Glasgow university seeks actuarial and admin support
UK - The University of Glasgow is seeking one or more providers for actuarial and consultancy services and scheme administration and related services, for its pension scheme for non-academic staff.
Academic staff at the university are eligible to join the Universities Superannuation Scheme (USS), which is managed separately by a trustee company in Liverpool, however alongside this the institution also runs the University of Glasgow Non-Academic Staff Pension Scheme (NASPS).
The scheme employs Mercer as its scheme actuary and for consultancy services, while Hymans Robertson is responsible for the administration of the £165.4m (€182.4m) scheme.
It is now re-tendering the contracts for these positions, with the scheme administration and related services, and the actuarial and consultancy services contracts both expected to last for an initial period of three years with the possibility of a one-year extension.
The pension fund recently completed its latest triennial valuation in March 2008, in which it revealed a funding level of 81% and a shortfall of £36.8m - a figure that has almost tripled since the previous valuation in 2004 when it reported a £13.9m deficit.
The University of Glasgow blamed the worsening financial position on a "higher and more prudent value being put on the scheme's liabilities, the impact of increasing life expectancy and a fall in the scheme's assets between 1 April 2007 and 1 April 2008".
Despite the increasing deficit, the scheme's summary funding statement from 31 March 2008 revealed the investment strategy of the fund is 87% in company shares, 5% in government securities, 5% in corporate bonds and 3% in cash.
Providers may apply for one or both positions, but the closing date for submissions is 26 January 2009, with more details available from the University of Glasgow's purchasing office.
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