Analysis of Pension Scheme Funding Valuations

This technical report presents an analysis of completed valuations of UK pension schemes, focusing on the funding landscape as of September 2024. It details the funding levels, long-term funding targets, and integrated risk management approaches utilized by various schemes. The report indicates that for the first time, the average funding level exceeded 100%, with nearly two-thirds of schemes fully funded against their technical provisions. It outlines the new funding regime set to take effect for valuations after September 22, 2024, emphasizing the importance of a journey plan towards low dependency funding targets. Key findings include the use of long-term funding targets by 67% of schemes and a significant increase in hedging against interest rate and inflation risks. The report also discusses the implications of upcoming legislative changes and the potential for consolidation within the pension landscape, as well as the need for trustees to reassess their long-term funding strategies in light of these developments.