UK - FutureOrg, the public sector organisation due to take over from the UK's 10 regional art boards, has outsourced its pension fund services to the £4.7bn West Yorkshire Pension Fund (WYPF).
The decision to appoint WYPF follows a report by IPN's sister title, Professional Pensions, which revealed that local government pension schemes are looking to take over the administration of smaller schemes to obtain necessary scales of economy.
The Bradford-based fund won the contract after a detailed selection process organised by FutureOrg’s consultant Bacon & Woodrow. This win is the third national client that the WYPF has taken on and follows wins from the 1300-member Children and Family Court Advisory Service and Ofsted last year.
Arts Council of England’s chief executive Peter Hewitt said: “We were impressed by the level of service that the WYPF give their members and we were also impressed by their commitment to doing that UK-wide.”
Larger local authority schemes claim that they can achieve greater economies of scale than small schemes, in some cases reducing pension administration costs by half.
But smaller local authorities have baulked at the move to “regionalise” local authority pension funds. Many claim that small schemes are more successful at managing funds.
Somerset County Council corporate director of finance Chris Bilsland said: “The real issue for employers today is the rising cost of membership and that depends on fund management. So who is best at that? According to the WM Company, that would be Somerset.”
Bilsland said that he would be happy to look at the case of a larger scheme carrying out the scheme’s administration if Somerset could manage the larger scheme’s funds. FutureOrg will add 350 members to the 80,000-strong WYPF scheme.
By Jonathan Stapleton
Businesses are experiencing auto-enrolment data error rates of up to 50%, posing questions over the reliability of pension records, Pensionsync says.
A nationwide survey of committee and local pension board members of the Local Government Pension Scheme has revealed high levels of confidence in all areas of their responsibility.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.