COVID-19: LGPS and SHPS see reduction in funding levels amid COVID-19 pandemic

Isio, a UK pension and defined benefit (DB) advisory service, has revealed that the Local Government Pension Scheme (LGPS) and the Social Housing Pension Scheme (SHPS) have been adversely impacted by the COVID-19 pandemic, resulting in an approximate 10% and 5% decrease respectively in scheme funding levels.

Furthermore, the National Housing Federation (NHF) pointed out that the Pension Regulator's upcoming DB funding code of practice could put more pressure on scheme funding levels with sponsoring employers expecting "to pay more in, more quickly". Acknowledging the issue, the NHF indicated that it will meet with the Regulator to discuss how factors, including strong covenant, can be reflected in the new funding schedule.

Source: Welsh govt launches consultation on firefighter pension changes, pensionsage.com, 10 July 2020.