UK - Construction giant Aker Kvaerner is severing its ties with Capita Hartshead and bringing its pensions administration back in-house.
The scheme’s administration department has been outsourced for nine years.
Recruitment firm Sammons has now been enrolled to hire staff for the firm’s new administration department, which should be in place by April next year.
Aker Kvaerner is currently looking to appoint a pension fund accountant, a payroll supervisor and eight pension administrators for the new department.
The £1.2bn Kvaerner Pension Fund has around 30,000 members including 2000 active employees and is advised by Lane Clark & Peacock.
Mothercare is also bringing its pension scheme administration back in-house.
Heath Lambert Consulting currently runs the scheme’s administration.
The moves follow BP’s surprise decision last year to bring the administration of its £9bn scheme back in-house – cutting short a 10-year contract with its administrator, Aon Consulting.
BP programme director Graeme Roy explained: “There’s much more of a business focus on pensions, investment and administration. BP wants to take more of a controlling interest in pensions and seek ways to improve customer service.”
Mercer Human Resource Consulting European partner Robert Plumb said a number of firms were considering their admin options.
He said organisations and trustees liked to feel that they had more control but in some cases pension schemes had simply become disillusioned with their third party administrator and the move back in-house was an act of last resort.
Plumb added: “There have been quite a few cases of trustees and employers changing third party administrators.
“This is often driven by some sort of dissatisfaction, and some schemes have gone a step beyond and decided to bring the whole thing back in-house.”
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.