UK - The near-£250m Parliamentary Contributory Pension Fund (PCPF), the UK's pension scheme for Members of Parliament, may be looking at a more specialist investment set-up.
The fund has recently tendered for a new investment adviser to carry out a review before year-end, although incumbents Hewitt Bacon & Woodrow are likely to reapply. The deadline for expressions of interest is August 28, 2002. The contract will be for 3 years in the first instance, with an option to extend. Invitations to tender will be dispatched by September 3, 2002. Assets are currently divided on 50/50 basis between Baring Asset Management and Cazenove Fund Management who each hold balanced mandates. But PCPF may be looking for greater diversification, said a spokesman, although no further details were offered at this stage. More rfps will then follow; the two incumbents will be invited to tender.
The new adviser will also be required to carry out a benchmarking exercise.
The review follows the controversial announcement that MP’s are to the increases their pensions by 25%. Currently, they qualify for a pension worth 1/50th of their salary for each year of service. The new deal would mean that this will rise to a 1/40th; almost 50% of the increase will be funded by the taxpayer.
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