Meeting documents

Pension Fund Committee
Friday, 21 November 2003

PF211103-21

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ITEM PF21

PENSION FUND COMMITTEE – 21 NOVEMBER 2003

APPOINTMENT OF NEW ACTUARY

Report by the Head of Finance

Introduction

  1. In April 2003 Watson Wyatt informed us of their decision to withdraw from providing actuarial services to the local government sector by November 2003. This was reported to Committee in May 2003, seeking approval for the process of selecting a new actuary and to determine the level involvement by Committee. The Committee agreed to approve the process to select a new actuary, subject to consultation with the Chairman and Deputy Chair of the Committee, when appropriate.

  2. Vic Allison, Strategic Director of Resources, West Oxfordshire District Council, offered his help in the process of assessing and selecting a new actuary. This was accepted.

    3. The Process

  3. An advertisement was placed in Official European Journal (OJEC) from this six actuarial firms submitted pre-qualification questionnaires. The evaluation showed that two of these companies did not have the necessary expertise or experience in the local government sector. The remaining four actuarial firms were invited to tender.

  4. All four actuarial firms submitted a tender and these were evaluated against the published criteria. These were all established companies offering similar services but the tender from one of the firms (Hymans Robertson) was significantly higher than the other three, which were at a very similar level. On this basis we invited the three firms to County Hall for interview and to make a presentation about the issues surrounding the 2004 valuation. The three firms were:

    • Mercer Human Resource Consulting

    • Punter Southall & Co. Limited

    • Hewitt Bacon & Woodrow

  1. The interviewers were Barry Phillips, Sally Fox and Vic Allison. Councillor Shouler joined the officers as an observer but did not take part in the discussion following the interviews.

  2. Following interview, the officers agreed unanimously to recommend the appointment of Hewitt Bacon and Woodrow, on the basis that this actuary most fully met the criteria.

    3. RECOMMENDATION

  3. The Committee is RECOMMENDED to approve the appointment of Hewitt, Bacon and Woodrow as new actuaries to Oxfordshire County Council for a period of 5 years with immediate effect.

CHRIS GRAY
Head of Finance

Background papers: Nil

Contact Officer: Sally Fox, Pension Services Manager Tel (01865) 816080

October 2003

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