The Lancashire Local Pension Board met on Tuesday, 27 January 2026, to discuss a range of pension-related matters. Key topics included updates on regulatory changes affecting the Local Government Pension Scheme (LGPS), the performance of pension administration services, and the ongoing development of the Pensions Dashboard. The Board also reviewed the Fund's risk register and considered a draft update to the Breaches Policy.

Regulatory Update

The Board received an update on various regulatory changes impacting the LGPS. These included proposals from the Fit for the Future consultation, which aims to implement pooling and local investment strategies, and enhance governance within the LGPS in England and Wales. The draft regulations, expected to replace existing ones from April 2026, will require LGPS pools to be authorised by the Financial Conduct Authority (FCA) and will mandate that administering authorities delegate investment strategy implementation to their LGPS pool. The report noted that Local Pensions Partnership Investments Ltd (LPPI), the Fund's pooling partner, is compliant with these revised regulations.

Further updates covered changes announced in the Autumn Budget 2025, including the retention of the Triple-Lock for the State Pension and changes to Inheritance Tax on pensions from April 2027. A consultation on Scheme Improvements (Access & Protections) was also discussed, proposing an increase in the Normal Minimum Pension Age from 55 to 57 from April 2028, with protections for those in the LGPS before November 2021. The consultation also addressed allowing councillors and mayors to join the LGPS, enabling academies to consolidate their participation in the LGPS into a single pension fund, and ensuring local government workers moved to new employers due to outsourcing can remain in the LGPS under a New Fair Deal policy.

The Board was also informed about the Virgin Media Court of Appeal judgement, which has implications for defined benefit schemes contracted out of the state pension between 1997 and 2016. Amendments to the Pension Schemes Bill 2025 are expected to address this issue.

Pension Administration Update

An update on the performance of Local Pensions Partnership Administration Ltd (LPPA) was presented, showing an overall Service Level Agreement (SLA) performance of 98.2% for the quarter from July to September 2025. While contact centre wait times remained under the target of four minutes on average, there was a spike in October due to staff sickness, which impacted performance metrics.

A particular focus was placed on the retirement process, with 70.3% of retirement notifications received from employers at least 30 days before the member's retirement date. This timeliness is crucial for ensuring first pension payments are made within 30 days. The report highlighted that processing pensions for members with Additional Voluntary Contributions (AVCs) takes longer due to the additional step of disinvesting the AVC. LPPA has launched a new online leaver notification form to simplify the process for employers and reduce queries, and is planning to automate active retirement payments.

Disclosure reporting for October to December 2025 was also reviewed. While LPPA aims for high compliance, the report noted that disclosure reporting measures elapsed time, which involves factors beyond LPPA's control, such as employer and member responsiveness. Some metrics, like transfer-in quotes and deferred benefit notifications, showed lower percentages due to reliance on third-party responses and employer timeliness.

Pensions Dashboard

The Board received an update on the Lancashire County Pension Fund's connection to the Pensions Dashboard. Following a delay due to an issue with the Integrated Service Provider's connection testing, the Fund successfully connected to the Pensions Dashboard on 15 December 2025. Prudential also connected on the same date. The next phase of the project will focus on data quality and readiness, with over 93% of members currently considered dashboard ready. LPPA is working to improve data accuracy and is planning a tracing exercise to verify member addresses. The report also clarified that illustration dates for defined benefit and defined contribution AVC benefits can differ, as they are considered separate benefits.

LCPF Risk Register

The Board reviewed key risks within the Lancashire County Pension Fund's risk register. Risk I4, concerning the Actuarial Valuation and Monitoring of Funding, was discussed. While the 2025 valuation shows a strong funding position, the need to balance contribution affordability for employers with future liability risks remains. The Pension Fund Committee deferred a decision on the Funding Strategy Statement in December 2025, requesting further information, and an additional committee meeting was scheduled for January 2026 to address this. The report noted that current mitigation measures for this risk are considered sufficient.

Risk O2, relating to LCPF Reliance on Key Persons and Expertise, was also reviewed. The departure of the Finance Lead Officer and upcoming maternity leave within the finance team pose a risk to the Pension Fund team's operations. An interim Finance Lead is to be recruited. Mitigation measures, including training and the involvement of Independent Investment Advisers, were deemed sufficient, and the risk rating remains unchanged. Other risks of note included those related to investment strategy, governance, cyber resilience, and the Pensions Dashboard.

LCPF Breaches & Complaints Report

The Board was presented with the latest quarterly report on breaches and complaints for the period September to November 2025. The number of contribution incidents has increased due to a change in the remittance submission system for employers, though Fund Officers are working to address this. No data or administration breaches were deemed materially significant to the Information Commissioner's Office (ICO) or The Pensions Regulator (TPR). The report also detailed a complaint from an Independent Financial Advisor regarding LPPA's management of transfers, communication, and delays. LPPA has acknowledged these issues and is implementing enhanced training, strengthening case ownership, and restructuring the transfer team.

A review of the Fund's Breaches Policy was also presented, with minor updates proposed, including formatting changes, updated legal references, and clearer definitions for contribution breaches. A revised protocol with LPPA was agreed to ensure prompt and transparent communication of breaches.

General Code of Practice - Annual Compliance Report

The Board received an annual update on the Lancashire County Pension Fund's compliance with The Pensions Regulator's General Code of Practice. Fund Officers assessed the Fund as continuing to comply with all mandatory modules. Key controls supporting this compliance include a well-established governance structure, a training plan for Board and Committee members, a live risk register, and regular reviews of administration and governance controls by internal and external auditors. Upcoming activity includes a review of the Conflicts of Interest policy, updates to the training strategy in light of new Fit for the Future requirements, and ongoing work to ensure cyber security.

Part I Reports on the Pension Fund Committee Agenda

The Board was updated on Part I items considered by the Pension Fund Committee on 12 December 2025. This included updates on Budget Monitoring 2025/26 Q2 and the Responsible Investments Report. The Head of Fund was to provide further specific details on decisions made by the Committee regarding these items.

Programme of Meetings 2026/27

The Board was asked to approve the proposed programme of meetings for 2026/27. The suggested dates, all to be held at County Hall, Preston, starting at 2.00 pm, are: Wednesday 15 July 2026, Tuesday 20 October 2026, Tuesday 26 January 2027, and Tuesday 13 April 2027.