The Department for Education has appointed The Capita Group to administer the Teachers’ Pension Scheme (TPS).
The seven-year contract, worth £80 million, will start in October 2011 when the current contract, also with Capita, ends.
The TPS has more than 1.6 million members and is the second largest public sector pension scheme in England and Wales.
Capita has been contracted to administer the TPS since 1996, and has driven down the cost of running the scheme by 45%.
Paul Pindar, chief executive of The Capita Group, said: “In addition to continuous improvement in the core administrative services that Capita has been providing to date, the new contract will enhance member engagement and communications to promote knowledge of the scheme, offer new ways of working with employers, and deliver new information technology to further reduce the administrative burden on both members and employers while delivering a cost-effective service.”
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