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Pension Fund Committee - Friday, 12th December, 2025 10.30 am
December 12, 2025 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 County Council met on Friday, 12th December 2025, to discuss pension-related training, budget monitoring, responsible investments, and the update on the Funding Strategy Statement consultation. Key decisions included the deferral of the Funding Strategy Statement decision to a January meeting to allow for further analysis of contribution rate options, and the approval of the Local Pensions Partnership Annual Report and Accounts for 2024/25.
Pension Related Training for Committee Members
The committee received an update on the pension-related training undertaken by its members since the September meeting. This included induction training for the Chair, Councillor Mr Joel Michael Tetlow, attendance at the Pensions UK conference by several councillors, and participation in various LOLA online training modules and bespoke workshops covering governance, administration, accounting, investment performance, and actuarial methods. The report highlighted that all committee members are expected to have appropriate knowledge and understanding, with the LOLA training serving as a basic level of competency.
Budget Monitoring 2025/26 - Q2
The committee reviewed the Pension Fund's income and expenditure for the first six months of the financial year ending 30 September 2025. Overall, the forecast expenditure remained broadly in line with the budget, with some variances attributed to factors outside the fund's direct control, such as transfers in
from other pension funds. The report noted that the fund was forecast to be £87 million cash flow negative by the end of the year, a position that is not considered of undue concern for a pension fund and is managed through the investment strategy. The committee was asked to review and note these financial results.
Responsible Investments Report
This report detailed the work undertaken by the fund's pooling partner, Local Pensions Partnership Investments Limited (LPPI), on responsible investment. It confirmed that the Lancashire County Pension Fund has not made a specific Net Zero commitment, although LPPI is working towards aligning its investment portfolio with net zero emissions by 2050. The report emphasised that all investment decisions are driven by commercial principles and risk-adjusted returns, fulfilling the fund's fiduciary duty. The committee noted the report and provided comments.
Update on Funding Strategy Statement Consultation
A significant portion of the meeting was dedicated to discussing the update on the Funding Strategy Statement (FSS) consultation. The report presented feedback from scheme employers regarding the key parameters used to determine employer pension contribution rates for 2026-2029. While the majority of employers were satisfied with the proposed parameters, which would lead to a significant reduction in average employer contribution rates from 17.1% to a provisional 10.8%, a minority, primarily councils and academies, requested further reductions.
After extensive debate, the committee voted to defer the decision on approving the key parameters of the Funding Strategy Statement. This deferral was agreed to allow for further analysis and the provision of additional advice from the actuary. A special meeting is to be arranged in January 2026 to consider a range of options for contribution rates, including figures between 110% and 120% of the funding buffer, alongside updated financial market information. This decision was made to ensure members have sufficient information to make an informed decision, balancing fiduciary duty with the immediate budgetary needs of employers.
Local Pensions Partnership Annual Report and Accounts 2024/25
The committee received and commented on the Local Pensions Partnership (LPP) Annual Report and Accounts for the year ending 31 March 2025. The report indicated that LPP, encompassing both LPPI and LPPA, made an operating profit of £0.6 million. The financial performance was broadly in line with expectations. The committee approved the report.
Date of Next Meeting and 2026/27 Programme of Meetings
The committee noted the date of the next scheduled meeting on 20 March 2026. They also approved the 2026/27 programme of meetings, with dates set for 19 June 2026, 18 September 2026, 11 December 2026, and 19 March 2027.
Exclusion of Press and Public
The committee considered and approved the exclusion of the press and public from the meeting for the consideration of specific agenda items, citing the likely disclosure of exempt information.
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 related training for Committee members
For Determination...reviewed the pension-related training undertaken by Committee members since the last meeting and provided feedback.
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Investments In Occupied Territories (Israel)
Recommendations Approved...to approve recommendations regarding investments in occupied territories following a prior request.
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Minutes of the last meeting.
Recommendations Approved...agreed in principle to the admission of new partner funds to LPPI and recommended to Full Council in March 2026 to approve the expansion of the pool by admitting new partner funds, subject to satisfactory due diligence.
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Investment Panel Update
Recommendations Approved...to approve the recommendations presented in an update on the Investment Panel's business from their September and October 2025 meetings.
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Appointment of an Independent Investment Adviser to the Pension Fund
Recommendations Approved...to approve the recommendation for the appointment of an independent Investment Adviser to the Pension Fund, as Ms Marian George's contract was nearing its end.
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Dates for the next three meetings.
Recommendations Approved -
Update on the LCPF Strategic Plan 2025/26
Recommendations Approved...to approve the recommendations for the in-year progress update on the LCPF Strategic Plan 2025/26.
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Local Pensions Partnership - Shareholder Update
Recommendations Approved...to approve the recommendations presented in the quarterly shareholder update from the Local Pensions Partnership (LPP) Group Company.
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Exclusion of Press and Public
Recommendations Approved -
Risk Register
Recommendations Approved...to approve the significant updates to the Fund's risk register.
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Local Pensions Partnership Administration Update
Recommendations Approved...to approve the recommendations presented in the update on administration services delivered by Local Pensions Partnership Administration Limited (LPPA) for Quarter 2 of 2025.
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Local Pensions Partnership Annual Report and Accounts 2024/25
Recommendations Approved...approved the Local Pensions Partnership Annual Report and Accounts for 2024/25.
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Responsible Investments Report
Recommendations Approved...approved the recommendations within the Responsible Investments Report, which outlined the work undertaken by the Fund's pooling partner, Local Pensions Partnership Investments Limited (LPPI), on responsible investment aspects for the period July to September 2025.
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2026/27 Programme of Meetings
Recommendations Approved -
Welcome and Apologies
Recommendations Approved -
Investment Performance Update Report
Recommendations Approved...to approve the recommendations presented in the Investment Performance Update Report, which provided an overview of investment matters, key themes, and the macro-economic outlook with headline performance.
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