Two Local Government Pension Scheme (LGPS) funds in the North East of England, Tyne & Wear and Teesside, have announced a strategic partnership through the creation of a shared service for pensions administration.
The two funds, who are responsible for managing £19bn of investments, have confirmed the partnership which will see the creation of a single centre of excellence based in South Shields, employing over 120 staff.
Services will be provided to over 270,000 fund members and nearly 500 employers, making this one of the largest operations in the LGPS.
The announcement follows an open and competitive tender process by Middlesbrough Council, the administering authority of the Teesside Pension Fund, which saw the Tyne & Wear Pension Fund announced as the preferred bidder.
The contract is due to commence next summer following the completion of the legal process and a transition from the current service provider.
Middlesbrough Council Pensions Committee Chair Councillor John Kabuye said: “We are delighted to partner with Tyne & Wear Pension Fund.
“In a competitive process, we were impressed by both their vision and their focus on serving members.
“It is an excellent outcome for our members, employers and local taxpayers that will see the delivery of a high-quality pensions service, in a cost-effective manner.”
Councillor Ken Dawes, Chair of Pensions Committee at South Tyneside Council added: “I’m delighted to be able to strengthen our relationship with Teesside Pension Fund through this partnership.
“This highlights the high-quality capabilities the public sector can deliver, and is a major boost to the North East region. The expanded services deepen our capability and capacity, and this is an excellent outcome for both pension funds as well as being a progressive development for our respective members and employers.”
The Teesside Pension Fund and Tyne & Wear Pension Fund have an existing relationship as partners in the Border to Coast Pension Partnership.
This partnership had previously focused on investments but will now extend into most areas of pensions administration, with the Tyne & Wear Pension Fund providing services to the members and employers of the Teesside Pension Fund.