On the go: The Department for Education has launched a tender for administration services for the Teachers’ Pension Scheme, as Capita’s contract is due to end in 2025.
According to the tender notice, published on August 20, the new administrator will be appointed for a 10-year contract worth £185m, with an option for a five-year extension.
The new administrator will be required to work with DfE “to ensure the regulations remain up to date and appropriate”, and adapt the administration of the scheme to ensure it complies and supports any regulatory changes, such as the McCloud remedy.
“It is essential therefore that the contractor is proactive in monitoring, analysing, and adapting to new legislative requirements, ensuring the scheme continues to adapt appropriately,” the document stated.
The government is also looking for an admin that can provide “an effective, fully digital, personalised service” to its members, it added.
Currently, TPS is administered by Capita, which saw its contract extended for four years in 2020.
The admin company has been in charge of the public-sector scheme’s admin for more than 20 years.
However, the calculation of pensions has been a stumbling block for the provider, which underpaid up to 93,000 TPS members between 2011 and 2015.
A rectification project was launched in 2017 to correct the error, which occurred when retirement factors dependent on HM Treasury data were not applied to certain members’ payment sums.
Additional reporting by Benjamin Mercer
