UK – The Government Actuary’s Department has been axed as actuarial adviser to the two industry-wide Coal Pension Schemes with assets totalling £400m (€581m).
Following a competitive tendering process, Aon Consulting was appointed to replace GAD, and Aon chief actuary Donald Duval will be the new scheme actuary.
GAD was actuary to the Industry Wide Coal staff Superannuation Scheme and the Industry Wide Mineworkers’ Pension Scheme since the funds’ inception in 1994.
“We are disappointed not to be retained as actuaries to the IW schemes,” said a spokesperson for GAD.
“It is for the trustees to choose who should advise them. Unfortunately, on this occasion, they have decided not to select GAD.”
Coal Pension Trustees chief executive David Morgan said in a statement: “The trustees carried out a very detailed and extensive tender exercise as part of their regular governance programme of adviser reviews,”
“They were impressed with the way Aon integrated their funding and investment advice and by the way they proposed to handle these multi employer schemes in the new regulatory environment.”
Morgan declined to comment on the length of the tendering process. However, he told IPE that “several candidates” were interested in the appointment.
“Yes, it was a difficult decision, as these things always are,” he added.
Duval was “delighted” to have won the appointment “against strong competition from all the other major firms”.
“We think that the financial management of pension schemes should be considered as a whole, rather than the traditional separation of funding and investment,” said Duval.
In February, IPE reported that GAD finance director Kim Clegg would resign to join the Department for Work and Pensions’ Jobcentreplus.
The move followed a shake-up at the department, which saw its national population projections arm transferred to the Office for National Statistics in January.
In other news, Aon Consulting has appointed Richard Cox as client relationship director to head up its Birmingham office with immediate effect.
Cox takes over from actuary John Scott, who relinquished this position “to focus on the complex needs of employers who provide final salary schemes to their employees”, said Aon in a statement.
A key priority for Cox will be building on existing relationships with Birmingham’s “pool of professionals”, including solicitors and accountants.
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