UK - A UK public sector scheme is looking to complete a £230m (€257m) buy-in of its pensioner's liabilities, with Mercer selected as the consultant to oversee the process.

The £454m West Midlands Integrated Transport Authority pension fund - part of public transport group Centro - reported a £71m deficit according to its most recent actuarial valuation from March last year, with the tender noting that employees from one part of the multi-employer scheme accounted for 95% of all deficits.

The bulk annuity would only cover its current pensioners, with the £230m cost based on figures from the March 2010 valuation.

The tender, posted as the public scheme had to comply with European Union regulations, stressed that it was part of a risk management exercise by the two principal employers, West Midlands Transport Limited and Preston Bus.

It noted that member data would be made available to those invited to tender. "The Authority will require a quotation based on no indexation of pensions.

"The successful organisation will not be required to administer the individual pension records," which it said would continue to be administered by Wolverhampton City Council, "but will be required to liaise with the administrator with respect to the pensioners included in the insurance contract."

Interested parties have until 24 November to make expressions of interest through Mercer, the scheme's actuary.