The £11.1 billion Lothian Pension Fund, Scotland’s second-largest Local Government Pension Scheme, published its unaudited Annual Report and Accounts for 2025-2026 showing it “continues to demonstrate strong governance, operations and transparency.”

Lothian Pension Fund, which has 90,850 members, said it achieved an overall investment return of +8.7%, with three and five-year annualised returns of +5.5%

During 2025-26, the fund paid out £272 million in pensions to 39,000 members and welcomed 5,153 new members. It delivered 58,389 benefit statements and achieved a 95.5% member satisfaction score.

Lothian Pension Fund CEO David Vallery said: “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.”