§ Dr. Twinnasked the Secretary of State for the Environment what assessment he has made of the implications for their fiduciary duty towards local authority pensioners under the local government superannuation fund regulations of the use made of, and financial support given to, the Pension Investment Research Centre by certain local authorities in London.
§ Mr. ChopeThe Local Government Superannuation Regulations 1986 set out a number of rules governing the investment of these superannuation funds. They impose132W limits on the proportion of a fund which may be invested in certain ways, and require fund authorities to obtain expert financial advice at reasonable intervals. The accounts of the funds are subject to audit under part III of the Local Government Finance Act 1982, and the auditor may apply to the court for a declaration that an item of expenditure is contrary to law. Alternatively, it would be open to a person with sufficient interest to apply for judicial review under Order 53 of the Rules of the Supreme Court. My right hon. Friend considers that these safeguards are adequate, but will keep the position under review.