The Lancashire Local Pension Board met on Tuesday, 27 January 2026, to discuss a range of updates concerning the Lancashire County Pension Fund. Key topics included regulatory changes affecting pension schemes, the progress of the fund's communications strategy, and an update on pensions administration. The Board was also scheduled to review the fund's risk register and consider the annual compliance report for The Pension Regulator's General Code of Practice.

Regulatory Update

The Board was scheduled to receive an update on various regulatory issues impacting pension schemes. This included information on the Fit for the Future technical consultation, which aims to implement pooling and local investment proposals within the Local Government Pension Scheme (LGPS) in England and Wales. The consultation sought views on draft statutory instruments concerning the pooling, management, and investment of funds, as well as amendments to existing regulations. The report indicated that final regulations were expected to take effect on 1 April 2026. Additionally, updates were anticipated regarding the Autumn Budget 2025, including changes to the Triple-Lock mechanism for State Pensions and implications for salary sacrifice arrangements. The consultation on Scheme Improvements (Access & Protections) was also to be discussed, covering proposed changes to the Normal Minimum Pension Age, access for elected members, and arrangements for academies and outsourcing contracts.

Pensions Administration Strategy Statement Review

A review of the Pensions Administration Strategy Statement (PASS) was scheduled for discussion. The PASS defines the roles and responsibilities of the Lancashire County Pension Fund, Local Pensions Partnership Administration (LPPA), and scheme employers, setting out quality and performance standards. The report highlighted key changes to the draft PASS, including a refined introduction, a separate section for the purpose and objectives of the PASS, and updated responsibilities for Fund officers, LPPA, and scheme employers. The revised PASS also included updated performance targets and service level agreements (SLAs), and a revised policy on charging employers for non-compliance. The Board was asked to provide feedback on the draft PASS before it was shared with employers for consultation.

Update on Funding Strategy Statement

The Board was scheduled to receive an update on the 2025 Valuation Project and the consultation on the Funding Strategy Statement (FSS). The report detailed engagement activities undertaken since July 2025, including workshops for Pension Fund Committee and Board members, employer group sessions with the Actuary, and one-to-one sessions with individual employers. Key themes from the consultation indicated that most employers were accepting of the proposed funding strategy and contribution rates, although some councils and academy trusts had requested larger reductions. The report also outlined key risks associated with the approval of funding parameters, such as the impact of reduced employer contributions on the Fund's cash flow and the potential for future contribution rate increases. An additional Pension Fund Committee meeting was scheduled for January 2026 to make a final decision on the key parameters affecting employer contribution rates.

Lancashire County Pension Fund - Communications Strategy Update

An update on the review of the Fund's Communications Strategy was to be presented. The strategy, last reviewed in 2021, had been redrafted to reflect current communications activity and clarify responsibilities between the Fund and LPPA. The report detailed further meetings with LPPA regarding reaching members who may not engage online, including indicative costings for a postal exercise. Discussions with the County Council's Communications and Digital Services teams regarding a potential refresh of the Fund's website were also noted. The Board was asked to comment on the proposed paper-based communications exercise for deferred members.

Pensions Administration Update

The Board was scheduled to receive an update on pensions administration matters, including Service Level Agreement (SLA) performance data and a 30-day member experience report for active retirements. The report indicated that overall SLA performance had been maintained, with a high percentage of cases processed within target times. However, the report also highlighted challenges in achieving the 30-day target for first pension payments, particularly for members with Additional Voluntary Contributions (AVCs), and noted the impact of employer notification timeliness. Updates on the Collaborative Pensions Optimisation Project (CPOP), aimed at improving the retirement process, were also expected, along with information on disclosure reporting and communications activity.

Pensions Dashboard

An update on the steps being taken to ensure compliance with the government's Pensions Dashboard initiative was scheduled. The Pensions Dashboard Programme (PDP) aims to allow individuals to access all their pension information in one place. The report noted that the Lancashire County Pension Fund had been connected to the Pensions Dashboard on 15 December 2025, following a delay due to an issue identified during penetration testing. The next phase of the project would focus on data quality and readiness, with LPPA providing quarterly reports on the accuracy of matching data. The Board was asked to consider and comment on the report to ensure compliance with the Pensions Dashboard Regulations 2022.

General Code of Practice - Annual Compliance Report

The Board was to receive an annual update on the Lancashire County Pension Fund's compliance with The Pension Regulator's General Code of Practice. The report indicated that the Fund was assessed as continuing to comply with the requirements of all mandatory modules. Key controls supporting compliance included the established governance structure, a training plan for Board and Committee members, a live risk register, and independent reviews of LPPA and LPPI's processes. Upcoming activity was expected to focus on conflicts of interest, knowledge and understanding requirements, cyber controls, and managing advisers and service providers.

LCPF Risk Register

An update on the risks associated with the Lancashire County Pension Fund was scheduled. The report focused on two key risks: I4 – Actuarial Valuation and Monitoring of Funding and O2 – LCPF Reliance on Key Persons and Expertise. The report indicated that the 2025 valuation results showed a strong funding position, but a balance between contribution affordability and future liability risks needed to be maintained. The departure of the Finance Lead Officer and upcoming maternity leave within the finance team were highlighted as risks to the operational capacity of the Pension Fund team. The Board was asked to consider and comment on these key risks.

LCPF Breaches & Complaints Report

The Board was scheduled to receive an update on reported breaches and complaints for the period 1 September 2025 to 30 November 2025. The report noted an increase in contribution incidents, primarily due to a change in the remittance submission process for employers. There was one data breach reported during the quarter, which was not considered materially significant to the Information Commissioner's Office (ICO). The LPPA Complaints Board report for Q2 2025 identified three key themes: Delays, Communications, and Data. Actions to address these themes included engagement with third parties, employers, and improvements to Annual Benefit Statement (ABS) production. A complaint from an Independent Financial Advisor regarding LPPA's management and administration was also discussed, with LPPA outlining actions to improve services, including enhanced training and case ownership. The Board was also asked to note the draft reviewed Breaches policy.

Part I Reports on the Pension Fund Committee Agenda

The Board was to be updated on Part I reports considered at the Pension Fund Committee meeting on 12 December 2025. Specific items highlighted for discussion included Budget Monitoring 2025/26 Q2 and the Responsible Investments Report. Updates on the Funding Strategy Statement Consultation and the Local Pensions Partnership Annual Report and Accounts 2024/25 were also on the agenda.

Programme of Meetings 2026/27

The Board was asked to approve the proposed programme of meetings for 2026/27. The suggested dates were Wednesday 15 July 2026, Tuesday 20 October 2026, Tuesday 26 January 2027, and Tuesday 13 April 2027, with all meetings scheduled to be held at County Hall, Preston, commencing at 2.00 pm.