FSS Consultation
Consultation on the Draft Funding Strategy Statement
We are inviting feedback on our draft Funding Strategy Statement (FSS), which sets out Lancashire County Council's approach to ensuring the long-term financial sustainability of the Lancashire County Pension Fund. The FSS sets out how employer contributions are determined, how funding risks are managed, and how we aim to balance affordability, stability, and prudence. We welcome responses from employers, guarantors, stakeholders, and other interested parties to help shape a strategy that best reflects the needs and priorities of all participants in the fund. The closing date for responses is 30 November 2025.
Valuation Results and Implications
The Fund's valuation as at 31 March 2025 indicates a significant improvement in its funding position. This strengthened position enables a reduction in employer contribution rates, while also enabling an increase in prudence. The increase in prudence not only enhances the likelihood that contributions will be sufficient to meet future benefit payments, but also supports the Fund’s long-term objective of maintaining contribution stability, helping to reduce the risk of large contribution increases in future valuations.
Further information on individual contribution rates will be provided to employers in line with the valuation timetable which is set out here.
Changes to the FSS
In line with guidance published by the Scheme Advisory Board, the format and structure of the FSS have changed significantly from 2022. Notably, the revised FSS now incorporates several key Fund policies directly within it, and will replace the Admission and Termination Policy, the Inter-valuation Contribution Review Policy and the Employer Risk Policy.
Please find links below to the key documents and changes -
- the current FSS and associated policies can be found here.
- A summary of the key changes to the FSS.
- The full revised draft FSS.
How to Respond to the FSS Consultation
To respond to the consultation please complete the questionnaire which can be found here.
The closing date for submissions is 30 November 2025. If you have any questions regarding the consultation please email PensionsEmployerRisk@lancashire.gov.uk.
