SWEDEN - The Swedish municipality Österåkers has hired SPP Liv Pensionstjänst, the administration arm of the Swedish pension insurance group SPP Livförsäkring AB, for the administration of its pension fund.
The fund was previously administered by KPA, the Swedish market leader in the sector. But the contract came up for review and SPP, the runner up, proved to be cheaper.
"We were satisfied with KPA, just when the contract ended we decided to go for the cheaper SPP," said the council's purchasing manager Elisabeth Karlsson.
The contract, worth SEK1.77m (£112,000) also involves the two neighbouring councils, Vaxholm and Danderyd.
Gunilla Stehlin-Isaksson of SPP said "it is economically more convenient for communities work together in things like this, though they all have their own contracts with SPP."
Karlsson added: "This is only for the administration of the pension fund. Many suppliers have been interested in placing our money, and we might look into doing a public solicitation of the actual financial placement of the fund, but that is for the future."
In June SPP, the former mutually owned pension insurance group that's now part of Svenska Handelsbanken, appointed Kerstin Wahlund and Håkan Sandberg as new members of the board.