Agenda item

The DoPD presented the report to members.

 

Information

The role of the Local Pension Board, was defined by the Public Service Pensions Act (PSPA) 2013 Sections 5(1) and (2), was to assist Lancashire Combined Fire Authority as Scheme Manager, in ensuring the effective and efficient governance and administration of the Firefighters’ Pension Scheme.

 

The Board’s role included assisting the Scheme Manager in securing compliance with:

 

·         The Pension Scheme regulations.

·         Other legislation relating to the governance and administration of the Pension Scheme.

·         Requirements imposed by The Pensions Regulator.

 

The Board was not a decision-making body but provided oversight and assurance to support the effective and efficient governance of the Firefighters’ Pension Schemes.

 

The Combined Fire Authority had delegated its Pension Scheme Manager responsibilities to the Director of People and Development.

 

Governance Overview

The Board met twice during 2025-26 as set out in its terms of reference.  Meeting activity focused on:

 

·         Maintaining oversight on key pension risks, including review of the pensions risk register

·         Receiving regular updates on the implementation of age discrimination remedy and the Matthews Second Options exercise

·         Receiving and reviewing quarterly pension reports from the Local Pensions Partnership Administration (LPPA) relating to the performance of LPPA.

·         Receiving regular updates on Internal Disputes Resolution cases and Pension Ombudsman matters.

·         Monitoring compliance with statutory requirements and emerging issues.

 

Age Discrimination Remedy (McCloud/Sargeant)

The McCloud/Sargeant judgment confirmed that the transitional protections introduced under the 2015 Firefighters’ Pension Scheme reforms were unlawfully age discriminatory. As a result, from 1 April 2022, all active members were moved to the reformed scheme (FPS 2015), with retrospective remedy now being implemented for the period 1 April 2015 to 31 March 2022.

 

The Pension Board had actively monitored progress and performance in relation to the implementation of the McCloud/Sargeant remedy.

 

During 2025-26, the Board received updates on implementation progress, administrative impacts, and emerging risks associated with the remedy programme.

 

Matthews Second Options Exercise

The Matthews remedy provided eligible on-call (retained) firefighters with the opportunity to access pension benefits under the Modified Pension Scheme. Legislative changes introduced by the Government from 1 April 2026 required the Second Options exercise to be completed by 31 March 2027.

 

The Board would continue to monitor progress and performance closely, particularly in relation to legislative changes, outstanding cases and emerging risks.

 

Internal Dispute Resolution Procedure and Pensions Ombudsman

In 2020-21, the Service implemented the pensionable allowances project, applying pensionable allowances retrospectively for a six-year period. As a result, the Service had received several Internal Dispute Resolution Procedures (IDRP) appeals from current and former employees. These applications related to members who were dissatisfied that they were not included in the pensionable allowances exercise, either because of the type or temporary nature of the allowance, or because their service falls outside of the backdating period, 01 June 2015 to 31 May 2021. The Board had been kept informed of several complex cases considered at Stage 1 and Stage 2 of the Disputes Procedures. The Service had also been contacted by the Pensions Ombudsman regarding several cases.

 

During 2025-26, the Board also received updates on IDRP cases arising from contingent decision issues linked to remedy implementation, including the potential impact of delayed national guidance on case progression and member communications.

 

Pensions Dashboard

The Board continued to receive regular updates on progress with the Pensions Dashboard Programme (PDP). LPPA completed connection of its schemes to the dashboard infrastructure in December 2025 and was awaiting further confirmation from the PDP on the date the dashboard would become publicly available.

 

The Board continued to monitor progress of the development of the Dashboard against key project milestones.

 

Risk Management and Administration Oversight

The Board had maintained oversight of:

 

·         The pensions risk register, which was reviewed at each meeting

·         The performance of the pension administrator (LPPA)

·         Key risks relating to data quality, programme delivery and resource capacity.

 

The following key risks had been identified during the year:

 

·         Data quality, particularly in relation to historic records required for the Matthews Second Options exercise and the Pensions Dashboard Programme, much of which was outside the direct control of the Service.

·         Resource capacity, considering competing demands arising from major national projects relating to pensions activity. 

·         Dependency on national guidance, particularly relating to contingent decisions, which may result in delays in decision making. 

·         Complexity of legislative changes, increasing the administrative burden, which then created a risk of non-compliance.

·         Member expectations and communication challenges, particularly where outcomes were uncertain, or legislation was awaited. 

 

Mitigating actions included enhanced governance oversight, additional resourcing, and continued engagement with national bodies.

 

Training

Maintaining a high level of knowledge and understanding was a statutory requirement for Local Pension Board members. In 2025-26, all Board members continued to develop their pension knowledge through a variety of ways, including:

 

·         Attendance at Local Government Association (LGA) training sessions

·         Access to regular LGA bulletins

·         Use of The Pensions Regulator’s Public Service Toolkit

·         Ongoing engagement with the Scheme Manager and HR teams

 

Work Programme for 2026-27

The Board’s work plan would focus on:

 

·         Continued implementation of the McCloud/Sargeant age discrimination remedy.

·         Continued implementation of the Matthews Second Options exercise, including legislative changes arising from the Government’s consultation process.

·         Improvement of data quality and pension administration processes.

·         Monitoring and responding to national consultations.

·         Preparing for and responding to Pensions Dashboard requirements.

·         Enhancing member communication and engagement.

·         Ongoing development of the Board’s knowledge and skills.

·         Reviewing compliance with The Pensions Regulator’s data quality expectations.

 

The work plan would be reviewed regularly to respond to emerging risks and priorities.

 

In response to a question from County Councillor G Mirfin in relation to the reporting of Pension Ombudsman outcomes to members, the HR Manager confirmed that updates were reported to the Resources Committee. The DoPD added that the service was awaiting the outcome of some cases that were being considered by the Pension Ombudsman.

 

County Councillor G Mirfin asked a question about the business risks associated with pensions, the DoPD explained that decisions relating to pensions were often made in accordance with the legislative framework, or guidance, however there could be a cost implication where additional funding is not made available which could present a financial pressures and therefore issues were reported to members of the Fire Authority via the Resources Committee.

 

In response to a question from the chair in relation to the members of the pension board, the DoPD confirmed that membership of the board was made up of, two Fire Brigades Union (FBU) representatives, and two employees, who were currently the Deputy Chief Fire Officer and the Assistant Chief Fire Officer. In addition, the DoPD, the Payroll and Pensions Manager and the Pensions Coordinator attended as advisors. The Chair explained to members that following the Constitution Working Group it had been suggested that two Combined Fire Authority (CFA) members be introduced to the Pension Board rather than introducing a new pensions committee. The DoPD acknowledged that this would keep members up to date in relation to pension activity.

 

In response to a question from County Councillor J Tetlow in relation to support from the LPPA, the DoPD explained that there had been challenges. The Chair requested that any challenges be shared with County Councillor J Tetlow as the Chair of Lancashire County Councils Pension Committee.

 

Resolved: That the Committee noted the report.