The Lancashire Local Pension Board met on Tuesday, 27 January 2026, to discuss a range of updates and reports concerning the Lancashire County Pension Fund. Key topics included regulatory updates, the progress of the Pensions Administration Strategy, and the ongoing work related to the Pensions Dashboard. Decisions were made regarding the approval of the 2026/27 meeting programme and the noted content of various reports.

Regulatory Update

The Board received an update on various regulatory matters impacting the Local Government Pension Scheme (LGPS). This included information on the Fit for the Future consultation, which aims to implement pooling and local investment proposals, and enhance governance within the LGPS in England and Wales. The consultation covers draft statutory instruments concerning the pooling, management, and investment of funds, as well as amendments to existing regulations. The final regulations are expected to take effect from 1 April 2026. The report also highlighted changes announced in the Autumn Budget 2025, including the retention of the Triple-Lock for the State Pension and changes to National Insurance contributions for salary sacrifice arrangements above £2,000 from April 2029. Furthermore, proposed legislation will bring unused pension funds and death benefits into an individual's estate for Inheritance Tax purposes from April 2027. A consultation on Scheme Improvements, covering the Normal Minimum Pension Age increase to 57 from April 2028, access for elected members, academies, and the New Fair Deal for outsourced workers, was also discussed.

Pensions Administration Strategy

An update was provided on the review of the Pensions Administration Strategy Statement (PASS). The revised PASS aims to clearly define the roles and responsibilities of the Lancashire County Pension Fund, Local Pensions Partnership Administration (LPPA), and Scheme employers, setting out expected quality and performance standards. Key changes include a refined introduction, separate sections for purpose and objectives, and updated performance targets and service level agreements (SLAs) to align with LPPA. The draft PASS will be subject to an eight-week consultation with employers before final submission to the Pension Fund Committee for approval.

Pensions Dashboard

The Board received an update on the progress of connecting the Lancashire County Pension Fund to the government's Pensions Dashboard. While the Fund's connection was initially delayed due to an issue with the Integrated Service Provider, LPPA confirmed that the connection was successfully established 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. Over 93% of members are reported as dashboard ready, and efforts are underway to improve the remaining data. The report also clarified that illustration dates for defined benefit and defined contribution AVC benefits do not need to align, as they are considered separate benefits.

Local Pension Partnership Administration (LPPA) Update

A comprehensive update was provided on LPPA's performance and ongoing projects. Overall casework performance against Service Level Agreements (SLAs) for the quarter ending 30 September 2025 was 98.2%. Contact Centre wait times remained below the target of 4 minutes, with an average of 3 minutes and 35 seconds. However, October 2025 saw a dip in performance due to high staff absence and an increase in calls. The report highlighted that 70.3% of retirement notifications were received at least 30 days before the member's retirement date, an improvement from the previous quarter. LPPA has launched a new online leaver notification form to streamline the process for employers and is planning to automate active retirement payments. The report also detailed progress on the McCloud remedy, with LPPA reporting good progress in delivering underpin calculations and payments.

Funding Strategy Statement Consultation

An update was provided on the 2025 Valuation Project and the Funding Strategy Statement (FSS) consultation. The valuation results indicated a strong funding position of 134%, leading to a provisional reduction in average employer contributions from 17.1% to 10.8%. The consultation with employers revealed general acceptance, though some councils and academy trusts requested larger reductions. The Pension Fund Committee deferred a decision on key FSS parameters in December 2025, requesting further information on contribution rate options, financial market updates, and other LGPS Funds' strategies. An additional committee meeting was scheduled for 23 January 2026 to finalise these decisions.

Risk Register

The Board reviewed updates to the LCPF Risk Register. Two key risks were highlighted: I4 – Actuarial Valuation and Monitoring of Funding and O2 – LCPF Reliance on Key Persons and Expertise. The funding risk remains unchanged, with ongoing efforts to balance employer affordability and future liability risks, including further analysis on the impact of adjusting the funding buffer. The risk related to reliance on key personnel also remains unchanged, with interim recruitment plans in place following the departure of the Finance Lead Officer and upcoming maternity leave. Other risks of note included those related to investment strategy, governance, cyber resilience, and the Pensions Dashboard.

Breaches and Complaints Report

The Board received an update on reported breaches and complaints for the period 1 September 2025 to 30 November 2025. While the number of contribution incidents has increased due to a change in submission processes, no breaches were reported to the Pensions Regulator or Information Commissioner's Office. The LPPA Complaints Board report for Q2 2025 identified key themes of Delays, Communications, and Data. Actions are being taken to address these, including improved employer engagement and earlier intervention. An Independent Financial Advisor (IFA) complaint regarding transfer processes was also discussed, with LPPA outlining actions to enhance training, strengthen case ownership, and restructure the transfer team. The Fund's Breaches policy was reviewed, with minor updates proposed, including clarity on contribution breach definitions and revised roles and responsibilities for reporting.

General Code of Practice - Annual Compliance Report

Fund Officers assessed the Lancashire County Pension Fund as continuing to comply with the Pension Regulator's General Code of Practice. Key controls supporting this compliance include a well-established governance structure, a comprehensive training plan, a regularly reviewed risk register, and independent assurance reports from LPPA and LPPI. Upcoming activity includes a review of the Conflicts of Interest policy, updates to the training strategy to meet new knowledge and understanding requirements, and ongoing work on cyber controls and investment monitoring.

Part I Reports on the Pension Fund Committee Agenda

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

Programme of Meetings 2026/27

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