Funding Strategy Statement
Councils are reviewing their pension Funding Strategy Statements following positive 2025 actuarial valuations, with several funds reporting surpluses and potential reductions in employer contributions.
Islington's Pensions Committee considered the results of its draft Funding Strategy Statement consultation in March 2026, after the Islington Pension Fund announced a £215 million surplus in December 2025. This led to an expected 5-6% reduction in the council's required contribution rate. In March 2026, Hammersmith and Fulham's Pension Fund Committee approved its final 2025 valuation results, while Tower Hamlets' Pensions Committee approved an adjusted contribution rate strategy.
The 2025 triennial valuations have indicated improved financial health for several pension funds. Croydon Council's Pension Board reviewed initial results in November 2025, suggesting employer contribution rates could be cut by 3%. Harrow Council decided in November 2025 to consult with employers and stakeholders on its draft Funding Strategy Statement.
A Funding Strategy Statement outlines how a pension fund plans to meet its present and future liabilities, including actuarial assumptions and deficit recovery periods. These statements are typically reviewed every three years as part of the valuation process for pension funds.
Key facts
- Islington Pension Fund announced a £215 million surplus in December 2025. Source
- Islington Pension Fund's total required contribution rate for the council is expected to reduce by 5-6% per annum of pay. Source
- Croydon Council's Pension Board reviewed initial 2025 valuation results in November 2025, suggesting employer contribution rates could be cut by 3%. Source
- Harrow Council decided to consult on its draft Funding Strategy Statement in November 2025. Source
- Islington Pension Fund's long-term average future employer contribution rate for the whole fund was calculated to be 16.0% of pensionable pay. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.