Local Government Pension Scheme
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the oral contribution of the Pensions Minister on 3 December 2025, Official Report, column 1043, whether his Department has considered the potential merits of introducing legislation to develop statutory guidance for the local government pension scheme on (a) fiduciary duty and (b) systemic risks.
Answered by Alison McGovern
Administering authorities in the Local Government Pension Scheme are already required by statutory guidance to discharge their responsibilities in managing investments with care, skill, prudence and diligence. They must also consider factors that are financially material to the performance of their investments, including systemic risks such as climate risk. Non-financial factors may also be taken into account, provided they do not risk significant financial detriment to the scheme and where they have good reason to think that scheme members would support their decision.
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