Tata was the only bidder left in the running after three other companies – Great West Retirement Services, Logica and ATP – all pulled out of the tender process. This led to many in the industry questioning the competitiveness of the contract.
The first stage of the contract, which will be signed later this month, lasts until October 2010 and is set to allow Tata to set up the systems necessary to administer what is expected to become the largest defined contribution scheme in the world. It will also allow the Conservative party, which has vowed to reassess the Nest scheme if it wins the general election, to renegotiate the contract if necessary.
Stage two of the contract is a ten-year agreement to set up and run the Nest systems, with a third stage option of a five-year extension to the contract.
PADA chief executive Tim Jones said: “As we proceeded through our detailed procurement process Tata emerged as an extremely strong bidder, both in terms of their capabilities in pension administration and in their ability to provide value for money for Nest members. Signing the contract early, in stages, allows us to get on with our work to deliver Nest.”
N. Chandrasekaran, CEO and managing director of Tata Consultancy Services, said the company was “delighted” to have won the contract.
“This project will make a difference to millions of people in the UK and we are fully committed to it,” he added. “We are happy to be part of a project that benefits the broader UK economy by helping create real value for UK society and delivering world class services to its citizens.”
Keywords: PADA, NEST, admin, administration, tata, personal accounts, 2012, pension reform
