Pensions IT will stay in public sector

The government is to commission a new IT infrastructure to run its proposed "personal accounts" pensions savings scheme.

In a white paper published last week, the Department for Work and Pensions confirmed that the National Pension Savings Scheme would be set up as a public sector operation.

The move effectively rejects the private sector alternative put forward by the Association of British Insurers, which would have leaned heavily on insurers' existing pension administration systems.

The government's next step will be to set up a delivery authority with the responsibility for choosing the IT systems used to administer personal accounts. Advertisements for a chief executive, a chairman and an executive director for the new body will appear in the new year.

www.dwp.gov.uk/pensionsreform/new_way.asp