The Pension Shareholder Governance Committee of Lancashire County Council met on Thursday 30 July 2026 to discuss the establishment of the committee itself, and to review the structure and operations of Local Pensions Partnership Ltd and Local Pensions Partnership Investments Holdings Ltd. A key item on the agenda was the consideration and potential approval of a £10 million dividend payment from Local Pensions Partnership Ltd to its shareholders.

Constitution, Membership and Terms of Reference

The committee was scheduled to review the constitution, membership, and terms of reference for the newly established Pension Shareholder Governance Committee. This committee was created by Full Council on 21 May 2026 to specifically handle shareholder decisions related to pension-related companies, providing a more robust governance structure. The report presented outlined decisions previously made by Full Council and the Pension Fund Committee regarding the establishment and membership of this new committee. The terms of reference for the committee were detailed, outlining its purpose, composition, and the specific shareholder decisions it is empowered to make. These include decisions on dividends, strategic plans, governance frameworks, and the review of company effectiveness for any pension-related companies.

Local Pensions Partnership Ltd and Local Pensions Partnership Investments Holdings Ltd

The committee was provided with background information on two key pension-related companies in which Lancashire County Council holds a part ownership: Local Pensions Partnership Ltd (LPPL) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL). The report detailed the company structures, Lancashire County Council's shareholding in these entities, and a summary of each company's services. LPPIHL is owned by nine partner funds, including Lancashire County Council, and provides investment management services. LPPL, jointly owned by Lancashire County Council and the London Pensions Fund Authority (LPFA), offers pensions administration services. The committee was informed that these shareholder rights and responsibilities are distinct from the council's role as the administering authority for the Lancashire County Pension Fund.

Approval for the Payment of Dividend from Local Pensions Partnership Ltd

A significant item on the agenda was the proposal for the payment of a £10 million dividend from Local Pensions Partnership Ltd (LPPL) to its shareholders. This dividend would be split equally, with £5 million allocated to Lancashire County Pension Fund and £5 million to the London Pensions Fund Authority. The report explained that this dividend follows the demerger of LPPI from the LPP Ltd Group and the admission of new partner funds. It was noted that the LPP Board had approved the dividend payment, subject to shareholder approval and the signing of the 2025/26 financial statements in September 2026. The recommendation was for the committee to approve this dividend, subject to the receipt of tax advice confirming no material adverse tax consequences for the Lancashire County Pension Fund. The report also detailed the liquidity targets for LPPA and LPP Ltd, which collectively form an overall liquidity buffer of £3 million, considered appropriate for the group's financial obligations.

The committee was also scheduled to discuss the appointment of a Chair and Deputy Chair, and to consider any declarations of pecuniary and non-pecuniary interests. Additionally, an item regarding the remuneration of the LPPA Chief Executive for 2026/27 was listed, though details of this discussion would likely have been held in private session. The date of the next meeting was also to be agreed.