The Pension Shareholder Governance Committee of Lancashire County Council is scheduled to convene on Thursday, 30 July 2026. The meeting's agenda includes discussions on the committee's constitution and terms of reference, as well as an update on Local Pensions Partnership Ltd and Local Pensions Partnership Investments Holdings Ltd. A key item for consideration is the approval for the payment of a dividend from Local Pensions Partnership Ltd to its shareholders.

Constitution, Membership and Terms of Reference

The committee is scheduled to review its constitution, membership, and terms of reference. This follows the establishment of the Pension Shareholder Governance Committee by Full Council on 21 May 2026, with the aim of providing a robust governance structure for shareholder decisions relating to pension-related companies. The committee's remit includes considering shareholder decisions for Local Pensions Partnership Ltd (LPPL) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL), and any subsidiaries, that are not reserved for Full Council. The report pack details that the committee will consider and comment on these aspects, as set out in the report. The membership of the committee, as previously noted by the Pension Fund Committee, includes County Councillors I Duxbury, G Mirfin, J Tetlow, and Professor M Lavalette.

Local Pensions Partnership Ltd and Local Pensions Partnership Investments Holdings Ltd

An update is scheduled regarding Local Pensions Partnership Ltd (LPPL) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL). These are two pension-related companies in which Lancashire County Council holds a part ownership. The report pack is expected to provide background information on these companies, their structure, and the council's shareholding. This information is intended to help committee members understand the companies and the remit of the Pension Shareholder Governance Committee, enabling them to make informed shareholder decisions. LPPIHL is described as having nine equal shareholders, including Lancashire County Council, and provides investment management services. LPPL, jointly owned by Lancashire County Council and the London Pensions Fund Authority (LPFA), provides pensions administration services.

Approval for the Payment of Dividend from Local Pensions Partnership Ltd

A significant item on the agenda is the consideration and approval for the payment of a £10 million dividend from Local Pensions Partnership Ltd (LPPL) to its shareholders. This dividend would be distributed as £5 million to the Lancashire County Pension Fund and £5 million to the London Pensions Fund Authority. The report indicates that the LPP Board has approved this dividend payment, subject to shareholder approval, following the signing of the 2025/26 financial statements. The dividend payment is linked to a previous demerger process where LPPI demerged from the LPP Ltd Group, and a £9 million dividend was paid by LPPI to LPP Ltd in March 2026. The proposed dividend aims to return funds to the existing shareholders. The committee is advised that professional tax advice is being sought to confirm that the proposed dividend will not result in any material adverse tax consequences for the Lancashire County Pension Fund.

LPPA Chief Executive 2026/27 Remuneration

A further item scheduled for discussion, which is noted as being potentially exempt from public disclosure, concerns the remuneration of the LPPA Chief Executive for the 2026/27 period. The report pack indicates that this item may involve the disclosure of exempt information under the Local Government Act 1972.