The Lancashire Local Pension Board met on Tuesday 14 April 2026 to discuss a range of important updates and ongoing projects. Key decisions included noting the progress of the Scheme Advisory Board's peer support project, reviewing the training plan for the coming year, and approving the annual work plan for the board.

Scheme Advisory Board Peer Support Project

Representatives from the Scheme Advisory Board (SAB) presented an update on their peer support project, which aims to formalise a framework for Local Government Pension Scheme (LGPS) administering authorities to gain external assurance for their governance activities. This initiative is designed to promote best practice and facilitate learning between funds, acting as a critical friend rather than an inspection or audit. The project is separate from the Independent Governance Review (IGR) but is seen as potentially complementary. A dedicated working group, comprising 22 officers from 18 funds, has been involved in shaping the offer, and a pilot phase is now being planned. The SAB is seeking feedback from the board on their work to date.

Pension Related Training

The board reviewed the training record for 2025/26 and the proposed training plan for 2026/27. The training plan for the coming year has been approved by the Pension Fund Committee and includes topics designed to ensure compliance with new knowledge and understanding requirements for those involved in fund decision-making. A key development for this year is the participation in the Hymans Robertson national assessment knowledge check, which will take place in August and September. This assessment is intended to help the fund evidence compliance with training requirements and is not a formal exam. The board noted that the Lola platform is being refreshed, and further details on this will be provided.

Lancashire Local Pension Board Annual Workplan 2026/27

The board was asked to approve the annual work plan for 2026/27, which has been developed in consultation with the chair and takes into account the fund's three-year strategic plan. The work plan aims to ensure the board continues to undertake activities within its statutory remit, supporting compliance with LGPS regulations and promoting effective governance and administration. A new element for this year is a fund-specific conflict of interest policy, which will be brought to the board for review. The work plan is broadly in line with the previous year's, providing a structured programme of activity.

Lancashire County Pension Fund - Governance Matters

This report provided an update on governance issues since January 2026. An internal audit of LPPA's Pension System Automation Change Management processes concluded that controls are reasonably effective, with some room for improvement in documentation. Recommendations were made regarding the development of policy and procedures for change management, verification of system testing by Civica, and ensuring user acceptance testing covers the complete process. External audit of the 2024/25 accounts was completed with a positive outcome, noting that backlogs of cases were cleared and SLAs were being met. Two non-reportable breaches occurred in the quarter: a data breach involving information sent to Warrington Borough Council in error, and an overpayment due to a manual calculation error. The report also detailed progress on the Pensions Bill and Fit for the Future programme, highlighting the need for all committee and board members to have appropriate knowledge and understanding, and confirming the fund's participation in the Hymans Robertson Knowledge Assessment. Steps are being taken to appoint an independent person to the Pension Committee, with a broader remit covering governance, administration, and investment. The report also included an update on Local Government Reorganisation (LGR), noting that work has begun to consider the implications for the pension fund, its employers, and scheme members, with regular meetings being held and a report on structural options being prepared.

Regulatory Update

The report confirmed that public service pensions would increase by 3.8% from April 2026, in line with the Consumer Prices Index. Member contribution bands will also increase by the same rate from April 2026. The Access and Fairness consultation will be implemented in two phases, with Phase 1 changes effective from April 2026. Material changes, such as the equalisation of survivor benefits and removal of the age 75 cap for death grants, must be communicated to members by 30 June. The guidance also confirmed that backdated survivor payments will be implemented by 1 January 2028. Regarding Access and Protections, councillors, mayors, and deputy mayors in England may opt to join the LGPS from 11 May 2026. LPPA is updating its website and developing relevant processes. The report also noted the progress of the Pensions Bill and highlighted the Virgin Media Court of Appeal judgement's implications for defined benefit schemes.

Pensions Administration Update

This report provided a quarterly update on administration matters, including Service Level Agreement (SLA) performance, which was 99.1% for the quarter ending 31 December 2025. The average call wait time was 3 minutes 27 seconds, below the target of 4 minutes. The report detailed progress on the Collaborative Pensions Optimisation Project (CPOP), which has concluded and led to improvements in data flow and employee understanding of the retirement process. Initiatives implemented include improved staff guidance, enhanced Oracle Fusion functionality, and online retirement forms. Updates were also provided on the McCloud remedy, with LPPA making good progress and expecting payment activity to begin in Q1 2026/27. The triennial valuation for the fund has been completed, with employers receiving confirmation of their contribution rates.

Pensions Dashboard

An update was provided on the government's Pension Dashboard initiative. Lancashire County Pension Fund connected to the dashboard in December 2025, and controlled testing is ongoing. LPPA is reaching out to members of their panel to participate in further testing. Daily reporting to the Money Helper Service will be required from November 2026. LPPA is undertaking a tracing exercise to verify addresses for deferred members over age 52, and this work will take place during Q1 and Q2 of 2026/27. Over 93% of members are currently considered dashboard ready based on surname, date of birth, and National Insurance number.

LCPF Risk Register

The board reviewed the fund's risk register, with a focus on key risks including Investment Strategy, Actuarial Valuation and Monitoring of Funding, and Geopolitical Risk. The risk associated with the Actuarial Valuation and Monitoring of Funding has been reduced from Medium to Low due to the significant work undertaken to target stable contribution rates. A new risk, T8 – Local Government Reorganisation (LGR), has been added to monitor preparations for LGR and its potential impact on the fund. Other risks of note included the departure of the Finance Lead officer, with an interim appointment made, and an update to the Cyber Hygiene Guidelines to include Generative AI.

Pension Fund Committee 20 March 2026 Agenda Review

This report provided an update on items considered by the Pension Fund Committee on 20 March 2026 that fall within the remit of the Pension Board. These included the LCPF Strategic Plan 2026-29 and Budget 2026/27, a Fit for the Future Update, and a Review of the Funding Strategy Statement. An update was also provided on structural changes to Local Pensions Partnership Ltd to facilitate the expansion of the investment pool.

Urgent Business

No items of urgent business were raised at the meeting.

Date of Next Meeting

The next scheduled meeting of the Pension Board will be held on Wednesday, 15 July 2026.