Two London borough pension schemes have joined forces and appointed the same pension administrator in order to save costs

The London Borough of Hammersmith and Fulham and the London Borough of Brent have chosen Capita Hartshead to administer their funds under a new cost-sharing 'framework agreement'.

The two boroughs, who together have 31,000 members, are the first to have collaborated in appointing a single pensions administration provider. The initiative does not just save the boroughs money but also time, as under the agreement other London boroughs can join without needing to go through the public sector procurement process.

"This is about maximising value for money by doing everything possible to reduce our pension administration costs, while maintaining a quality service," said Cllr Stephen Greenhalgh, from Hammersmith and Fulham.

Steve Birks, director of operations at Capita Hartshead said: "This is a time of great change for public sector pensions, so as well as providing administration services, we will be advising the two boroughs on the impact of these changes."

Birks said that the firm would also work with the boroughs on their communications to increase member engagement, introducing member websites and even "onsite monthly pension surgeries".
The co-operation will start on 1 October and run for four years.

First published 23.09.2011

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