Bank of England Brings in New Actuary for King’s Pension

(January 6, 2012)  — The Bank of England Pension Fund has replaced Towers Watson as actuary for its £2.5 billion defined benefit scheme as its triennial valuation falls due.

UK firm Punter Southall was awarded the contract on Tuesday after a six month tender period, a spokesman for the Bank confirmed to aiCIO.

The firm beat five other firms to win the mandate to work on the bank’s non-contributory DB pension fund – it closed to new members in autumn 2007. Notable members of the fund include the Bank’s Governor Mervyn King and various Monetary Policy Committee members, who are responsible for setting interest rates.

The Bank of England, which has control over much of the UK’s finances, announced that Punter Southall would provide “the IAS 19 valuation of the scheme, triennial and interim valuations of the fund and ad hoc advice to both parties on matters such as tax, regulation and compliance updates and investment and governance advice”, the mandate announcement said.

At the end of February last year, the scheme was worth £2.5 billion, according to its annual report, with around the same level of liabilities. The fund’s triennial valuation was scheduled to begin before the end of February last year, according to its annual report. At the last triennial valuation – before the financial crisis, in February 2008 – the fund’s assets were worth £2.2 billion.

Punter Southall has been awarded the contract on a three year basis, but there are two additional extensions available three years each should the consultant’s work be satisfactory.

Towers Watson confirmed its dismissal – Punter Southall declined to comment.