Nest Corporation has awarded the contract for its fund administration services to State Street Corporation.
The main fund administration contract is for 10 years during which time State Street Corporation will be providing end-to-end fund administration and custody services to the National Employment Savings Trust (Nest).
The contract has been signed in two stages.
The first stage of the contract runs to late November to ensure it joins up with the decision to proceed with the scheme administration contract with Tata Consultancy Services (TCS), which was signed in March 2010.
Nest Corporation is confident TCS is the right supplier to deliver scheme administration services for Nest. However, the Nest trustees, in partnership with government, will make the formal decision in November.
Tim Jones, chief executive at Nest Corporation, said: “We are delighted to have this contract in place. It was a strong competition, and we are now well placed to deliver a first-rate service at low cost to members.
“State Street Corporation has 30 years of experience in the UK and an impressive track record in fund administration.”
Joe Antonellis, vice chairman of State Street Corporation, added: “We are extremely honoured to enter into this long-term partnership with Nest and highly value their confidence in us.
“We look forward to supporting all aspects of their investment servicing requirements as they continue to shape the future structure of defined contribution pensions in both the UK and elsewhere.”
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