webpage from 11 December 2025, enabling you to provide your feedback quickly and easily.
Key dates
The consultation will be open from 12:00pm on 11 December 2025 following the Employer Forum webinar and will close at 11:59pm on 01 February 2026.
A final version of the FSS will be reviewed by Derbyshire County Council’s Pensions and Investments Committee (as Administering Authority of the Pension Fund) on 4 March 2026 taking into consideration any comments and feedback received.
Supporting information
The Pensions and Investments Committee approved this consultation process on 3 December 2025. Information about this committee meeting can be found on the Derbyshire Democracy website.
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Links to useful documents