UK - The London Borough of Waltham Forest is seeking a provider of pensions administration services for its £444.1m (€556.8m) pension fund.

The pension fund, which fell in value by £28.2m in the year to 31 March 2008, currently employs Capita Hartshead to provide administration services to the scheme, including the establishment of a specific website for the scheme.

Waltham Forest is now re-tendering the contract, which will require the successful applicant to provide "all functions associated with the administration of the prevailing local government pension scheme regulations".

The contract, valued at £1.5m, also involves completing all necessary calculations - including final pay - of all active, potential and deferred members as well as pensioners and where relevant ex-members of the scheme.

Waltham Forest also requires the pensions administrator to produce seminars, road shows, information bulletins, newsletters, scheme guides and other publications, and also provide and maintain a specific council pension scheme website and all other IT facilities necessary for running the pension scheme.

The tender notice revealed the contract is for an initial six years, although the pension fund does have the option of extending it for a further two years "subject to satisfactory performance".

Waltham Forest overhauled its investment strategy in July 2007 as it moved from two balanced managers to six specialist managers for particular asset classes, including European and global property mandates and a Global Tactical Asset Allocation (GTAA) portfolio managed by Nordea. (See earlier IPE article: Waltham Forest completes overhaul)

Latest figures from the pension fund's annual report for 2007/08 showed the value of the scheme's assets fell from £472.3m at 31 March 2007 to £444.1m a year later, as the impact of the credit crunch in the final quarter of the financial year resulted in "diminishing returns" of -7.1%, to produce an overall negative investment return of -5.6% against a benchmark of -4.4%.

The closing date for submissions for the role of pensions administrator is 1 December 2008, and further details can be obtained from the strategic procurement team at Waltham Forest council.

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