The Personal Accounts Delivery Authority says the firm decided that providing services for the personal accounts scheme did not “fit with their commercial model”.
Money Marketing broke the news in May that the Personal Accounts Delivery Authority had drawn up a shortlist of four suppliers to administer personal accounts.
Arbejdsmarkedet Tillaegspension was up against a consortium comprising Logica UK, International Financial Data Services and DST Systems as well as Tata Consultancy Services and a team including Great West Retirement Services and Canada Life Group UK.
A Pada spokeswoman says: “ATP Group, which runs Denmark’s national pension scheme, has now withdrawn from this process.
“This is due to a decision that, following our discussions on the detailed requirements, providing services for the personal accounts scheme does not fit with their commercial model. The competitive dialogue process with other bidders is proceeding well. We will provide further updates as and when information becomes available.”
The news comes as the Conservatives voice continued anxieties about the personal accounts scheme.
At an Association of British Insurers conference on Tuesday, Shadow Secretary of State for Work and Pensions Theresa May said: “I am becoming increasingly concerned about the impact of personal accounts. The latest implementation programme has exacerbated that concern.
“The basic question I am asking, and it is something we are trying to look at before the election but we need to have a proper review when we come into Government, is whether there is another way of achieving what was wanted.”