The Personal Accounts Delivery Authority (PADA) has launched the start of its procurement process and is looking for an administrator to deliver personal accounts when they are implemented in 2012.
PADA is expected to announce which firm has been awarded the contract to provide pension administration services for personal accounts and auto-enrolment in the summer of 2010.
The chosen provider will manage the enrolment process, and oversee the collection and reconciliation of contributions of employers and employees. In addition, it will ensure the provision of scheme information, the receipt of data from employers and the agreement of payment schedules. The provider also be responsible for allowing pension savings to be accessed at retirement, managing refunds and complaints, as well as updating member and employer records.
Tim Jones, chief executive of PADA, said: “We are now taking a major step forward in the creation of personal accounts as we embark on selecting a scheme administrator who will work with us to meet the challenges ahead.
“For employers, we will seek to minimise the costs of administering personal accounts by adopting established systems and processes wherever appropriate. For members, we want to ensure personal accounts are simple to access and use. PADA will be seeking suppliers which can demonstrate value-for-money services provision that are secure, innovative and sustainable.”