Research into councils' use of new pensions calculations indicates bespoke longevity assumptions could reduce scheme costs. A study of 18 funds within the Local Government Pension Scheme, published by Club Vita on 23 October, found funds which tailored longevity assumptions to their members, according to lifestyle and affluence, for example, more accurately forecast the cash required to fund their retirees. The research found the overall value placed on pensions was lower in all 18 funds, leading to higher solvency levels and reduced deficits. Club Vita claimed that, ‘spreading these gains over 20 years, employers' contributions would reduce by an average of 1%, or a saving of £2m a year on average'.
