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Pension Fund Committee - Friday, 18 September 2026 - 10.00 am
September 18, 2026 at 10:00 am Pension Fund Committee View on council website Watch video of meeting Read transcript (Professional subscription required)Summary
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The Pension Fund Committee of Lancashire Council met on Friday 18 September 2026 to discuss a range of governance, investment, and administration matters. Key decisions included the approval of the draft Investment Strategy Statement for consultation, the adoption of a new Conflicts of Interest Policy, and the approval of the Pension Administration Strategy Statement.
Lancashire County Pension Fund Governance Matters
The committee received an update on various governance issues, including progress on Fit for the Future
reforms, updates to the risk register, and member training. The Communications Policy and the Governance Compliance Statement were approved. An update on the risk register was noted, with specific attention given to the Local Government Reorganisation (LGR) risk, which will be updated for the next meeting following recent government announcements. The committee was also informed about a breach relating to the failed payment of employee contributions by an employer that subsequently entered administration, which was deemed not materially significant.
Lancashire County Pension Fund Conflicts of Interest Policy
A new fund-specific Conflicts of Interest Policy was presented and approved. This policy is a requirement of the Fit for the Future
reforms and outlines how actual, potential, and perceived conflicts of interest will be identified, monitored, and managed. The policy applies to committee members, officers, advisers, and service providers. It was noted that this policy is in addition to the existing Lancashire County Council Code of Member Conduct.
Audit Assurance 2025/26
The committee received a summary of the internal audit work undertaken for the Pension Fund during the 2025/26 financial year and the plans for 2026/27. The internal audit of the Pension System Automation Change Management received reasonable assurance,
with minor recommendations for improvement. The General Ledger review received substantial assurance,
indicating effective controls. External assurance reports from KPMG for LPPA and LPPI also provided reasonable assurance
that controls are effective within those organisations. Planned audits for the current year include the Contributions Management System, Risk Management, and Pensions Treasury Management.
Independent Governance Review
The committee supported the commencement of an Independent Governance Review (IGR) for the Fund, scheduled for the first quarter of 2027/28. This review is a regulatory requirement under the Fit for the Future
reforms and will assess the overall effectiveness of the Fund's governance, committee, and local pension board, as well as considering risk management and compliance with regulations. Officers will procure an appropriate assessor for this review.
Investment Strategy Statement
This was considered the most significant item on the agenda. The committee approved the draft Investment Strategy Statement (ISS) for consultation. Key highlights include an aim to increase local investment in Lancashire from approximately 1.2% (£150 million) to 3% (£400 million) of the portfolio. The strategy also allows for a concession to risk or return considerations for investments that deliver enhanced economic and social benefits to Lancashire. The committee approved the proposed Strategic Asset Allocation (SAA), which aims to balance contribution affordability and stability. The SAA includes an increase in Global Equities to 45% and a decrease in Private Credit and Liquid Credit. Following consultation, a further report will be presented in December with any necessary adjustments.
Lancashire County Pension Fund Annual Report 2025/26
The draft Annual Report and Accounts for 2025/26 were approved for publication. The report details the Fund's work on governance, administration, investments, and financial performance. Key headlines include an increase in membership to 205,577, investment assets under management rising to £12.3 billion, a healthy funding level of 132%, and a reduction in average employer contribution rates to 9.1%. The report also highlights estimated fee savings of £22.9 million due to pooling arrangements. The Annual Report from the Local Pension Board, outlining its activities, was also approved for inclusion.
Responsible Investments Report
This report focused on the stewardship activity, ESG matters, and shareholder engagement undertaken on behalf of the Fund during the reporting period (April to June 2026). LPPI voted at 164 shareholder meetings on over 2,300 resolutions. Votes against management often related to issues such as misaligned performance and pay, and a perceived lack of independent challenge on boards. The report noted that investments in Brown
sectors (fossil fuels) decreased slightly to 2.18% of the portfolio, while Green
sector investments remained at 4.03%. The report also highlighted engagement activities, shareholder voting statistics, and case studies on real-world outcomes in Real Estate and Infrastructure investments. Going forward, this will become an annual committee report with quarterly updates published on the Fund's website.
Pensions Administration Strategy Statement Review
The committee approved the revised Pension Administration Strategy Statement (PASS). This document defines the roles and responsibilities of the Fund, LPPA, and scheme employers in administering the LGPS, setting quality and performance standards, and outlining monitoring procedures. The review involved consultation with the Local Pension Board and scheme employers, with no substantive issues raised.
Pension Administration Performance Update
An update on LPPA's performance for the quarter ending 30 June 2026 was presented. Overall casework performance exceeded the 95% SLA target, achieving 98.9%. A key metric regarding first pension payments within 30 days of retirement showed improvement, with 84.1% of notifications received on time from employers. Project updates included progress on the Pensions Dashboard, McCloud Remedy implementation, and changes related to the SCAPE discount rate. The committee agreed that the high percentage of Annual Benefit Statements issued (96.3% for active members and 99.4% for deferred members) did not constitute a material breach requiring reporting to the Pensions Regulator.
Urgent Business
No urgent business was raised.
Date of Next Meeting
The next meeting was scheduled for Friday 11 December 2026.
Exclusion of Press and Public
The committee agreed to exclude the press and public from the remaining items of business.
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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Pension Administration Performance Update
For DeterminationThe Pension Fund Committee of Lancashire Council decided to note the pension administration performance update on 18 September 2026. The committee agreed that it was not necessary to report the situation regarding annual benefit statements to the Pensions Regulator. This decision was made because the percentage of statements produced was high and the impact of any omissions was minimal.
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Independent Governance Review
For DeterminationThe Pension Fund Committee of Lancashire Council decided to approve an Independent Governance Review of the Lancashire County Pension Fund in Q1 of 2027/28. Officers will procure an assessor to carry out this review.
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Investment Panel - Update
Recommendations ApprovedThe Pension Fund Committee of Lancashire Council noted an update report on items considered at the Investment Panel on 18 June 2026. The decision was made on 18 September 2026.
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Exclusion of Press and Public
Recommendations Approved -
Audit Assurance 2025/26
For DeterminationThe Lancashire Pension Fund Committee considered and commented on the report summarising internal audit assurance work for the Pension Fund during 2025/26 and planned for 2026/27. The committee was asked to consider and comment on the report on 18 September 2026. Management agreed to actions to enhance change control processes and provide greater assurance that system changes are tested prior to implementation.
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Lancashire County Pension Fund Annual Report 2025/26
For DeterminationThe Pension Fund Committee of Lancashire Council decided to approve the draft Lancashire County Pension Fund Annual Report and Accounts for 2025/26 on 18 September 2026. They also approved the Annual Report from the Lancashire Local Pension Board for inclusion in the Fund's Annual Report. The decision included approval of the draft report subject to the inclusion of the external audit opinion and any accounting updates agreed by the Head of Fund.
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Minutes of the last meeting.
Recommendations ApprovedThe Pension Fund Committee of Lancashire Council noted the constitution and membership of the committee on 19 June 2026. They also noted amended Terms of Reference for the committee.
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Lancashire County Pension Fund - Governance matters
For DeterminationThe Pension Fund Committee decided to approve the Fund's Communications Policy and the Governance Compliance Statement. They also noted updates to the Fund's risk register.
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Lancashire County Pension Fund - Conflicts of Interest Policy
For DeterminationThe Pension Fund Committee decided to approve the draft Conflicts of Interests policy for the Lancashire County Pension Fund on 18 September 2026. The policy sets out how actual, potential, and perceived conflicts of interest are identified, monitored, and managed. Officers will consult with Democratic Services on declaring interests and gifts, and maintain a register of conflicts and gifts.
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Investment Strategy Statement
For DeterminationThe Pension Fund Committee decided to approve the draft Investment Strategy Statement and determine the Strategic Asset Allocation on 18 September 2026. The committee agreed to a target of 3% for local investments with a tolerance range of 0-4%, and a revised Strategic Asset Allocation including an increase in Global Equities and UK Government Bonds.
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Pensions Administration Strategy Statement Review
For DeterminationThe Pension Fund Committee of Lancashire Council approved the Pension Administration Strategy Statement on 18 September 2026. The statement defines roles and responsibilities for the fund, its scheme employers, and Local Pensions Partnership Administration. It also sets out quality and performance standards and procedures for monitoring compliance.
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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 of the Lancashire County Pension Fund's investment activity. The committee will receive an annual report on stewardship activity going forward.
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Investment Implementation - Due Diligence Meeting focused on Global Equity Performance
Recommendations ApprovedThe Pension Fund Committee of Lancashire Council approved recommendations on 18/09/2026. The Investment Panel reviewed the LPPI Global Equity Performance.
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