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Havering seeks actuary as DCFS re-tenders TPS admin

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  • Havering seeks actuary as DCFS re-tenders TPS admin

UK - The London Borough of Havering is tendering for an actuarial provider to carry out the triennial valuation of its £283.7m (€313.5m) pension fund in March 2010.

Havering currently employs Hewitt as the fund actuary, however it is re-tendering the contract for an initial period of three years, beginning on 1 April 2010, with the option of a further two-year extension.

The last triennial actuarial valuation in 2007 revealed the scheme had assets of £366.1m and liabilities of £534.6m, resulting in a deficit of £168.1m and a funding level of 68%.

In addition to the triennial valuation, Havering said the responsibilities of the actuarial provider would also include analysis of the fund's performance between valuations, advice on bulk transfers, and ad-hoc technical calculations.

Meanwhile, the Department for Children, Schools and Families (DCSF) is searching for a pensions administrator to take on admin services for the Teachers Pension Scheme (TPS).

The successful supplier will be expected to take on a number of responsibilities, including running, maintaining and supporting the TPS administration service for members and employers and improving communication and the delivery of web-based services.

There are around 1.5 million members and around 2,400 employers involved in the pension scheme. The administration of the TPS was first outsourced by the government in 1996, and then again in 2003 on a seven-year contract. In both cases, the mandate was given to Capita Business Services.

The latest contract has already been extended by one year to 30 September 2011, however the DCSF is looking to tender a new seven-year contract, valued at between £80-90m, with the aim of appointing a provider by October 2010 to allow for any transitional arrangements.

Administration of the scheme was hit by controversy earlier this year, as the government was forced to admit it had overpaid benefits over many years when the account was managed by Xafinity - a problem then inherited by Capita - and was forced to cut payouts to the individuals affected. (See earlier IPE story: Mistake could cut teachers pensions by £100m)

And elsewhere, the London Borough of Kensington and Chelsea (RBKC) has appointed Barnett Waddingham for actuarial services to its £409m pension scheme.

The council began its search for an actuary in March 2009, offering a six-year contract valued at between £250-500,000, alongside the search for a global custodian for the scheme. (See earlier IPE article: Powys seeks global equity replacement)

The closing date for the actuarial tender for Havering council is 19 October 2010, while applications for the administration role for the TPS is 6 November 2009.

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

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