Published date: 16 April 2024

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 26 February 2024, 12pm

Contract summary

Industry

  • Research and development services and related consultancy services - 73000000

Location of contract

EC2Y 5AS

Value of contract

£40,000 to £54,000

Procurement reference

FRC2024-007

Published date

16 April 2024

Closing date

26 February 2024

Closing time

12pm

Contract start date

8 April 2024

Contract end date

30 August 2024

Contract type

Service contract

Procedure type

Open procedure (below threshold)

Any interested supplier may submit a tender in response to an opportunity notice.

This procedure can be used for procurements below the relevant contract value threshold.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

***THIS IS CONTRACT AWARD NOTICE***
The Financial Reporting Council (FRC) regulates auditors, accountants and actuaries and sets the UK's Corporate Governance and Stewardship Codes. We seek to promote transparency and integrity in business; our work is aimed at investors and others who rely on company accounts, audit, and high-quality risk management.

The FRC sets and regularly reviews Actuarial Standard Technical Memorandum 1: Statutory Money Purchase Illustrations ("AS TM1"). AS TM1 specifies the assumptions and methods to be used in the calculation of statutory illustrations of retirement income from 'money purchase' pensions, also known as 'defined contribution' (DC) pensions. AS TM1 requires these illustrations to use assumptions that differ depending on the volatility of the funds in which the DC pension is invested.

For a UK Defined Contribution ('DC') pension scheme the selection of the default investment strategy that is offered to scheme members is one of the most important decisions for pension scheme decision-makers. This is because many/most scheme members will follow the default strategy, particularly individuals without the financial knowledge and/or confidence to make an active choice.

UK DC schemes typically use a form of 'lifestyle' strategy for the default fund, whereby the investment strategy for an individual changes over time depending on how far away they are from retirement age. We understand there are a wide range of different types of 'lifestyle' strategy used by UK pension funds. We have commissioned this research in order to better understand the strategies used, to inform our policy-making activities in relation to the assumptions and methods as set out in AS TM1.

This research project is separate from the current review of the accumulation rate assumptions in AS TM1 v5.0 which was consulted on in November 2023; rather it is intended to inform and support the FRC's longer term strategy and decision-making in relation to AS TM1.

This research project will involve data collection and analysis to provide information on the default investment strategies currently offered by UK DC pension schemes, noting that common practice for default DC investment strategies has evolved, particularly since 'pension freedoms' were introduced in 2015. This data and analysis will support the FRC in setting actuarial standards that are appropriate for the current environment of UK DC pension schemes.
• The project's core objective is to understand the nature of the various default investment strategies provided to UK scheme members and provide the FRC with statistically significant data on this.
• As a second objective, we are also seeking an understanding of why those strategies are provided to scheme members.

The FRC does not anticipate bids exceeding £54,000 incl. VAT.


***THIS IS CONTRACT AWARD NOTICE - THIS TENDER OPPORTUNITY IS CLOSED***

More information

Previous notice about this procurement

Research Services : Research on UK Defined Contribution Pension Scheme Default Investment Strategies

  • Opportunity
  • Published 7 February 2024

Attachments

Additional text

***THIS IS CONTRACT AWARD NOTICE***

Award information

Awarded date

28 March 2024

Contract start date

8 April 2024

Contract end date

30 August 2024

Total value of contract

£42,770.21

This contract was awarded to 1 supplier.

IFF Research Limited

Address

St Magnus House
3 Lower Thames Street
London
EC3R 6HD

Reference

Companies House number: 00849983

Value of contract

£42,770.21

Supplier is SME?

Yes

Supplier is VCSE?

No

Additional details

This is a Contract award notice

About the buyer

Contact name

Head of Procurement

Address

8Th Floor,125 London Wall
LONDON
EC2Y5AS
England

Telephone

020 7492 2300

Email

procurement@frc.org.uk

Website

https://www.frc.org.uk