The Lancashire County Council Pension Fund Committee was scheduled to meet on 12 December 2025 to discuss pension-related training for committee members, budget monitoring for the 2025/26 financial year, and responsible investment activity. Also on the agenda was an update on the Funding Strategy Statement consultation, and the Local Pensions Partnership Annual Report and Accounts for 2024/25. Some items, including updates on the Lancashire County Pension Fund (LCPF) Strategic Plan 2024/25, Local Pensions Partnership Administration (LPPA), risk register, shareholder and investment performance, and the appointment of an independent investment advisor, were scheduled to be discussed in Part II of the meeting, which was not open to the press or public.

Funding Strategy Statement Consultation

The committee was scheduled to discuss feedback obtained from scheme employers and other interested parties during the Funding Strategy Statement (FSS) consultation. The report recommended that the Pension Fund Committee approve the key parameters of the proposed Funding Buffer (120%), Recovery Period (20 years), Future Service Discount Rate (CPI + 2.25%) and Past Service Discount Rate (CPI + 2.65%). It was noted that this would reduce average total employer pension contribution rates across the Fund from 17.1% to a provisional 10.8% of pensionable pay.

The consultation on the draft FSS was launched on 1 October 2025 and closed on 30 November 2025. As part of the consultation, employers were asked to respond to a questionnaire seeking feedback on the key parameters used to determine employer pension contribution rates. Additionally, all scheme employers were invited to an individual meeting with Fund Officers and the Fund's Actuary to consider their own individual results from the valuation.

According to the report:

Throughout the consultation, 25 employers (27% of respondents and 7% of all employers) expressed their concerns with the parameters used within the valuation and requested that the Fund offset some prudence to enable employer contribution rates to be reduced further. These employers were primarily Councils (9 respondents representing 10 Councils) and Academies (3 respondents representing 12 Academies).

The report noted that some employers valued contribution stability and the potential for the proposed level of contributions to be sustained over a longer period.

Responsible Investments Report

The committee was scheduled to review a report on responsible investment activity by Local Pensions Partnership Investments Limited (LPPI). The report included a response to the Full Council resolution from 16 October 2025 relating to Environmental, Social and Governance (ESG), and Net Zero targets.

The report stated that on 16 October 2025, Full Council resolved to:

ask the Pension Fund Committee to review all Environmental, Social and Governance requirements and Net Zero targets of the LCC Pension Fund to ensure that Net Zero commitments do not go beyond statutory requirements and impact on the Fund's fiduciary responsibility to current and future pensioners.

The report stated that the Fund has not made a Net Zero commitment and therefore Net Zero is not considered when requesting LPPI to implement the Fund's Investment Strategy.

The report also summarised key takeaways from the LPPI report, including:

• The co-sponsoring of a white paper with The Good Economy on place-based impact investing¹.
• The hosting of LPPI's fourth annual conference in September, focusing on collaboration among partner funds and industry leaders, and discussing implications of regulatory changes.
• An investment by GLIL Infrastructure² in a UK project to future-proof water supply for millions in the Northwest, delivering regional economic benefits and job creation.

Local Pensions Partnership Annual Report and Accounts 2024/25

The committee was scheduled to consider the Local Pensions Partnership (LPP) Annual Report and Accounts for the year ending 31 March 2025. The report includes a group strategic report and the financial statements of the company. According to the report, LPP (incorporating both LPPI and LPPA) made an operating profit (pre-tax, pre-pension liability obligations) of £0.6m in 2024/25.

Budget Monitoring 2025/26 - Q2

The committee was scheduled to review the income and expenditure of the Pension Fund for the 6-month period to 30 September 2025 and a forecast for the year ending 31 March 2026. According to the report, at the start of the year, it was forecast that expenditure would exceed income by £101m in 2025/26, but the mid-year review forecasts that expenditure will exceed income by £87m.

Pension Related Training for Committee Members

The committee was scheduled to receive an update on training involving members of the committee which has taken place since the last meeting in September 2025. The report noted that knowledge and understanding are extremely important in the governance of pension funds within the Local Government Pension Scheme (LGPS)³.

Since the last meeting of the committee, Councillor County Mr Joel Michael Tetlow, in his role as Chair of the Pension Fund Committee, had undertaken induction training with a range of key stakeholders including the Head of Fund and other fund officers, Democratic Services and the CEO of LPP.

The report also noted that County Councillors Rick Edwards, Gordon Johnson, Steve Rigby, D Shaw, and Russell Walsh had participated in the Pensions UK conference (14-16 October 2025), and that County Councillors Joanne Ash, Rick Edwards, Gordon Johnson, and Ashley Joynes had participated in the LGA – LGPS Fundamentals (3 days, October, November, December 2025).

Investments In Occupied Territories (Israel)

The committee was scheduled to discuss investments in occupied territories (Israel).