The Pension Fund Committee of Lancashire County Council is scheduled to convene on Friday, 19 June 2026. The meeting's agenda includes a review of the committee's constitution and terms of reference, alongside discussions on the Lancashire County Pension Fund's budget, external audit plan, and governance matters. Further topics for consideration encompass responsible investment reports, the investment strategy statement, and updates on pension administration performance.

Constitution, Membership and Terms of Reference of the Committee

The committee is set to review its constitution, membership, and revised Terms of Reference, which were approved by Full Council on 21 May 2026. This includes the appointment of County Councillor J Tetlow as Chair and County Councillor Mrs M Atkinson as Deputy Chair. The report details the allocation of County Councillor and co-opted member positions, with nominations received from various political groups and nominating bodies. The revised Terms of Reference involve the deletion of certain reserved matters and their consolidation into a new Pensions Shareholder Governance Committee, as well as amendments regarding the appointment of Independent Investment Advisers and an Independent Person.

Pensions Shareholder Governance Committee

This item will update the committee on the establishment of a new Pension Shareholder Governance Committee, approved by Full Council on 21 May 2026. This new committee is designed to streamline shareholder decision-making functions for any pensions-related company and consolidates these responsibilities from the Employment Committee and the Pension Fund Committee. The report outlines the proposed amendments to the Constitution and the Terms of Reference for this new committee, which will consider matters requiring shareholder decision-making not reserved for Full Council. Nominations for the four vacancies on this committee have been requested.

Lancashire County Pension Fund 2025/26 Budget and Outturn

The committee will consider the financial results for the year ending 31 March 2026. The report details the outturn position of the Fund's budget, noting that expenditure exceeded income by £82.3m, which was an improvement on the anticipated £19.1m deficit. This deficit was offset by a £379.8m growth in the Fund's assets. The report breaks down income and expenditure, including contributions received, investment income, benefits payable, and administrative and investment management expenses, comparing actual outturn against the budget.

Lancashire County Pension Fund External Audit Plan 2025/26

This report outlines the external audit plan for the financial year 1 April 2025 to 31 March 2026, conducted by Grant Thornton. The plan details the scope of work required to provide an opinion on the financial statements and value for money arrangements. Key risks identified include management override of controls, valuation of Level 3 investments, and valuation of directly held properties. The audit is scheduled to take place between July and September 2026, with an estimated fee of £122,703.

Lancashire County Pension Fund - Governance Matters

The committee will receive an update on risk management and governance issues relating to the Lancashire County Pension Fund since the March 2026 meeting. This includes information on the Pension Schemes Act 2026, which introduces new governance requirements from 30 June 2026, and the Fund's current position in meeting these. The report also details breaches recorded by Fund Officers over the past year, categorised as data, administration, and contribution breaches, noting that no breaches were considered material enough to report to the Pensions Regulator. The committee will also review updates to the Fund's risk register and discuss the implications of Local Government Reorganisation.

Pension Related Training and Revised Training Plan 2026/27

This item will update the committee on training undertaken by members since March 2026 and present the revised Training Plan for 2026/27. The report highlights strengthened knowledge and understanding requirements for those with delegated pension functions, effective from 30 June 2026. The training plan includes online modules, bespoke workshops, and external training opportunities, with a focus on investment strategy and governance. The committee is asked to review the training record and approve the updated plan.

Appointment of the Independent Person for Lancashire County Pension Fund

The committee is asked to approve the appointment of Ms Marian George as the Independent Person for the Lancashire County Pension Fund for a three-year term commencing 1 July 2026. Ms George was recommended following a procurement process led by a Procurement Panel. Her remit will cover investments, governance, and administration of the Fund, in line with new regulations arising from the Fit for the Future reforms. Ms George has over 30 years of experience in pensions, investments, and governance.

Responsible Investments Report

This report focuses on the responsible investment aspects of the Fund's investment activity, outlining work undertaken by its pooling partner, Local Pensions Partnership Investments Limited (LPPI). The report details LPPI's activity in areas such as climate transition, enhanced governance, and stewardship. Key takeaways include an increase in green exposure and consistent stewardship activity. The report also references policy and regulatory developments, including the Pension Schemes Act 2026.

Investment Strategy Statement - Investment Beliefs

The committee will consider a review of the Fund's Investment Strategy Statement (ISS), including proposed revisions to its underpinning investment beliefs. The ISS is required to be reviewed and revised at least every three years, with new LGPS Regulations due to come into effect at the end of June 2026. The review process includes training sessions for committee members on topics such as investment objectives, local investments, and strategic asset allocation. The proposed amendments to the investment beliefs aim to clarify wording, emphasise the long-term nature of the Fund, and incorporate a new belief regarding local investments.

Pension Administration Performance Update

This report provides an update on administration services delivered by Local Pensions Partnership Administration Ltd (LPPA) for the period 1 January 2026 to 31 March 2026. The report indicates that LPPA exceeded its Service Level Agreement (SLA) target of 95%, achieving 99.2% overall performance. It also details additional metrics related to member experience, such as the timeliness of first pension payments for retiring members and performance against regulatory disclosure requirements. The report includes updates on complaints, customer satisfaction, and ongoing projects such as the McCloud Remedy and the Pensions Dashboard.

Urgent Business

Under this heading, any urgent business will be considered, provided that the Chair deems it necessary due to special circumstances.

Date of Next Meeting

The next meeting of the Pension Fund Committee is scheduled for 18 September 2026.

Exclusion of Press and Public

The committee will consider whether to exclude the press and public from the meeting during the consideration of specific items of business where there is likely to be a disclosure of exempt information.

Part II (Not open to Press and Public)

This section of the agenda includes items that will be discussed with the press and public excluded. These are the Investment Performance Report and the Investment Panel Update.