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Pension Fund Committee - Friday, 19 June 2026 - 10.00 am
June 19, 2026 at 10:00 am Pension Fund Committee View on council websiteSummary
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The Pension Fund Committee of Lancashire County Council met on Friday 19 June 2026 to discuss a range of important matters concerning the Fund's administration, investments, and governance. Key decisions included the approval of the revised Investment Beliefs, the appointment of an Independent Person, and the adoption of the 2026/27 Training Plan.
Local Government Reorganisation (LGR) and Administration Performance
A significant portion of the meeting was dedicated to discussing the implications of Local Government Reorganisation (LGR) on pension administration. Ms S Roylance raised concerns about potential disruption and redundancies, similar to previous LGR processes. Ms Jo Derbyshire, Chief Executive of Local Pensions Partnership Administration Ltd (LPPA), assured the committee that LPPA had learned from past experiences and would be bringing in additional resources, managing LGR as a discrete project with dedicated management. She highlighted that while some disruption for members undergoing LGR was possible, LPPA would be resourced to manage the process appropriately.
LPPA's overall casework performance exceeded the 95% SLA target, achieving 99.2% for the quarter. However, a key concern remains the timeliness of pension payments for members retiring with an Additional Voluntary Contribution (AVC), which can cause delays. LPPA is working with AVC providers to speed up this process. The committee also noted that where LPPA is not given at least 30 days' notice of a member's retirement, the likelihood of paying the first pension payment within 30 days drops significantly from 75-80% to 15-20%. This underscores the importance of timely notification from employers.
LPPA has also made progress on key projects, including the McCloud Remedy, with 84.4% of eligible members ready for Annual Benefit Statement (ABS) production. The Pensions Dashboard Programme is also progressing, with over 98% of Lancashire members ready for 'find requests'.
Investment Strategy and Beliefs
The committee reviewed and approved revised Investment Beliefs as part of the ongoing review of the Fund's Investment Strategy Statement (ISS). These beliefs now place greater emphasis on the long-term nature of the Fund's investments and include a new belief regarding the Fund's approach to local investments. Pete George, Head of Fund, highlighted that the Fund is in a strong financial position, with the eighth highest funding level among LGPS funds in England and Wales, and the third lowest contribution rate.
Discussions around local investment explored opportunities in social housing, with reference to Greater Manchester Pension Fund's returns. Chris Batts from LPPI explained the complexities of housing investments, including the higher running costs compared to commercial property, but noted that LPPI is developing a platform to make these investments more viable. Councillor Rick Edwards raised the potential for investing in areas such as farming and local produce for schools, suggesting engagement with other committees. Councillor Tom Pickup also inquired about investing in SEND schools and care homes within Lancashire, given the tendency for residents to stay in the county. Pete George confirmed that any investment would need a strong business case and would be considered based on risk and return.
Governance and Audit
The committee received updates on governance matters, including progress on the 'Fit for the Future' programme, which is due to come into effect on 30 June 2026. Lancashire is noted as being at the forefront of implementing these changes, with Pete George formally designated as the Senior LGPS Officer. The report also detailed the Fund's risk register, noting a reduction in the risk associated with the actuarial valuation following its completion, and the addition of a new risk related to Local Government Reorganisation.
The external audit plan for 2025/26 from Grant Thornton was presented, outlining the scope and approach for auditing the Fund's accounts and governance. Key risks identified include management override of controls, valuation of Level 3 investments, and valuation of directly held properties. The audit fee for the Fund is estimated at £122,703. Gary Field, Director of Law and Governance, confirmed that the procurement of external auditors is managed nationally through Public Sector Audit Appointments.
Appointment of Independent Person
The committee approved the appointment of Ms Marian George as the Independent Person for the Lancashire County Pension Fund for a three-year term commencing 1 July 2026. Ms George, currently an Independent Investment Advisor, was selected following a competitive process and brings extensive experience in pensions, investments, and governance.
Training Plan
The revised Training Plan for 2026/27 was approved. Pete George highlighted that the plan had been updated based on lessons learned from previous discussions, with an increased focus on workshops and training sessions related to the Investment Strategy Statement. The Chair also noted that five members had not yet completed their mandatory LOLA training, urging them to do so.
Financial Outturn and Budget
The committee reviewed the financial outturn for the 2025/26 financial year. Expenditure exceeded income by £82.3 million, an improvement on the budgeted deficit of £101.4 million. This was largely due to lower than expected investment management fees, as investment returns were lower than anticipated. Contributions received and transfers in were higher than budgeted. The committee noted that future budgets would focus more on areas directly controlled by the Fund, such as management expenses and governance costs.
Responsible Investment
An update on responsible investment activity was provided, highlighting an increase in Green exposure (4.1%) and Brown exposure (2.23%) in the Fund's portfolio, primarily due to valuation movements. LPPI maintained full voting coverage, supporting 93% of management proposals, and actively engaged on issues such as board independence and diversity. The report also detailed LPPI's pilot project with Thrive to assess tenant-led social impact in its real estate portfolio, which identified significant social value generated through employment and community initiatives.
Other Matters
The committee noted the establishment of a new Pension Shareholder Governance Committee, approved by Full Council, to streamline shareholder decision-making functions related to pensions companies. The committee also noted the date of the next meeting, scheduled for 18 September 2026.
Delegated decisions linked to this meeting
Decision summaries below are AI-generated from the council’s published record. Check the council source or the full decision page before relying on them.
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Investment Panel - Update
For DeterminationThe Pension Fund Committee of Lancashire Council decided for determination on 19/06/2026. This decision concerned an update report on items considered at the Investment Panel on 19 March 2026.
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Investment Performance Report
For DeterminationLancashire Pension Fund Committee noted the Investment Performance Report on 19/06/2026.
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Appointment of the Independent Person for Lancashire County Pension Fund
For DeterminationThe Pension Fund Committee decided to appoint Ms Marian George as the Independent Person for Lancashire County Pension Fund. This appointment is for a three-year term commencing on 1 July 2026.
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Minutes of the last meeting.
Recommendations ApprovedThe Pension Fund Committee of Lancashire Council decided to approve the Lancashire County Pension Fund Strategic Plan for 2026-29 and the Fund budget for 2026/27 on 19/06/2026. The committee also approved the LCPF Funding Strategy Statement and the Fund's updated Breaches Policy.
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Exclusion of Press and Public
Recommendations Approved -
Date of Next Meeting
Recommendations Approved -
Pension related training and revised Training Plan 2026/27
For DeterminationThe Lancashire Pension Fund Committee decided to approve the updated Training Plan for 2026/27. The committee reviewed training undertaken by members and received updates on the LGPS Online Learning Academy. The plan includes online self-learning modules, bespoke workshops, and external training opportunities.
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Lancashire County Pension Fund - Governance matters
For DeterminationThe Pension Fund Committee decided to note updates on risk management and governance for the Lancashire County Pension Fund on 19 June 2026. The committee considered the Fund's risk register, including updates on investment strategy, actuarial valuation, geopolitical risk, McCloud remedy, and local government reorganisation.
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Lancashire County Pension Fund 2025/26 Budget and Outturn
For DeterminationThe Pension Fund Committee considered and commented on the Lancashire County Pension Fund's 2025/26 budget outturn. The committee noted the financial results for the year ending 31 March 2026. The report included details on contributions received, transfers in and out, investment income, benefits payable, and administrative and investment management expenses.
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Pension Administration Performance Update
For DeterminationThe Pension Fund Committee decided to note the pension administration performance update for Quarter 4 2025/26. The committee considered information on service performance, project updates, and regulatory changes.
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Lancashire County Pension Fund - External Audit Plan 2026
For DeterminationThe Pension Fund Committee of Lancashire Council decided to consider and comment on the external audit plan for the Lancashire County Pension Fund for 2025/26. This decision was recorded on 19/06/2026. The audit plan outlines the programme of work for the external auditor, Grant Thornton, to provide an opinion on the financial statements.
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Investment Strategy Statement - Investment Beliefs
For DeterminationThe Lancashire Pension Fund Committee considered and commented on the Investment Strategy Statement, approving revised investment beliefs on 19 June 2026. The revised beliefs include a new focus on local investments, considering factors such as job creation and economic benefits alongside risk-adjusted returns.
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Responsible Investments Report
For DeterminationThe Pension Fund Committee decided to consider and comment on the Responsible Investments Report. The report outlines work undertaken by the Fund's pooling partner, Local Pensions Partnership Investments Limited, on responsible investment aspects. The committee reviewed activity covering January to March 2026, including climate transition, governance, and policy developments.
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Pensions Shareholder Governance Committee
For DeterminationThe Pension Fund Committee of Lancashire Council considered and commented on the establishment of a new Pension Shareholder Governance Committee. This committee was approved by Full Council on 21 May 2026. The new committee will undertake functions relating to the County Council's shareholding in pension-related companies.
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