Actuarial valuation
Why is an actuarial valuation carried out?
An actuarial valuation is conducted every three years. The aim is to assess and examine the ongoing financial position of Greater Manchester Pension Fund (GMPF) and the level of employer contributions that need to be made. You can now view the current 2022 actuarial valuation report.
All funds have to carry out a valuation by law. An actuarial valuation is necessary to assess the assets and liabilities of GMPF to determine if there is a surplus or deficit and to set the level of employer contributions for the next three years.
What does the actuarial valuation process involve?
The valuation process can be complex and take a number of months to complete. To give an idea of the processes and timescales involved in an actuarial valuation, we have created the following:
- Valuation begins at 31 March
- GMPF provides employer data to the Actuary as at 31 March
- Actuary and GMPF work together to clear data queries
- Actuary produces whole Fund results and presents them to the GMPF Management Panel
- GMPF produces its draft Funding Strategy Statement that will apply for next actuarial period. Presents it to Management Panel for approval
- GMPF consults on its draft Funding Strategy Statement with employers
- Employers feedback comments and all comments are considered by GMPF
- Using the Funding Strategy Statement and approved actuarial assumptions the Actuary calculates individual contribution rates
- GMPF and the Actuary meet to review individual results and new contribution rates
- Initial results are discussed with Greater Manchester Local Authorities and other strategic/large employers
- Employer results are sent to all employers via email
- Actuary produces formal Rates and Adjustment Certificate on 31 March making contribution rates binding henceforth
- New contribution rate takes effect from 1 April. Everyone must pay their new rate from this date