TCS named as NEST administrator

Tata Consultancy Services has been confirmed as the administrator for the National Employment Savings Trust (NEST).

TCS became the only bidder left in the race after Great-West Retirement Services (Europe) withdrew from the competitive dialogue process in December last year.

It came just weeks after Logica UK pulled out of the running for the personal accounts administration contract.  Danish pension fund and administration provider ATP Group also decided to withdraw in October last year.

At the time of GWRS's withdrawal Liberal Democrat pensions spokesman Steve Webb said the TCS "had the government over a barrel" and questioned whether the contract would provide value for money.

The Personal Accounts Delivery Authority (PADA) says the contract with TCS will be signed later this month.

The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer NEST.

Prior to the expiry of the first stage, a decision will be made on whether to proceed with the contract for the remainder of the contract term.

PADA chief executive Tim Jones said: "This is excellent news. As we proceeded through our detailed procurement process TCS emerged as an extremely strong bidder, both in terms of their capabilities in pension administration and in their ability to provide value for money for NEST members. Signing the contract early, in stages, allows us to get on with our work to deliver NEST."

Pensions minister Angela Eagle congratulated TCS on its appointment.

She says: "Together with automatic enrolment, NEST will help millions of people save for their retirement, with a guaranteed employer and government contribution."

Tata Consultancy Services chief executive officer and managing director N. Chandrasekaran says: "TCS is delighted to be confirmed as the preferred bidder to deliver the NEST scheme administration solution and services.

"This project will make a difference to millions of people in the UK and we are fully committed to it. Our selection as the preferred bidder demonstrates our strong domain and solution expertise and highlights our commitment to the UK public sector.

"We are happy to be part of a project that benefits the broader UK economy by helping create real value for UK society and delivering world class services to its citizens. "