The Pension Shareholder Governance Committee of Lancashire County Council met on Thursday 30 July 2026 to discuss the establishment and terms of reference for the committee, as well as the governance and financial arrangements of Local Pensions Partnership Ltd (LPP Ltd) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL). The committee was also scheduled to consider a proposed dividend payment from LPP Ltd.

Constitution, Membership and Terms of Reference

The committee was presented with the constitution, membership, and terms of reference for the newly established Pension Shareholder Governance Committee. This committee was created by Full Council on 21 May 2026 to specifically handle shareholder decisions related to pension-related companies, providing a more robust governance structure. The terms of reference were amended from an earlier version, with a reference to 'JVCo' being replaced by 'pension related company'. The committee was asked to consider and comment on these documents.

The establishment of this committee consolidated shareholder functions previously delegated to the Employment Committee and the Pension Fund Committee. The membership includes four county councillors, with nominations received from Reform UK and Progressive Lancashire. The committee's purpose is to undertake functions in relation to the County Council's shareholding in any pension-related company or subsidiaries that are not reserved elsewhere in the Constitution. This includes making shareholder decisions, approving remuneration policies, and reviewing company effectiveness.

Local Pensions Partnership Ltd and Local Pensions Partnership Investments Holdings Ltd

Background information was provided regarding Local Pensions Partnership Ltd (LPP Ltd) and Local Pensions Partnership Investments Holdings Ltd (LPPIHL), the two pension-related companies in which Lancashire County Council holds a part ownership. LPP Ltd is jointly owned by Lancashire County Council and the London Pensions Fund Authority (LPFA), providing pension administration services. LPPIHL is the holding company for LPPI, which offers investment management services to nine partner funds, including Lancashire County Council. The report outlined the company structures and provided a summary of each company's services.

Approval for the payment of dividend from Local Pensions Partnership Ltd to shareholders

The committee was asked to consider and approve the payment of a £10 million dividend from LPP Ltd to its shareholders. This dividend would be distributed as £5 million to Lancashire County Pension Fund and £5 million to the London Pension Fund Authority. The recommendation was made following the LPP Board's approval of the dividend, subject to the signing of the 2025/26 financial statements in September 2026 and the receipt of tax advice confirming no material adverse tax consequences for the Lancashire County Pension Fund.

The report detailed the background to the dividend payment, including a previous £9 million dividend paid by LPPI to LPP Ltd in March 2026 as part of a demerger process. It also outlined the liquidity targets set for LPPA (£2 million) and LPP Ltd (£1 million), creating an overall group liquidity buffer of £3 million, which is considered appropriate for the scale of the Group's financial obligations. The dividend payment is a reserved shareholder matter, requiring the agreement of both shareholders.

LPPA Chief Executive 2026/27 Remuneration

The committee was scheduled to consider the remuneration for the LPPA Chief Executive for the 2026/27 financial year. This item was designated as exempt from public disclosure due to the likely disclosure of exempt information.