Nest Corporation has confirmed its long-term contract with Tata Consultancy Services (TCS) for the administration of the pension scheme until 30 June 2020, with the option to extend for up to five years beyond then.
The trustee body of the national employment savings trust (Nest) has also confirmed the 10-year fund administration contract with State Street Corporation. The contract runs until 24 October 2020, with the option to extend for up to five years beyond this.
TCS’ contract covers all aspects of scheme administration, including web-based enrolment, record keeping, contribution collection and details of each individual’s retirement pot.
Meanwhile, State Street Corporation will manage the movement of members’ contributions from the scheme administrator (TCS) to the appropriate fund managers, according to Nest’s investment strategy.
Lawrence Churchill, chair of the Nest Corporation, said: “This is the first of a series of announcements Nest will make over the coming months, as we complete our preparations for accepting business from volunteer organisations from the second quarter of next year.”
Tim Jones, chief executive at Nest, said: “I am delighted State Street Corporation is partnering with Nest. [It] has a considerable international track record and it is exciting to have it on board.”
Steve Webb, minister for pensions, said: “I welcome this contract as the next significant milestone for workplace pension reforms and automatic enrolment.
“We are on track for delivery of the reforms from 2012. Nest will offer access to a good quality workplace pension scheme to many people who would not otherwise have the opportunity to save for their retirement.”
N. Chandrasekaran, chief executive officer and managing director at Tata Consultancy Services, added: “TCS is delighted the government and Nest have chosen to move forward with the second stage of the scheme administration service contract which continues to build on the work already started in stage one.
“TCS believes this project will have a significant and positive effect on millions of people in the UK in helping them save for their future. We are fully committed to the project and believe it will create real value for UK society and will deliver a world class product for its citizens.”
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