The Lancashire Local Pension Board met on Tuesday 27 January 2026 to discuss a range of pension-related matters. Key discussions included an update on the General Code of Practice - Annual compliance report.

General Code of Practice - Annual Compliance Report

The Board received an update on the Lancashire County Pension Fund's compliance with The Pension Regulator's General Code of Practice. Fund Officers assessed the Fund as remaining compliant with all mandatory modules of the Code. Key controls supporting this compliance include a well-established governance structure with regular meetings, a comprehensive training plan for Board and Committee members, and a regularly reviewed risk register. Upcoming activity includes a review and redrafting of the Conflicts of Interest policy to create a Fund-specific policy, and an update to the training strategy to meet new knowledge and understanding requirements for Committee members. The Fund also continues to monitor cyber security risks and seeks assurance from service providers. The Board noted the Fund's compliance.

LCPF Risk Register

The Board reviewed the Lancashire County Pension Fund's risk register, focusing on two key risks: I4 – Actuarial Valuation and Monitoring of Funding, and O2 – LCPF Reliance on Key Persons and Expertise. The risk rating for I4 remained unchanged, with current mitigation measures considered sufficient despite the ongoing discussions around the Funding Strategy Statement (FSS). The Committee requested further information on the impact of adjusting the funding buffer. For risk O2, the departure of the Finance Lead Officer and upcoming maternity leave were noted as posing a risk to the Pension Fund team's operations. An interim Finance Lead is to be recruited. The risk rating for O2 also remained unchanged, with current mitigation measures deemed sufficient. Other risks of note included those related to investment strategy, governance, cyber resilience, and the Pensions Dashboard.

LCPF Breaches & Complaints Report

The Board received an update on reported breaches and complaints for the period of September to November 2025, and a review of the Fund's Breaches policy. The number of contribution incidents had increased due to a change in the remittance submission process for employers, though Fund Officers are working to address this. No data or administration breaches were deemed materially significant to The Pensions Regulator (tPR) or the Information Commissioner's Office (ICO). The LPPA Complaints Board report for July-August 2025 identified key themes of Delays, Communications, and Data, with actions being taken to address these across all LPPA clients, which are expected to benefit the Fund. A complaint from an Independent Financial Advisor regarding the transfer process was also discussed, with LPPA implementing enhanced training and strengthening case ownership. The Fund's Breaches policy has undergone a minor review, with updates to formatting, references, legal requirements, and roles and responsibilities. A revised protocol with LPPA was agreed to ensure prompt and transparent communication of breaches.

Pension Administration Update

The Board received an update on pension administration matters, including Service Level Agreement (SLA) performance data and member experience data for active retirements. Overall SLA performance remained high, consistently above 98%. However, the report highlighted challenges in achieving the 30-day target for first pension payments, particularly for members with Additional Voluntary Contributions (AVCs), and where employers provided late retirement notifications. LPPA has launched an improved online leaver notification form and an online options form for members to streamline processes. Planning is underway to automate active retirement payments. The report also covered disclosure reporting, communications activity, and progress on the McCloud remedy and Pensions Dashboard projects.

Pensions Dashboard

An update was provided on the progress of connecting the Lancashire County Pension Fund to the government's Pensions Dashboard. Following a delay due to an issue identified during penetration testing, the Fund successfully connected to the Pensions Dashboard on 15 December 2025. The next phase of the project will focus on data quality and readiness, with LPPA providing quarterly reports on data accuracy. Annual Benefit Statements (ABS) are providing a solid foundation for the data published on the dashboard. LPPA is working to improve data quality through system enhancements and a proposed tracing exercise for member addresses. The Board noted the report and that Fund Officers will continue to monitor progress.

Regulatory Update

The Board received an update on various pension-related regulatory issues. This included information on the 'Fit for the Future' consultation, which aims to implement pooling and local investment proposals and enhance governance within the Local Government Pension Scheme (LGPS). The consultation sought views on draft statutory instruments concerning pooling, management, and investment of funds, as well as amendments to existing regulations. The report noted that Local Pensions Partnership Investments Ltd (LPPI), the Fund's pooling partner, is compliant with the revised regulations. Updates were also provided on changes related to the Autumn Budget 2025, including the retention of the Triple-Lock and changes to Inheritance Tax on pensions. Consultations on scheme improvements, including the Normal Minimum Pension Age, access for elected members, and new fair deal policies, were also discussed.

Pension related training for Board members

The Board noted the training undertaken by its members since the last meeting. This included participation in the LGPS Advisory Board Annual Assembly, an LCPF Investment Strategy workshop, and various online LOLA (LGPS Online Learning Academy) modules. The report highlighted that all core LOLA modules had been completed by several Board members. The Fund's Training Plan for the remainder of the year was also presented, outlining upcoming internal and external training opportunities.

Lancashire County Pension Fund - Communications Strategy update

An update was provided on the review of the Fund's Communications Strategy. Fund Officers have been working with LPPA to improve communication with members who may be unable or unwilling to engage online, including exploring the cost of a postal exercise. LPPA continues to focus on a 'digital first' approach, but the report recommended a postal exercise targeting deferred members to encourage online portal registration, at an indicative cost of £27,570. The Board was invited to comment on this proposal. Discussions also covered potential website refreshes and the use of third-party providers.

Pensions Administration Strategy Statement Review

The Board was updated on the review of the Pensions Administration Strategy Statement (PASS). A draft of the updated PASS was presented, with key changes including a refined introduction, a new section on purpose and objectives, and updated responsibilities for the Fund, LPPA, and Scheme employers. The revised PASS will be subject to an eight-week consultation with employers before being submitted to the Pension Fund Committee for approval.

Part I reports on the Pension Fund Committee agenda

The Board received an update on Part I reports considered by the Pension Fund Committee on 12 December 2025. These included the Budget Monitoring 2025/26 Q2 and the Responsible Investments Report. The Head of Fund was expected to provide further updates on decisions taken by the Committee regarding these items.

Programme of Meetings 2026/27

The Board was invited to note the proposed programme of meetings for 2026/27. The suggested dates, all to be held in Committee Room 'B' - The Diamond Jubilee Room at County Hall, Preston, starting at 2.00pm, were: Wednesday 15 July 2026, Tuesday 20 October 2026, Tuesday 26 January 2027, and Tuesday 13 April 2027. The proposed programme follows a similar pattern to previous years to aid planning and minimise potential non-attendance.