RPMI appointed TPA for MPs DB scheme
UK - RPMI has been appointed to provide the pension administration services to the House of Commons Parliamentary Contributory Pension Fund (PCPF).
The mandate, which begins in June, allows the third party administration firm, a subsidiary of Railway Pensions Trustee Company, to provide administration services for the defined benefit fund which has around 2,000 members who are or gave been members of Parliament, including ministers and other office holders.
Sir John Butterfill, MP and chairman of the scheme's trustees, said RPMI had demonstrated a "strong commitment to quality and accuracy" and shown "that they understand the needs of Parliament and can deliver a high standard of pension service for our members".
"This low risk and member focused approach is something that fits well with our requirements for the administration of the fund," he added.
The PCPF, with assets of £278.6m (€374.5m ) as of March 2005, currently requires members to contribute around 10% of their salary while benefits accrue at a rate of 1/40th, however the Senior Salaries Review Board (SSRB) recommended in January that the accrual rate should increase to 1/60th while costs should be shared 50-50 between members and the scheme .
In addition, David Cameron, leader of the opposition Conservative party, has claimed the PCPF is "very generous" and suggested it should be closed to new members who would then be placed into a defined contribution scheme. (See earlier IPE.com story: MP seeks closure on pensions 'apartheid')
David Maddison, client services director at RPMI, said "This is an exciting opportunity
for us to work with this high profile client and we are very pleased that they chose us
over the competition. We followed a rigorous tender process and the fact we have
been chosen is a testament to the quality of the services that we offer."
This is the first mandate RPMI has been awarded for administration services since it first confirmed to IPE.com in August that it is its intention to expand its remit beyond railway clients. (See earlier IPE.com story: RailPen pushes into non-railway administration)
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