Nest seeks new third party administrator
On the go: Master trust Nest has invited bids to take over the administration of its 8m-member scheme from 2023, as regulations force the scheme to re-tender at the end of its current contract.
Now the largest pension scheme in the UK by membership size, Nest was set up by government to support auto-enrolment, and as such falls under the Public Contracts Regulations 2015, which mirror EU procurement directives on the advertising of contracts, procedures for assessing company credentials, and awarding contracts.
"Nest’s current scheme administration contract with Tata Consultancy Services concludes in 2023 and in accordance with Public Contracts Regulations 2015, the corporation has formally started the process of deciding who will provide its future services," the master trust announced on Monday.
The tender document is hosted on the Official Journal of the European Union site, along with details of the procurement process. Nest members currently have small pots, but could still represent a big opportunity for administrators - by the late 2020s a third of the UK's population are forecast o be Nest members.
Commenting on the announcement, Helen Dean, Nest’s chief executive officer, said: “At Nest we are very proud of what we have accomplished since the start of auto-enrolment in 2012. With the end of staging and phasing, we are now looking to the future for the scheme and the service we provide to our customers.
“The savings sector, technology and customer expectations have evolved significantly over the past decade and this procurement presents an exciting opportunity for Nest to set the course for our service for the next decade.”