The Pension Shareholder Governance Committee of Lancashire County Council met on Thursday, 30th July 2026. The committee discussed the constitution and terms of reference for the committee, reviewed the structure of Local Pensions Partnership Ltd (LPPL) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL), and considered a proposed £10 million dividend payment from LPPL. The committee also discussed the remuneration package for the LPPA Chief Executive for 2026/27.

Constitution, Membership and Terms of Reference

The committee noted the confirmed membership of the Pension Shareholder Governance Committee, comprising County Councillor I Duxbury, County Councillor G Mirfin, County Councillor J Tetlow from the Reform group, and County Councillor Prof. M Lavalette from the Progressive Lancashire group. The amended Terms of Reference for the committee were also noted and will be placed in the Minute Book for future reference. The appointment of a Deputy Chair was deferred to the next meeting, as it was suggested that County Councillor Tetlow was not present at this meeting.

Local Pensions Partnership Ltd and Local Pensions Partnership Investments Holdings Ltd

Pete George, Head of the Pension Fund, presented a report outlining the structure of Local Pensions Partnership Ltd (LPPL) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL). He informed the committee that he had been appointed as a Director on the Board of LPPI Holdings Ltd. Mr. George confirmed that any potential conflict of interest arising from his dual role as Head of Fund and Director was being managed through the establishment of the Pension Shareholder Governance Committee and the Pensions Company Directors Panel. The committee resolved to note the report on the structure of these companies.

Approval for the payment of £10m dividend from Local Pensions Partnership Ltd to shareholders

The committee approved the payment of a £10 million dividend from Local Pensions Partnership Ltd (LPPL) to its shareholders, subject to the receipt of tax advice confirming that the dividend will not result in any material adverse tax consequences for the Lancashire County Pension Fund. This dividend will be split equally, with £5 million going to Lancashire County Pension Fund and £5 million to the London Pensions Fund Authority. The payment is conditional on the receipt of tax advice and will be paid following the signing of LPPL's 2025/26 financial statements, which are scheduled for September 2026. The committee noted that professional advice was being sought regarding the tax-exempt status of the dividend.

LPPA Chief Executive 2026/27 Remuneration

The committee discussed the proposed remuneration package for the Chief Executive of Local Pensions Partnership Administration Ltd (LPPA) for the 2026/27 financial year. This package had previously been approved by the LPP Board and recommended to both shareholders for approval. The committee discussed the proposed basic remuneration and target bonus in detail. The proposed remuneration package was agreed by majority vote, with County Councillor M Lavalette requesting that his opposition to this decision be recorded in the minutes.

Date of Next Meeting

It is anticipated that the next meeting will be held in mid-October 2026, with a provisional date of 12th October. All committee members will be consulted on potential dates, and a final date will be agreed with the Chair. Officers will also prepare a programme of future meeting dates for 2026/27, taking into account the meeting schedules of the LPP Board and LPPIH Board, along with an associated work plan reflecting the committee's Terms of Reference.