As a public body, Pada is procuring services through the public sector procurement processes. Pada expects to make an announcement on the award in the summer of 2010, but is likely to narrow the field down to three providers it wishes to take to the next stage of tender by April.
Services being procured through scheme administration include employer participation, enrolment, collection and reconciliation, cash management, accessing pension savings and the administration of accounts.
Pada says that in the interests of simplicity and minimising costs to both employers and members, it expects the provision of services will generally be through e-channels, including the internet, email, SMS and telephone IVR.
Tim Jones, chief executive of Pada says: “We are now taking a major step forward in the creation of Personal Accounts as we embark on selecting a scheme administrator who will work with us to meet the challenges ahead.
“For employers, we will seek to minimise the costs of administering personal accounts by adopting established systems and processes wherever appropriate. For members, we want to ensure Personal Accounts are simple to access and use. PADA will be seeking suppliers who can demonstrate value-formoney services provision that are secure, innovative and sustainable. I look forward to engaging and working with suppliers who have the same passion and commitment as we do.”
Jeannie Drake, acting chair of Pada says: “The Personal Accounts scheme is being designed with the interests of its members at its heart and will be run on a not-for-profit basis. It will help millions of people enjoy a better retirement. Before we can deliver on our vision, we need to procure the services that will underpin Personal Accounts. The contract for the scheme’s administration will provide the backbone of its successful delivery.”
John Lawson, head of pensions policy at Standard Life says: “There is a very tight deadline for providers to submit, by 19th February. Only the very best providers will go through to the next round of ‘competitive dialogue’. We are likely to see the established tech players in there and possibly some life offices.”