The Pension Fund Committee of Lancashire County Council is scheduled to convene on Friday, 18 September 2026, to discuss a range of governance, investment, and administration matters concerning the Lancashire County Pension Fund. Key topics on the agenda include the review of the Fund's governance arrangements, a proposed conflicts of interest policy, and the annual report for the 2025/26 financial year.

Lancashire County Pension Fund Governance Matters

The committee is set to review the governance of the Lancashire County Pension Fund. This will involve considering updates on risk management and governance issues since the June 2026 meeting. The report also seeks approval for the Fund's Communications Policy and the Governance Compliance Statement. Additionally, updates on the Fund's risk register will be presented, reflecting steps taken to manage identified risks. The committee will also receive information on pension-related training undertaken by committee members, with a focus on ensuring compliance with the strengthened 'knowledge and understanding' requirements introduced by the Pension Schemes Act 2026.

Lancashire County Pension Fund Conflicts of Interest Policy

A draft Conflicts of Interest Policy for the Lancashire County Pension Fund is scheduled for consideration. This policy aims to outline how actual, potential, and perceived conflicts of interest are identified, monitored, and managed, as required by regulations. The policy applies to a wide range of individuals involved in the Fund's governance, administration, or management, including committee members, officers, advisers, and service providers. Practical steps for adhering to the policy, such as the declaration of interests and gifts, are detailed, alongside procedures for managing identified conflicts.

Audit Assurance 2025/26

The committee will receive a summary of the internal audit assurance work conducted for the Lancashire County Pension Fund during the 2025/26 financial year, along with planned audits for 2026/27. This report provides an overview of audit work completed and the assurance gained over key risks, controls, and processes. The report also includes consideration of external assurance reports obtained by Local Pensions Partnership Administration Ltd (LPPA) and Local Pensions Partnership Investments Ltd (LPPI), which provide independent assurance over their respective control environments.

Independent Governance Review

The committee is being asked to approve the undertaking of an Independent Governance Review (IGR) for the Lancashire County Pension Fund in the first quarter of the 2027/28 financial year. This is a regulatory requirement for all Local Government Pension Scheme (LGPS) funds, with the first reviews needing to be completed by 31 March 2028. The review will provide an external assessment of how well the fund is governed, managed, and overseen, examining areas such as committee effectiveness, risk management, and regulatory compliance.

Investment Strategy Statement

An updated Investment Strategy Statement (ISS) for the Pension Fund is scheduled for approval, based on advice received from Local Pensions Partnership Investments Ltd (LPPI). The ISS outlines the administering authority's objectives, priorities, and preferences for investing the Fund's assets. The committee will be asked to approve the draft ISS, which includes sections on governance, investment beliefs, financial objectives, risk appetite, and strategic asset allocation, ahead of a consultation with key stakeholders. A key element for discussion will be the determination of the Strategic Asset Allocation (SAA), with proposed options presented to balance employer contribution affordability and stability.

Lancashire County Pension Fund Annual Report 2025/26

The committee is being asked to approve the draft Annual Report and Accounts for the Lancashire County Pension Fund for the year ended 31 March 2026. This report details the Fund's activity and financial performance, prepared in accordance with regulatory guidance. Key highlights from the draft report include an increase in investment assets under management to £12.3 billion, a healthy funding level of 132%, and a reduction in average employer contribution rates. The report also includes the Annual Report from the Lancashire Local Pension Board.

Responsible Investments Report

This report focuses on the responsible investment aspect of the Pension Fund's investment activity, outlining the work undertaken by its pooling partner, LPPI. It includes a dashboard summary of activity for April to June 2026, detailing stewardship activities such as shareholder voting and engagement. The report highlights LPPI's voting record, with 54% of votes against management addressing issues such as lack of independent challenge and inadequate disclosure. It also provides insights into the Fund's exposure to green and brown assets and details collaborative engagement efforts.

Pensions Administration Strategy Statement Review

The committee will consider a revised Pension Administration Strategy Statement (PASS) for approval. This statement defines the roles and responsibilities of the Fund, LPPA, and Scheme employers in administering the LGPS, setting out quality and performance standards. The review has involved consultation with the Local Pension Board and Scheme Employers, with no substantive issues raised. The PASS will be further reviewed once statutory guidance is available.

Pension Administration Performance Update

An update on pension administration services delivered by LPPA for the period 1 April 2026 to 30 June 2026 (Quarter 1) will be presented. The report indicates that Service Level Agreements (SLAs) have been met, with overall service performance exceeding the 95% target. Additional metrics on retirements and customer satisfaction are also included. The report will also cover project updates, including progress on the McCloud Remedy and Pensions Dashboard, and regulatory changes such as the LGPS Access and Fairness regulations and changes to the SCAPE discount rate. The committee will be asked to agree that the high percentage of annual benefit statements produced means reporting to the Pensions Regulator is not necessary.

Other items

The agenda also includes a review of the minutes from the previous meeting, disclosure of interests, and a session for urgent business. Part II of the meeting, which is not open to the press and public, will cover Reflections on the Valuation, Investment Performance Report, Investment Implementation - Due Diligence Meeting focused on Global Equity Performance, and Investment Panel - Update.