Form

SF3: local government pension scheme funds - validation notes

Updated 2 September 2024

Applies to England

The SF3 is subjected to a strict validation process as detailed below. Once the form has been submitted, we carry out a number of checks to satisfy ourselves that the form has been completed correctly. Where the data on SF3 2023-24 varies significantly from that provided on SF3 2022-23 we seek an explanation for the variance.

The SF3 form in DELTA has in-built validation checks and these clearly identify areas where further information is required. Local authorities are asked to complete the explanation boxes with reasons for the variance, where applicable. If explanations are not provided or provide insufficient explanation, then we will always contact the named local authority contact to resolve an error or seek an explanation for all entries that fail our validation tests. The explanations help us understand the data and changes being provided and allow us to ensure good quality data are being published. Examples of insufficient explanations that will be queried as ‘OK’, ‘Data up or down’ or ‘Checked’ unless further explanations are provided elsewhere in the form

Most of the data input cells will only accept positive figures. Figures should be rounded to the nearest whole number except for the primary contributions (line C1) percentage rate which should be reported to 2 decimal places and the number of full time equivalents in Section G who should be reported to an appropriate number of decimal places.

There are currently no in-form validation checks for Part 3 of the form currently. We will contact the authority if we believe there are issues with the data once it has been submitted.

Specific details on the validation checks on each part of the SF3 are described in this document.

Part 1: Statement of Expenditure and Income 2023-24

Test 1: Total expenditure (line 10)

We compare the figure for 2023-24 total expenditure against the 2022-23 figure; you need to explain any changes in excess of ±10%.

Test 2: Total income (line 16)

We compare the figure for 2023-24 total income against the 2022-23 figure; you need to explain any changes in excess of ±20%.   ## Part 2: Membership, retirements and additional expenditure and income items

Section A – Membership at 31 March 2024

Test 1: Total number of employers (line A1)

We compare the figure for 2023-24 total number of employers against the 2022-23 figure; you need to explain any changes in excess of ±10% and an actual change of ±25, or where there is no change.

Test 2: Total number of contributing members (line A2)

We compare the figure for 2023-24 total number of contributing members against the 2022-23 figure; you need to explain any changes in excess of ±5% and an actual change of ±750, or where there is no change.

Test 3: Number of pensioners (line A3)

We compare the figure for 2023-24 number of pensioners against the 2022-23 figure; you need to explain any changes in excess of ±5% and an actual change of ±500, or where there is no change.

Test 4: Number of former members entitled to deferred benefits (line A4)

We compare the figure for 2023-24 number of former members entitled to deferred benefits against the 2022-23 figure; you need to explain any changes in excess of ±5% and an actual change of ±1,000, or where there is no change.

Test 5: Number of flexible retirees (line A5)

We compare the figure for 2023-24 number of flexible retirees against the 2022-23 figure; you need to explain any changes in excess of ±50% and an actual change of ±25, or where there is no change.

Section B – Realisation of fund assets at 31 March 2024

Test 1: Net profit on realisation of assets (line B3)

We compare the figure for 2023-24 net profit on realisation of assets against the 2022-23 figure; you need to explain any changes in excess of ±30% and an actual change of ±£250 million, or where there is no change.

Test 2:

If the net profit equals zero, an explanation will be required.

Section C – Employers’ contributions during 2023-24

Test 1: Total contributions (line C3)

We compare the figure for 2023-24 total contributions against the 2022-23 figure; you need to explain any changes in excess of ±20% and an actual change of ±£20 million, or where there is no change.

Test 2: Section 16 (2)(b) contributions as a percentage of secondary contributions (line C2a/line C2)

If the Section 16 (2)(b) contributions (line C2a) in 2023-24 are more than 15% of the total secondary contributions (line C2) in 2023-24 we require an explanation.

Note: A statement will also appear if the figure in C3 does not match the figure in Part 1 Line 12. Please check your figures and correct where necessary before you submit. Unless the difference is less than ±10 (assumed to be due to rounding), then you will not be able to submit your form until this has been resolved.

Section D – Investment income during 2023-24

Test 1: Total income (line D5)

We compare the figure for 2023-24 total income against the 2022-23 figure; you need to explain any changes in excess of ±20% and an actual change of ±£10 million, or where there is no change.

Note: A statement will also appear if the figure in D5 does not match the figure in Part 1 Line 13. Please check your figures and correct where necessary before you submit. Unless the difference is less than ±10 (assumed to be due to rounding), then you will not be able to submit your form until this has been resolved.

Section E – Market value of the fund

Test 1: At 31 March (line E2)

We compare the figure for 31 March 2024 against the figure for 31 March 2023; you need to explain any changes in excess of ±5% and an actual change of ±£200 million, or where there is no change.

Test 2: At 31 March 2023 vs 1 April 2023

We compare the figure for 31 March 2023 from the 2022-23 SF3 form against the figure for 1 April 2023 from the 2023-24 form. We require an explanation if the figures are different.

Section F – Pensions (increase) payments reimbursed by employers during 2023-24

Test 1: Total expenditure (line F1)

We compare the figure for 2023-24 total expenditure against the 2022-23 figure; you need to explain any changes in excess of ±£50,000, or where there is no change.

Section G – Administration staff of the fund at 31 March 2024

Test 1: Total number of staff (line G1 + line G2)

We compare the figure for 2023-24 total number of staff against the 2022-23 figure; you need to explain if there is an actual change of ±5, or where there is no change.

Section H: Management expenses charged to the fund during 2023-24

Test 1: Total management expenses charges to the fund (line H4)

We compare the figure for 2023-24 total management expenses charged to the fund against the 2022-23 figure; you need to explain any changes in excess of ±20% and an actual change of ±£5 million, or where there is no change.

Test 2

The figure for the Investment management expenses (line H1) should be greater than the sum of: Administration expenses (line H2) and Oversight and governance expenses (line H3). You will need to provide a comment if this is not the case.

Note: A statement will also appear if the figure in H4 does not match the figure in Part 1 Line 8. Please check your figures and correct where necessary before you submit. Unless the difference is less than ±10 (assumed to be due to rounding), then you will not be able to submit your form until this has been resolved.

Section I: Retirements in 2023-24

Test 1: Sub-total (line I5)

We compare the figure for 2023-24 sub-total against the 2022-23 figure; you need to explain any changes in excess of ±20% and an actual change of ±100, or where there is no change.

Test 2: Normal retirements (line I6)

We compare the figure for 2023-24 normal retirements against the 2022-23 figure; you need to explain any changes in excess of ±20% and an actual change of ±100, or where there is no change.

Test 3: Total retirements (line I7)

We compare the figure for 2023-24 total retirements against the 2022-23 figure; you need to explain any changes in excess of ±20% and an actual change of ±100, or where there is no change.