'Substantial' savings for adviser sharing councils

In most cases, the deals involve a handful of authorities drawing up a shortlist of accredited providers of a service. This can then be used by all, instead of undergoing several individual procurement exercises.

This summer, the first national framework for procuring pensions advice in this manner will be settled, having been driven by Norfolk County Council and the Department for Communities & Local Government.

Croydon Council led a similar deal with four other London boroughs last year, but created a shortlist of just one adviser – Hymans Robertson – for all available services.

And the Bristol-based Environment Agency has teamed up with seven nearby councils in the south-west of England and picked a panel of four firms – Hymans Robertson, Barnett Waddingham, Mercer and JLT – with responsibility for investment, benefits and actuarial services.

This deal is only open to the original participants, whereas the national framework – which involves eight ‘at-launch’ authorities – will allow any other English authority to join.

At the moment the panel will involve two sets of three or more advisers – one group providing benefits advice and the other actuarial services.

A third tranche for investment advice is likely after the initial deal has been completed.

Nicola Mark, head of pensions at Norfolk County Council, said it could provide participating authorities with “substantial” savings.

Meanwhile, Richard McIndoe, head of pensions at Strathclyde, said Scottish local government pension scheme funds are actively working on tendering for an equivalent north of the border.

Councils have been under pressure to cut costs since the 2010 general election and currently use such framework ventures for a raft of services, from legal representation to buying stationery.

And the move follows Lord Hutton’s report into public sector pensions, which recommended councils “closely monitor the benefits associated with the current cooperative projects within the Local Government Pension Scheme, with a view to encouraging the extension of this approach, if appropriate, across all local authorities”.