The Lancashire Local Pension Board met on Tuesday 14 April 2026 to discuss a range of important matters concerning the Lancashire County Pension Fund. Key topics included updates on regulatory changes impacting pension schemes, a review of the fund's risk register, and progress on the development of a peer support programme for Local Government Pension Scheme (LGPS) funds. The board reviewed its annual work plan for 2026/27 and received updates on pensions administration performance and the upcoming Pensions Dashboard.

Regulatory Update

The board received an update on several regulatory changes affecting public service pensions. From April 2026, pensions will see a 3.8% increase, with member contribution bands also rising by the same rate. Significant changes are being introduced under the Access and Fairness consultation, including the equalisation of survivor benefits, the removal of the age 75 cap for death grants, and adjustments to address the gender pensions gap. These changes, with some backdated elements, will be implemented in phases, with Phase 1 effective from April 2026. Information on these material changes must be provided to members by 30 June. A further consultation on Access and Protections will see councillors, mayors, and deputy mayors in England able to opt into the LGPS from 11 May 2026. The board was informed that the volume and complexity of these changes, alongside other ongoing projects like the McCloud remedy and Pensions Dashboard preparations, present significant challenges for Local Pensions Partnership Administration Ltd (LPPA).

Pensions Administration Update

The board reviewed the administration performance of LPPA for the quarter ending 31 December 2025, noting that overall Service Level Agreement (SLA) performance was 99.1%. The average call wait time was below the target of four minutes, and abandoned calls remained within the target. However, there was a noted increase in pressure on the contact centre in the months of March and April 2026, which is being addressed. The report highlighted that the timeliness of retirement payments is significantly impacted by the notice period provided by employers, with only 21.4% of retirements involving Additional Voluntary Contributions (AVCs) being paid within 30 days when LPPA received less than 30 days' notice. Efforts are ongoing to encourage employers to provide timely notifications. The board also received an update on the Collaborative Pensions Optimisation Project (CPOP), which has concluded and led to improvements in data flow, staff guidance, and system functionality related to retirements. Progress on the McCloud remedy was also discussed, with LPPA aiming for 95% of eligible members to have the underpin on their annual benefit statements.

LCPF Risk Register

The board reviewed the Lancashire County Pension Fund's risk register, highlighting several key areas. The risk associated with the actuarial valuation and monitoring of funding has been reduced from Medium to Low following the finalisation of the valuation and the implementation of measures to ensure stable contribution rates. Geopolitical risks, particularly in light of events in the Middle East, were discussed, with officers noting that while markets have been volatile, the fund's diversified portfolio is designed to be defensive. A new risk, T8 – Local Government Reorganisation (LGR), has been added to the register to monitor preparations for the upcoming structural changes and their potential impact on the fund. Other risks noted included reliance on key personnel and expertise within the fund and its administrators, and cyber resilience and information security.

Scheme Advisory Board - Peer Support Project

Representatives from the Scheme Advisory Board (SAB) presented an update on their peer support project, which aims to facilitate learning and the sharing of best practice among LGPS funds. This initiative is distinct from the Independent Governance Review and is designed to be a supportive process where experienced peers offer challenge and guidance. The project is developing a framework with five key themes and is planning pilot events. The board was encouraged to consider how their fund might participate in or contribute to this network of peers.

Pensions Dashboard

An update was provided on the progress towards the government's Pensions Dashboard, with Lancashire County Pension Fund having connected to the system in December 2025. LPPA is working to ensure data accuracy, with over 93% of members currently considered dashboard ready. A tracing exercise will be undertaken to verify addresses for deferred members over 52. The board was informed that the public launch date is yet to be confirmed, but schemes will be expected to provide daily reporting data from November 2026.

Pension Fund Committee 20 March 2026 Agenda Review

The board received an update on the key items discussed at the Pension Fund Committee meeting on 20 March 2026. These included the approval of the LCPF Strategic Plan 2026-29 and Budget 2026/27, an update on the Fit for the Future programme, and a review of the Funding Strategy Statement. The board was also informed about structural changes within Local Pensions Partnership Ltd to facilitate the expansion of the investment pool.

Pension Related Training, 2025/26 Training Record and Training Plan 2026/27

The board reviewed its training record for 2025/26 and noted the training plan for 2026/27. The plan includes participation in the Hymans Robertson annual knowledge assessment exercise to evidence compliance with new knowledge and understanding requirements. Discussions also covered the refresh of the LOLA online training platform and the need for clearer reporting on module completion.

Lancashire Local Pension Board Annual Workplan 2026/27

The board reviewed its annual work plan for 2026/27, which outlines the proposed areas of focus and activity for the upcoming financial year. The plan is designed to ensure the board continues to fulfil its statutory remit and supports the administering authority in maintaining compliance with LGPS regulations. A new element for this year is the inclusion of a fund-specific conflict of interest policy for review.

Lancashire County Pension Fund - Governance Matters

This report provided an update on governance and risk management issues for the fund. An internal audit of LPPA's change management processes for automation found reasonable control measures but highlighted areas for improvement in documentation. External audit of the 2024/25 accounts was completed with no significant issues, though a recommendation was made to ensure protocols are in place for timely processing of member changes. Two non-reportable breaches were noted: a data breach involving information sent in error to Warrington Borough Council, and an overpayment due to a manual calculation error. The report also detailed progress on implementing governance requirements arising from the Fit for the Future programme, including training, the appointment of a Senior LGPS Officer, and steps to appoint an Independent Person to the Pension Fund Committee. Preparations for Local Government Reorganisation (LGR) were also discussed, with work underway to consider its implications for the fund's governance, administration, and investments.

Local Government Reorganisation (LGR)

Officers provided an update on the ongoing Local Government Reorganisation (LGR) project. With less than two years until the vesting date, regular meetings are being held to assess the implications for the pension fund, its employers, and scheme members. A report outlining potential structural options for the fund is being prepared. While investments are expected to be less affected, governance and administration are anticipated to require significant work. The team has experience from previous LGRs, and collaboration with LPPA is underway. The board was advised that Lancashire is currently comprised of 15 councils, and proposals for restructuring have been submitted to the government, with an outcome expected in July. The subsequent phases involve consultation, the creation of shadow authorities from May 2027, and the formal vesting of new councils in May 2028. The importance of stability and scale in pension fund management was emphasised in the context of these changes.