The Pensions Committee of City of Edinburgh Council met to discuss a range of topics relating to the Lothian Pension Fund. These included the approval of a statement of responsible investment principles and an update on the Fund’s business plan, budget and strategy. A quarterly governance update and details of a revised pensions administration strategy were also included for discussion.

Statement of Responsible Investment Principles

The Committee was scheduled to consider a report providing details of an updated statement of responsible investment principles. The report suggested the inclusion of a commitment to use the assessments of the Transition Pathway Initiative “to identify and mitigate the risk of exposure to sector ‘laggards’, particularly those high impact companies (including Oil & Gas) on the Climate Action 100+ focus list”.¹ The report also noted that:

“At LPF, our mission is to deliver a valued and sustainable retirement savings product for our existing and future members. We believe that as a provider of responsible capital, the Fund should be an agent for positive change, engaging with companies to help them maintain or adopt best business practices and sustainable business models.”

A separate Climate Change Policy was also included for discussion. The policy sought to articulate LPF’s approach to this critical issue.

Lothian Pension Fund Business Plan, Budget and Strategy Update

The Committee was scheduled to be provided with an update in relation to the progress of the 2023 – 2024 Strategy and Business Plan, performance indicators, and actions to enable Lothian Pension Fund to meet its key objectives. In addition, a number of functional plan updates were scheduled for discussion. These updates detailed matters such as the completion of a retirement pilot; the holding of an employer event; and changes to the pensions administration software. Updates regarding the McCloud judgement and the Pension Dashboard were also included.

Quarterly Governance Update

The Committee was scheduled to consider a report on matters such as: training hours for 2024/25; a number of governance improvements; and proposed future agendas.

Revised Pensions Administration Strategy

The Committee was scheduled to discuss a number of revisions to the Pension Administration Strategy. These included, for example, changes to the timescales in relation to information provided to the Fund by employers when a member is retiring. That is, it was proposed that the timescale for providing information would be reduced from 20 working days to 15 working days before the member’s date of leaving. In addition, the report suggested that in relation to early leavers:

“Notification that the member is an early leaver made through the monthly i-Connect submission”

should be provided no later than 35 working days (as opposed to 20 working days) after the member’s date of leaving.

Supplier Management Overview

The Committee was scheduled to consider an overview report on matters such as supplier management, details of upcoming procurements, and a summary of tier 1 suppliers.

Risk & Compliance Update

The Committee was scheduled to be updated on the monitoring and assurance undertaken in Lothian Pension Fund. This included a summary of open and closed compliance issues; a summary of risk management information; and a summary of the LPF risk register.