Hertfordshire pension funds to save £1.6m through outsourcing

PensionersTwo Hertfordshire County Council pension schemes will be saving £1.6m over the next eight years after appointing the London Pension Fund Authority (LPFA) to run their administration and pensions payroll contract.

The contract covers the Local Government Pension Scheme and the Hertfordshire Fire-fighters’ Pension Schemes. It’s an indication that pension funds are increasingly recognising the value of outsourcing.

The LPFA said it identified key challenges facing the pensions administration market and put together a solution that delivers real efficiencies combined with effective service levels.

This contract win takes the total number of members under LPFA’s third party administration to 180,000 and marks a new direction for the organisation, which previously solely concentrated on the London market.

LPFA chief executive, Mike Taylor, said: “The success in winning this contracts indicates that boroughs and county councils are looking for pensions specialists when they consider outsourcing.”

©2011 funds europe