Lothian Pension Fund (LPF), Scotland’s second-largest Local Government Pension Scheme, has announced the release of its Unaudited Annual Report and Accounts for the 2025/2026 financial year. With over £11.1 billion in assets under management, LPF continues to demonstrate strong governance, operations and transparency. Read the full report here.
Key headlines from the 2025/26 report include:
Scale and impact: Lothian Pension Fund now manages more than £11.1 billion and serves around 90,850 members
Multi-award-winning year: Named LGC Fund of the Year (Large) at the 2025 LGC Awards; LGPS Fund of the Year (Assets over £3bn) at the LAPF Investment Awards 2025, and Best Public Sector or Not-for-Profit Team (1-5 people) at the IOIC Awards 2025
Investment resilience: Achieved an overall investment return of +8.7%, with three and five-year annualised returns of +5.5%
Benefits delivered: During 2025/26, paid out £272 million in pensions to 39,000 members and welcomed 5,153 new members
Strong member service: Delivered 58,389 benefit statements and achieved a 95.5% member satisfaction score, with an upgraded digital experience to manage pension benefits
Responsible investment leadership: LPF retained Financial Reporting Council Stewardship Code accreditation and introduced a new Climate Change Policy to strengthen its support for the transition to net zero
Clear evidence of delivery: Retained our PASA accreditation, Customer Service Excellence (CSE) and Cyber Essentials Plus certification.
David Vallery, LPF’s Chief Executive Officer, says about the 2025/26 report findings:
“2025/26 was another standout year for Lothian Pension Fund. I’m proud of the recognition we received across the sector, but even more proud of what it represents: the dedication and expertise our colleagues bring to serving members and employers every day.
“The external environment is more challenging than it has been for some time, with geopolitical uncertainty, rapid technological change and market volatility all shaping the landscape we operate in. However, LPF’s strong long-term investment performance and the recent increase in interest rates mean we expect to show an improved funding position at the 31 March 2026 valuation point.
“Whilst the external environment remains challenging, our priorities are clear with the valuation, building on our strong operational performance and enhancing governance. We’ll also focus on colleagues and deepening key collaborative partnerships. All whilst we remain dedicated to paying pensions on time, supporting members and employers, and investing responsibly for the long-term.”