Award

Administration of the Civil Service Pensions Schemes

THE MINISTER FOR THE CABINET OFFICE ACTING THROUGH CROWN COMMERCIAL SERVICE

This public procurement record has 1 release in its history.

Award

27 Jan 2021 at 22:56

Summary of the contracting process

The Cabinet Office, acting through the Crown Commercial Service, has completed a tender process for the "Administration of the Civil Service Pensions Schemes." This procurement falls under the industry category of pension fund administration services and is situated in the UK. The procurement method employed was a limited procedure, which allowed for an award without a prior public call for competition. The contract, with an estimated value of £44,762,364, was signed on 20 January 2021, and aimed to maintain the administration of civil service pensions amidst ongoing changes due to the McCloud judgment affecting pension scheme reforms.

This tender represents a significant opportunity for businesses specialising in pension administration, particularly those with the technical capabilities to handle complex pension arrangements and compliance with regulatory requirements. Companies that are large and have experience with public sector contracts may find this procurement appealing, especially as the Cabinet Office plans to commence a new procurement exercise in Q2 of 2021 to replace the current contracts for both the Civil Service Pension Scheme and the Royal Mail Statutory Pension Scheme, creating further avenues for growth in this sector.

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Notice Title

Administration of the Civil Service Pensions Schemes

Notice Description

The administration of civil service pensions for more than 1.5 million past and present civil servants and more than 250 employers; the provision of pension payroll and injury benefit services; and services in connection with the Civil Service Compensation Scheme, which provides compensation to civil servants in the event of redundancy.

Lot Information

Lot 1

Cabinet Office is responsible for the management of the Civil Service Pension Scheme (CSPS) and the Royal Mail Statutory Pension Scheme (RMSPS) - the third and sixth largest pension schemes in the UK respectively. The CSPS is currently administered under contract by MyCSP Ltd and the contract is due to expire on 31 December 2021. Additional work has become necessary between early 2021 and mid 2023 In order to allow the contracting authority to meet its obligations in response to the McCloud judgment on the transitional protection elements of the 2015 public sector pension scheme reforms. This cannot be carried out by an alternative provider for economic and technical reasons without causing significant inconvenience or substantial duplication of costs for the contracting authority. Accordingly, the contracting authority has entered into an agreement with MyCSP to extend the contract by two years. The RMSPS is currently administered under a separate contract with Capita, which expires in September 2023. Additional information: Cabinet Office expects to run a single procurement for both schemes. An advert will be published in Q2 of 2021 with contract award in 2022. To inform the procurement, Cabinet Office is undertaking pre-market engagement and would welcome views from suppliers on: Delivery Model, Service Transformation, Transition, Technology, Commercial models and risk appetite.

Procurement Information

Cabinet Office is responsible for the management of the Civil Service Pension Scheme (CSPS) and the Royal Mail Statutory Pension Scheme (RMSPS). MyCSP Ltd administers the CSPS, and the contract expires on 31 December 2021. Additional work has become necessary to allow Cabinet Office to meet its obligations in response to the McCloud judgment on the transitional protection elements of the 2015 public sector pension scheme reforms (the "2015 Remedy"). An alternative provider cannot deliver this work for technical reasons, and without causing significant inconvenience or duplication of costs. The principle technical issue is the need to administer the 2015 Remedy from early 2021 alongside the core scheme administration, which timeline precludes the opportunity to procure and transition the services to an alternative provider. It is expected the 2015 Remedy will take three years to complete. Continuing with the current provider allows the Cabinet Office to meet the immediate needs of scheme members who have already taken pensions and may need to have their pensions adjusted under the 2015 Remedy or who have been denied ill health retirement pensions which may be granted due to the 2015 Remedy. In addition to meeting the needs of those retiring over the coming few years. For a third party to deliver the 2015 Remedy separately from the core pension administration would require substantial duplication of costs and be technically difficult due to the need to; replicate the scheme calculations through a second pension administration system; transition and duplicate scheme data; maintain two parallel databases; and interface data between two administrators to ensure consistent and accurate communication with members and employers to calculate the benefits. Accordingly, Cabinet Office has entered into an agreement with MyCSP to extend the contract by two years and to deliver the 2015 Remedy programme. Cabinet Office expects to commence a new procurement exercise for the administration of both CSPS and RMSPS in Q2 of 2021. As set out in the additional information section, Cabinet Office will carry out pre-market engagement to inform the procurement exercise for replacement CSPS and RMSPS contract(s).

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-028df8
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/001698-2021
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services


CPV Codes

66523100 - Pension fund administration services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£44,762,364 £10M-£100M

Notice Dates

Publication Date
27 Jan 20215 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
20 Jan 20215 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
THE MINISTER FOR THE CABINET OFFICE ACTING THROUGH CROWN COMMERCIAL SERVICE
Contact Name
Pat Robinson
Contact Email
pat.robinson@cabinetoffice.gov.uk
Contact Phone
+44 7711937552

Buyer Location

Locality
LIVERPOOL
Postcode
L3 9PP
Post Town
Liverpool
Country
England

Major Region (ITL 1)
TLD North West (England)
Basic Region (ITL 2)
TLD7 Merseyside
Small Region (ITL 3)
TLD72 Liverpool
Delivery Location
Not specified

Local Authority
Liverpool
Electoral Ward
City Centre North
Westminster Constituency
Liverpool Riverside

Supplier Information

Number of Suppliers
1
Supplier Name

MYCSP

Further Information

Notice URLs

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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