UK MP scheme to review investment advisor
UK – The £300m (€475m) Parliamentary Contributory pension scheme, the pension fund for UK members of parliament (MPs) is reviewing its investment advisor Hewitt, Bacon & Woodrow.
The RFP document says a review of the fund’s investment strategy and performance will be carried out once the new consultant has been named later this year. Hewitt, Bacon & Woodrow were unaware of the review.
Following that, the fund will issue a second RFP for investment managers. The fund is encouraging its two current managers, which are unnamed, to re-tender.
The fund came in for some criticism from the pensions industry and trades unions earlier this week when it announced it was increasing MPs pension at a time when many companies are closing DB schemes.
Under the recently-approved change, MPs will accrue benefits at the rate of one-fortieth of their salaries for each year of service instead of the present one-fiftieth, enabling then to claim the maximum benefit after 27 opposed to 33 years of service.