Hackney Pension Fund surplus hits £710m as investments strengthen
The Hackney Pension Fund has seen its surplus grow to £710 million, according to an actuarial and funding update presented to the Pensions Committee. The fund's estimated funding level at 30 June 2026 stood at 140%, an increase from 138% at the time of the 2025 valuation.
The strong performance is attributed to favourable investment returns, with the fund's assets growing to £2.48 billion against liabilities of £1.77 billion. This represents a significant increase from the 31 March 2025 figures, when assets stood at £2.12 billion and liabilities at £1.54 billion, resulting in a surplus of £0.58 billion.
The required future investment return to achieve 100% funding has decreased to 3.9% per annum, with the likelihood of achieving this return remaining above 95%. The fund's membership as of 31 March 2025 comprised 7,718 active members, 11,328 deferred pensioners, and 8,613 pensioners and dependants.
This positive funding position has led to a reduction in employer contribution rates. The Council has been offered a phased reduction to their contribution rate, starting with 3% in year 1 (2026/27), followed by 2% of pay in year 2 (2027/28), and a further 1% of pay in year 3 (2028/29). These reductions have been incorporated into the Council's Medium Term Financial Planning.
The report indicates that the fund's funding plan is robust and compliant with regulatory requirements. Further details on the actuarial and funding update can be found in the Public reports pack for the Pensions Committee meeting on Tuesday 22 September 2026.
Public reports pack Tuesday 22 Sep 2026 18:30 Pensions Committee