UK - Seven Local Government Pension Scheme funds with £9.9bn ($16bn) under management want to establish a framework contract to share actuarial, benefit and investment services to cut costs.
The framework will see actuarial, benefits and investment services shared by the group in the South West, including the Environment Agency and six other LGPS funds.
Individual schemes will remain separate entities but will share the framework agreement which will be split into actuarial services; benefits services; and investment services.
The Environment Agency is acting as the contracting authority for the framework. Head of finance and pension fund management Howard Pearce said it will avoid duplication of resources for procurement of these services, and is aligned to the government's current agenda of reducing public sector costs.
Pearce said: "Doing an EU tendering exercise is very labour intensive and time consuming and working together as a group of clients saves us time. If people in the market have to deal with seven different tenders at one time that is a huge lot of work for them as well."
If implemented, the framework will be in place for seven years from April next year to March 2018, to cover the two triennial valuation cycles in 2013 and 2016.
Pearce added: "It makes sense to look at this together but individual funds can still have their own identities. Potentially, more funds could come into the framework."
The seven LGPS funds in the group are: the Environment Agency Pension Funds; Bath & North East Somerset Council; Cornwall Council Pension Fund; Dorset County Council; Gloucestershire County Council; Somerset County Council Pension Fund; and Wiltshire Pension Fund.
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