The London Pensions Fund Authority (LPFA) has today released provisional figures showing the 2013 valuation indicates a 95% funding level – despite the scheme's active membership plummeting by one eighth since 2010.

The LPFA oversees a £4.7bn pension fund providing Local Government Pension Scheme benefits to nearly 20,000 staff at not for profit organisations such as charities, universities and schools and 40,000 pensioners who worked for the Greater London Council and the Inner London Education Authority.

According to an initial assessment undertaken by Barnett Waddingham, a better asset and liability strategy, good investment returns and strong management of interest rate and inflation risks have all compensated for the fact scheme members are living longer.

However, overall membership levels are slightly smaller than the last valuation, the actuaries found.  Austerity measures and resulting opt-outs and job losses have seen the LPFA's active membership decrease by 12.5% since the last valuation, while deferred members increased by 2% and pensioner members increased by 3.5%

‘The positive indicative results of our 2013 valuation reflect the expertise and commitment of the entire team at LPFA,' said LPFA chief executive Mike Taylor.

‘We have worked hard in recent months to refine our asset and liability strategy, and are delighted to see that these efforts are already paying dividends.'