The Pension Fund Committee of Lancashire County Council met on Friday, 20th February, 2026, to discuss the proposed demerger of Local Pensions Partnership Investments Limited (LPPI) and the admission of new partner funds. The committee resolved to note the progress of the demerger, approve a dividend in specie to facilitate the process, and delegate authority for its implementation. They also recommended that Full Council approve the demerger and related steps.

Local Pensions Partnership Investments Limited - Admission of New Partner Funds

The committee discussed the significant restructuring of Local Pensions Partnership Investments Limited (LPPI). The proposal involves LPPI demerging from Local Pensions Partnership Limited (LPPL) to become the subsidiary of a new holding company, currently referred to as TopCo . Lancashire County Council, alongside the London Pension Fund Authority (LPFA), will be equal shareholders in TopCo with seven new Partner Funds. LPPL will continue to provide pension administration services.

The committee resolved to:

• Note the progress made and the upcoming stages of the demerger and the admission of new Partner Funds into the LPPI pool.
• Approve a dividend in specie, as detailed in the report, to facilitate the demerger of LPPI from LPPL to TopCo. This approval is contingent on Full Council agreeing to amend LPPL's Articles of Association on 12th March 2026 to permit such a dividend.
• Delegate authority to the Director of Finance and Commerce (S151 Officer), in consultation with the Monitoring Officer and the Head of the Pension Fund, to implement the dividend in specie.
• Note future developments related to the admission of new Partner Funds into the expanded LPPI pool, including internal governance arrangements.

Furthermore, the committee recommended that Full Council be asked to:

• Approve the demerger of LPPI from LPPL, with Lancashire County Council becoming a shareholder in TopCo, and the admission of seven new Partner Funds as equal shareholders.
• Delegate authority to the Director of Finance and Commerce (S151 Officer), in consultation with the Monitoring Officer and the Head of the Pension Fund, to take all necessary steps to enact these approvals. This includes:
  • The capital reduction of shares within LPPL to create distributable reserves.
  • Amending LPPL's Articles of Association to allow a dividend in specie from LPPL to TopCo.
  • Subscribing to A (voting) and B shares in TopCo as contributions to the company's regulatory capital.
  • Cancelling shares in TopCo, resulting in a capital return to the Lancashire Pension Fund and LPFA.
  • Reducing the capital of shares within TopCo from a nominal value to a lower, to-be-confirmed value to create distributable reserves for future dividends.
  • Entering into all necessary resolutions and agreements, including the Shareholders' Agreement, to manage the transition to TopCo.
• Note that a review of internal governance arrangements concerning shareholder matters is ongoing, and a further report will be presented to Full Council.

The meeting also confirmed the minutes of the previous meeting held on 23rd January 2026. No declarations of interest were made, and no urgent business was raised. The date of the next meeting was set for 20th March 2026. The press and public were excluded from the discussion on the LPPI demerger due to the likely disclosure of exempt information.