I'm not sure the view of the Pension fund is to generate revenue...

I'm not sure the view of the Pension fund is to generate revenue whilst prices are depressed. If prices were low in the first place, they should be exiting if they are truly acting in the members' interests. One must ask, at a macro level what is the true objective and outcome achieved via script lending?
Even short term price impacts due to shorting have an impact on members. Members withdraw every single day at daily caculated prices.
The outcome need not be failure for there to be a detrimental impact to members.