The Additional Voluntary Contribution (AVC) Services and Consultancy Services Associated with AVCs Framework, a scheme for local government pension schemes (LGPS), has appointed six firms split across two lots.
The National LGPS framework was launched last week to help pension funds and wider public sector pension schemes swiftly and easily access Additional Voluntary Contribution (AVC) services for their scheme members, and consultancy services to assist with their AVC provision.
Cheshire West and Chester Council, Dumfries and Galloway Council, Glasgow City Council and Leicestershire County Council have worked together to establish the framework, supported by the National LGPS Frameworks team, and procurement and legal specialists from Norfolk County Council.
The framework is split into two different lots:
- Additional Voluntary Contribution Services;
- Consultancy Services associated with Additional Voluntary Contributions.
For Lot 1, the framework appointed Legal and General Assurance Society and Prudential Assurance Company.
Contracts awarded for Lot 1 under the framework may have a maximum total duration of 20 years. National LGPS said that no contract awarded from the framework would be permitted to extend beyond 21 April 2048.
For Lot 2, the framework appointed Aon, Barnett Waddingham, Hymans Robertson and Mercer.
Contracts awarded under the framework have a maximum total duration of four years. National LGPS said that no contract awarded from the framework would be permitted to extend beyond 21 April 2032.
The framework is open from July 2024 until May 2028.
The scheme is part of National LGPS Frameworks, which are a collection of LGPS funds and pools that have been working together since 2012.
National LGPS said that by using the framework funds and pools can save “considerable time and money”.
“Frameworks offer efficient, best practice, regulatory compliant access to a range of qualified specialist providers. By using a framework individual LGPS stakeholders can still define local service requirements but at the same time leverage better prices,” it added.
The LGPS is already collectively benefiting from more than £172m in savings by using the National LGPS Frameworks.
Catherine Pearce, associate partner and head of public sector benefits consultancy at Aon, said the National LGPS Frameworks play a vital role in the delivery of public sector pension services. “Their focus is on assuring quality via a fair process, which benefits all parties.”
Jayne Deeble, senior DC consultant at Aon, added that in a rapidly developing pensions market, it is more important than ever that LGPS funds carry out regular reviews of their AVC provision to ensure that they are continuing to deliver a high-quality and cost-effective service for members.
Graeme Muir, partner at Barnett Waddingham, said the appointment builds on the firm’s long history supporting LGPS funds and authorities in relation to pensions and recognises the important role that AVCs play in helping LGPS members save for their future.
“We believe this framework will help improve value for members across the board from investment options to member engagement and we look forward to supporting Authorities considering their options,” he noted.
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