TPR extends partnership with Capita for an additional three years
Monday 4 July 2016
The Pensions Regulator has agreed to extend its partnership with Capita for a further three years to ensure the continued successful roll-out of automatic enrolment to small and micro employers.
The contract extension is worth an additional £37 million over three years and will run from October 2018.
Capita has been working with TPR since 2011, delivering direct communications to employers who are preparing for automatic enrolment. So far more than 140,000 employers have completed their duties, resulting in more than six million people being put into a workplace pension.
TPR and Capita have worked in partnership to deliver a tailored approach to communications that is helping to deliver compliance rates of more than 90% amongst small and micro employers.
Under the extended contract, Capita will continue to deliver high-volume employer communications both to employers yet to implement automatic enrolment and to employers who have already undergone the process and will need to re-enrol staff.
Capita will also continue to administer enforcement communications including compliance notices.
TPR continues to be responsible for the automatic enrolment strategy and policy and the overall approach to communications and compliance and enforcement including prevention and detection activities.
Lesley Titcomb, Chief Executive of The Pensions Regulator, said: “Our automatic enrolment communications approach is working. The continuation of our partnership with Capita will ensure stability and consistency, taking us to the point where all existing employers will have undergone automatic enrolment.”
Andy Parker, Chief Executive of Capita plc, said: “The extension of our contract with The Pensions Regulator reflects our strong partnership ethos and further demonstrates the value Capita continues to bring to public sector projects.”
- TPR maintains control of all strategic decisions, compliance and enforcement policies and guidance, as well as dealing with proactive deterrence, prevention and detection activities, case investigations and enforcement actions. All education campaign material, including guidance, letters and direct mailings, will be agreed in advance by TPR.
- Capita will be responsible for those high-volume communications which TPR does not have the scale to deliver entirely in-house.
- Capita will have a role in administrating enforcement activities which will follow an agreed process in line with TPR’s policies and guidance. Employers that have not completed their declaration of compliance will receive a compliance notice and, where non-compliance persists, a fixed penalty notice.
- The £37 million contract extension value does not include VAT.
- TPR is the regulator of work-based pension schemes in the UK. Its statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).
Rebecca Sandles 01273 811870
Ciara Bridge-Butler 01273 662018