Actuarial Services Tender

Actuarial Services Tender

Northumberland County Council.

UK-Morpeth: actuarial services

2012/S 27-043946

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

Northumberland County Council
County Hall, Northumberland
Contact point(s): Commercial & Procurement Services
For the attention of: Mark Dodd
NE61 2EF Morpeth
UNITED KINGDOM
Telephone: +44 1670533127
Fax: +44 1670534158

Internet address(es):

General address of the contracting authority: www.northumberland.gov.uk

Address of the buyer profile: http://www.mytenders.org/search/Search_AuthProfile.aspx?ID=AA22148

Further information can be obtained from: Northumberland County Council
County Hall, Northumberland
For the attention of: Mark Dodd
NE61 2EF Morpeth
UNITED KINGDOM
Telephone: +44 1670533127
Fax: +44 1670534158
Internet address: www.northumberland.gov.uk

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: Northumberland County Council
County Hall, Northumberland
For the attention of: Mark Dodd
NE61 2EF Morpeth
UNITED KINGDOM
Telephone: +44 1670533000
Fax: +44 1670534158
Internet address: www.nepoportal.org

Tenders or requests to participate must be sent to: Northumberland County Council
County Hall, Northumberland
For the attention of: Mark Dodd
NE61 2EF Morpeth
UNITED KINGDOM
Telephone: +44 1670533000
Fax: +44 1670534158
Internet address: www.nepoportal.org

I.2)Type of the contracting authority

Regional or local authority
I.3)Main activity

General public services
I.4)Contract award on behalf of other contracting authorities

The contracting authority is purchasing on behalf of other contracting authorities: no

Section II: Object of the contract

II.1)Description
II.1.1)Title attributed to the contract by the contracting authority:

Provision of actuarial services to Northumberland County Council.
II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 6: Financial servicesa)Insurances services b)Banking and investment services
Main site or location of works, place of delivery or of performance: Northumberland County Council.
NUTS code UKC21

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves a public contract
II.1.4)Information on framework agreement
II.1.5)Short description of the contract or purchase(s)

Tenders are invited by Northumberland County Council from suitably qualified organisations to provide actuarial services to fulfil the role of “fund actuary” to Northumberland County Council Pension Fund, as required by the LGPS regulations. The work undertaken on behalf of the Council is to add value to its pension management, and ensure that the Council complies with the relevant pension fund legislation.
II.1.6)Common procurement vocabulary (CPV)

66519600

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): yes
II.1.8)Lots

This contract is divided into lots: no
II.1.9)Information about variants

Variants will be accepted: no
II.2)Quantity or scope of the contract
II.2.1)Total quantity or scope:

The actuarial consultant chosen will be required to provide actuarial services in accordance with regulations and statutory/non-statutory guidance on best practice relating to the administration of the Northumberland County Council Pension Fund (NCCPF), a LGPS fund. It is essential that the actuary to the Fund should have excellent communication skills with an ability to provide timely information in a format and level appropriate for the understanding of the Northumberland County Council Pension Fund Panel and other advisers to the Fund.
It is expected that the actuarial consultant will have considerable experience of the local government pension scheme (LGPS) gained from providing actuarial services to a significant number of administering authorities within the scheme. In addition, the appointed actuarial consultant should be able to demonstrate active engagement in the development of the regulations of the LGPS by involvement in working bodies and responses to discussion documents and statutory consultations.
It is expected that the actuarial consultant will have experience of other pension schemes administered by local government such as the fire schemes and the unfunded LGPS scheme.
Services required may include:
Carrying out the triennial actuarial valuation of the pension fund beginning with the valuation as at 31.3.2013. The report is to be provided as a PDF version of the final report. The valuation should include individual fund and deficit breakdown by employer (including detailed breakdown of employers contribution rate at employer level). The valuation may be required to be produced using 2 funding targets relating to:
1. Scheme employers (scheduled bodies) and admission bodies where a scheme employer has agreed to subsume the liabilities and assets on cessation;
2. Admission bodies which are likely to become orphaned on cessation.
Pooling of certain employers may also be required.
The valuation service should provide the following:
Initial terms of Reference document.
Specification of data requirements.
Meeting to discuss the proposals.
Assumptions paper covering assumptions, funding strategy, estimated results.
Take on of data.
Review of data.
Correspondence on any data queries.
Experience analysis.
Proposals for new demographic assumptions.
Calculations.
Initial whole of Fund results letter (ongoing basis, low risk basis, maximum risk basis).
Final results letter including employer rates (based on previous valuation funding strategy and rate structure).
Formal Report and certificates.
Attendance at meeting to present the valuation results.
Note: there are 11 scheduled bodies and 20 admitted bodies with active members in the NCCPF.
Provision of cash flow plans as part of the valuation process, if requested.
Providing interim valuation updates with actuarial monitoring of the fund’s overall funding level as required, (normally quarterly).
Providing valuation reports for IAS19/FRS17 (accounting purposes). The service should be designed to minimise administrative work for the Administering Authority. The service should have the following features:
Standard deliverables.
Terms of reference letter for scheme employers including:
Explanation of process for the various parties.
Update on what’s new.
Explanation of any technical issues arising.
Employer requirements spreadsheet.
Fee schedule.
Tailored assumptions letter for each scheme employer based on the weighted average duration of the liabilities.
All necessary calculation work based on roll forward method.
Provision of fully populated draft disclosure.
Provision of FAQ supplement.
Provision of standard response letter to auditor’s queries.
Note: in 2010/11 15 separate employers requested IAS19/FRS17 disclosure information from the NCCPF actuary.
Preparing an actuarial statement for the annual Fund report & accounts including a report for IAS26.
Performing bulk calculations, as required, for transfer values in and out of the fund, forfeiture of benefits, capitalisation of added years etc.
Helping to produce the funding strategy statement and financial plan.
Calculating employers’ rates and bonds for admission bodies, assessment of comparable pension schemes, provision of ill health threshold and evaluation of the admission body’s liabilities at the termination of the agreement.
Assisting in the evaluation of additional voluntary contribution (AVC) providers,
Ad-hoc actuarial advice for individual retirements (e.g. chief executive) including pension tax implications.
Providing general news updates regarding regulatory and legislative changes.
Ad-hoc technical guidance relating to the Fund regulations.
Attending officer meetings and member meetings.
Attendance at and presentation to the annual employers’ meeting for the NCCPF.
Other actuarial services as are required including giving advice at the request of the Northumberland County Council Pension Fund Panel.
The triennial valuation report may be required as a web (in approved web display format) version of the final report.
The Administering Authority will request certain information to pass on to a third party; permission to distribute actuarial advice to the third party should not be unreasonably denied.
Ad-hoc actuarial services for other schemes administered by Northumberland County Council, such as the fire schemes and unfunded compensatory added years schemes.
In line with the recommendations of the Morris Report 2005 (review of the actuarial profession) the actuary will be expected to help the Northumberland County Council Pension Fund Panel address any ‘understanding gap’ with regards to the actuarial advice provided. The actuary will be required to have proficient verbal and non verbal communication skills and be capable of communicating at an appropriate level when addressing the Pension Fund Panel. In particular the actuary must be able to explain the appropriateness of his/her choice of actuarial calculation methods and assumptions so as to ensure the officers’ and Pension Fund Panel’s ability to scrutinise the advice and make informed decisions.
As part of the role the actuary will be required to liaise from time to time and or attend meetings with the other advisers to the Fund. The actuary must be able to communicate with the other advisers at an appropriate level both verbally and non verbal.
The Northumberland County Council Pension Fund Panel is keen to promote better understanding of the Fund by enhanced communication to all interested parties. As part of this enhanced communication the actuarial valuation and other actuarial reports may be made generally available. It is therefore expected that these will be written in such a way as to facilitate understanding by third parties.
II.2.2)Information about options

Options: no
II.2.3)Information about renewals

This contract is subject to renewal: no
II.3)Duration of the contract or time limit for completion

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: no
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: Full details of the information to be provided are detailed in the pre-qualification questionnaire which must be sought, completed and returned by the closing deadline.
III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: Full details of the information to be provided are detailed in the pre-qualification questionnaire which must be sought, completed and returned by the closing deadline.
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
Full details of the information to be provided are detailed in the pre-qualification questionnaire which must be sought, completed and returned by the closing deadline.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts
III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: yes
Reference to the relevant law, regulation or administrative provision: Organisation is regulated by the Institute of actuaries or that your actuarial staff are individually regulated by the Faculty of Actuaries or Institute of Actuaries, or an equivalent organisation for all services that you would provide as actuary to Northumberland County Council Pension Fund.
III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: yes

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure

Restricted
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged number of operators: 5
IV.1.3)Reduction of the number of operators during the negotiation or dialogue
IV.2)Award criteria
IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document
IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information
IV.3.1)File reference number attributed by the contracting authority:
IV.3.2)Previous publication(s) concerning the same contract
IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Time limit for receipt of requests for documents or for accessing documents: 5.3.2012
IV.3.4)Time limit for receipt of tenders or requests to participate

8.3.2012 – 12:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

23.3.2012
IV.3.6)Language(s) in which tenders or requests to participate may be drawn up

English.
IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: yes
Estimated timing for further notices to be published: 120 months.
VI.2)Information about European Union funds
VI.3)Additional information

Please follow these instructions to electronically register your interest in this contract:
1. Input the following internet address into your web browser: www.nepoportal.org;

2. Go to the suppliers area, click on the link to ‘Log In’ or ‘Register’;
3. If you have a log in, select ‘Log In’, if not select ‘Register Free’;
4. To register against a contract, select the binoculars icon beside the ‘Latest Opportunities’ section;
5. Select Northumberland County Council under organisation;
6. Click on the highlighted link for the contract you are interested ion;
7. Click on ‘Register Interest’.
(MT Ref:85499).

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures
VI.4.2)Lodging of appeals
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:6.2.2012