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The National Employment Savings Trust (Nest) has launched a £1.5bn tender to find a new provider for the digital delivery of administration services.
The amount refers to the longest possible contract duration of 18 years, though the minimum term is 10 years. Nest’s existing contract with Tata Consulting Services (TCS) ends in 2023.
Since its launch in 2011 as a public corporation, Nest has become the largest UK master trust, with more than £6bn in assets under management, eight million members and 730,000 employers.
As well as supporting auto-enrolment to pensions, Nest is looking for a supplier that can provide a range of services through digital channels, including collection of pension contributions, provision of access to savings and management of accounts.
Critical success factors that underpin the procurement process for the new scheme administration services include the ability to improve customer outcomes through advances in technologies such as deep data analytics.
Nest said it was crucial to ensure a smooth transition from the current incumbent to the new supplier to protect customer data and assets, hence the extended timeframe.
“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,” said Nest chief executive Helen Dean.
“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,” she added.
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