Meeting documents

Pension Fund Committee
Friday, 23 May 2003

PF230503-13

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ITEM PF13

PENSION FUND COMMITTEE - 23 MAY 2003

WITHDRAWAL OF WATSON WYATT ACTUARIAL SERVICES

Report by Head of Finance

Introduction

  1. Watson Wyatt have given notice that they are withdrawing from providing actuarial services to local authorities with effect from November 2003. This leaves Oxfordshire County Council in the same position as about 19 other local authorities in having to find a new provider of actuarial services by end October 2003.

    2. The Process

  2. As we are in the same position as many other local authorities there is the potential to share information and to reduce the duplication of work and we have already been in contact with colleagues in other local authorities. However there is the requirement to undertake a formal tendering process, for which there are 3 options:

    1. Open – where an advertisement is placed and any company can request the information. This process takes approximately 2 ½ months;

    2. Restricted – where expressions of interest are sought and a business questionnaire is sent to companies responding to this. The returned questionnaires are evaluated and a shortlist is prepared. Tender documents are then sent to the short listed companies. This process takes approximately 3 months;

    3. Negotiated – where services sought are not easily defined and so negotiations with interested companies are necessary.

  3. The Head of Purchasing recommends the restricted tender process as being the most appropriate.

  4. The cost of using the actuarial services does not exceed the EC financial thresholds; therefore we will place the advertisement for expression of interest in UK journals.

  5. A draft timetable is attached at Annex 1 (download as .xls file). This does not include any reference to Pension Fund Committee involvement in this process. The Committee are asked to decide what level of involvement they wish to have.

    6. RECOMMENDATIONS

  6. The Committee is RECOMMENDED to approve the process to select a new actuary and to decide on the desired level of involvement.

CHRIS GRAY
Head of Finance

Background papers:

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

May 2003

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