Today is another important milestone for the delivery of workplace pension reform. The Personal Accounts Delivery Authority (PADA) has completed its procurement for the scheme administration services for NEST, and will award that contract to Tata Consultancy Services Limited (TCS) later today. PADA plans to sign the contract with TCS later this month.
The 10-year contract has two stages. The first stage runs to October 2010, and enables TCS to begin the activity required to set up and administer NEST. A further decision will be made by October on whether to proceed with the second stage contract for the remainder of the contract term. The contract also includes possible extensions for up to a further five years.
NEST is a critical part of the Government’s pension reforms and, as one of the pension schemes employers will be able to use to fulfil their automatic enrolment duties, will play a major role in supporting low to moderate earners in saving for their retirement.
PADA’s priority has been to secure value for money for future NEST members. I am satisfied this contract achieves that objective, and we remain on track to deliver the reform package from October 2012.