---
title: "Targeted Review of Defined Benefit Pensions and Financial Resilience"
ocid: "ocds-b5fd17-5a1aedae-4331-43ce-a897-e116a035f796"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-5a1aedae-4331-43ce-a897-e116a035f796"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-5a1aedae-4331-43ce-a897-e116a035f796.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-5a1aedae-4331-43ce-a897-e116a035f796.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY"
published: "2018-05-17"
---

# Targeted Review of Defined Benefit Pensions and Financial Resilience

Buyer: WATER SERVICES REGULATION AUTHORITY  
Current stage: Award  
OCID: ocds-b5fd17-5a1aedae-4331-43ce-a897-e116a035f796

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## Summary

The procurement process initiated by the Water Services Regulation Authority focuses on a tender titled "Targeted Review of Defined Benefit Pensions and Financial Resilience." This contract, within the consultancy services industry, is based in the West Midlands and London, England. It is currently in the award stage, having officially been awarded on 23rd February 2018, with a contract period running from 26th February 2018 to 31st March 2018. The procurement method used is selective, and this project has a total value of £70,000, with the end of the tender period recorded as 19th February 2018.

This tender presents opportunities for SMEs with expertise in financial management and pension consultancy services to compete. Businesses that can demonstrate capabilities in assessing pension schemes and providing consultancy in financial resilience, particularly those with experience in the water sector, would be well-suited to engage in this contract. The targeted nature of this review allows for a focused approach in addressing the specific needs of the water industry, making it an ideal opportunity for relevant firms seeking to expand their services in this domain.

## Notice

The targeted review will consider: * How do pension scheme deficits as calculated under International Financial Reporting Standards (IFRS) compare to actuarial deficits calculated under a triennial actuarial valuation in absolute terms and variability? * Have companies used customer funding to the extent provided for at PR09 (and reaffirmed at PR14) to meet deficit repair costs since 2010? * What range of actions have companies taken to manage their exposures to pension liabilities, how effective have these measures been in managing risks and what else could companies have done? * How does the management of the pension deficit in the water sector compare with best practice approaches in other sectors? * What evidence is there that pension schemes have or are moving to CPI or CPIH as the inflation linkage? * Pension costs impact on financial resilience as they reduce the free cash available to meet a company's statutory obligations. A short repair period increases the pressure on free cash while a long period may result in action by the Pension Regulator. Does the essential service provided by water companies and economic regulation underpin the water sector's covenant for pension obligations and strengthen pension scheme resilience? * Rating agencies consider deficits when assessing credit ratings and effectively treat deficits as debt. How should deficits be considered when assessing a company's financial resilience? * Hypothetically, how would pension liabilities be considered under a special administration pursuant to the Water Industry Act 1991 (as amended)? * We would welcome additional comments from the contractors on areas to consider not covered by the above. Scope The scope of this work includes assessing published information on all 17 English and Welsh water and waste water companies' pension schemes and preparing an information request for all companies. Following this review selecting a number of companies which display a variety of actions in managing pension liabilities for further engagement and lead tele-conferences with the selected companies. The number of companies will not exceed 5. To consider and report on the specific questions set out in this ITT, relating to company behaviours and actions associated with pension deficits which have since 2009 been funded in part by customers.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/ac28e335-0373-44bc-b1d5-a060ebd3a1de |
| Notice type | Award Notice |
| Procurement type | Framework |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Call-off from a framework agreement |
| Tender suitability | SME |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 17 May 2018 |
| Submission deadline | 19 Feb 2018 |
| Future notice date | Not specified |
| Award date | 23 Feb 2018 |
| Contract period | 26 Feb 2018 - 31 Mar 2018 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | £70,000 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | WATER SERVICES REGULATION AUTHORITY |
| Locality | BIRMINGHAM |
| Post town | Birmingham |
| Postcode | B5 4UA |
| Country | England |
| ITL 1 | TLG West Midlands (England) |
| ITL 2 | TLG3 West Midlands |
| ITL 3 | TLG31 Birmingham |
| Local authority | Birmingham |
| Electoral ward | Ladywood |
| Westminster constituency | Birmingham Ladywood |
| Delivery location | TLG West Midlands (England), TLI London |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | BARNETT WADDINGHAM |

## CPV Codes

### Divisions

- 66 - Financial and insurance services
- 79 - Business services: law, marketing, consulting, recruitment, printing and security

### Codes

- 66523000 - Pension fund consultancy services
- 79412000 - Financial management consultancy services

## Release History

- 17 May 2018 at 14:11 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/ac28e335-0373-44bc-b1d5-a060ebd3a1de
- 18 Apr 2018 at 15:25 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/ac28e335-0373-44bc-b1d5-a060ebd3a1de

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/ac28e335-0373-44bc-b1d5-a060ebd3a1de
  17th May 2018 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/0112c29a-6775-4e31-a4fa-995ea333da38
  Contract

## Provenance

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