UK - Northamptonshire County Council Pension Fund is to split its investment and actuarial consulting mandate, currently held by Mercer.
He added there were no circumstances related to Mercer's performance which had spurred the decision to tender.
The spokesman said: "It is the council's policy and the pension fund administrator's duty to ensure value for money, one approach to this is to ensure that bought in services are open to regular competition."
The pension fund awarded a £56m (US$109.7) fund of hedge funds mandate to Fauchier Partners in 2007.
The fund's total assets under management at the end of June 2007 was £1bn. Its currently holds 34.5% in UK equities 34.5%, 34.5% in overseas equities, 8% in property 7.8% in bonds, 10.2% in gilts and 5% in hedge funds.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.