NHS pensions admin deal up for grabs

A notice published by the department outlines requirements for the transformation and delivery of the scheme’s administration and the electronic staff record, both of which are closely linked.

The DH said the new contract would provide an opportunity to update its delivery in line with the move to a career average arrangement and with auto-enrolment, as well as a chance to make more use of modern technology.

“Our contracts for the administration of the NHS pension scheme will come to their natural end in 2015. ,” said a spokesperson for the department.

Kim Gubler, a pensions administration consultant, said auto-enrolment would be a key factor when awarding the contract.

“Auto-enrolment has to be a significant consideration. It obviously depends on what they’re going to use as a vehicle [for AE] but I don’t think anyone can discount it,” she said.

“The take-up rate [for pensions] is quite high in the NHS, but there will still be the opt-out period and everything that has to be done within that, and that puts quite a strain on any organisation.”

The current deal for the service is partially outsourced to Xafinity Paymaster and the Business Services Authority – an arms-length body to the DH.

Xafinity has confirmed it will bid for the new contract. Pensions administrator Capita Hartshead declined to comment on whether it will try to clinch the deal.

According to Gubler, it would be a surprise if Xafinity was not kept on as the supplier given the experience it has in the area and the fact there are not many suppliers operating in the same space.

“I would expect that Xafinity would negotiate pretty hard to keep the client without shooting themselves in the foot,” she said, adding that losing such a key contract would hit the firm’s bottom line.

A supplier conference for potential bidders is being held by the DH in London tomorrow (September 18). 

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