Pada intends to sign a contract with TCS later this month, before the general election.
The Conservatives are planning to review the Nest scheme if they win the election and Work and Pension Shadow Secretary Nigel Waterson has said it is imperative contracts are not signed before then.
Pada revealed in December that Great-West Retirement Services had withdrawn from the administrator bidding process leaving just Tata in the running. The Liberal Democrats claimed Tata had Pada “over a barrel”.
Logica UK withdrew from the competitive dialogue process for the contract in November.
The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer Nest.
Prior to the expiry of the first stage, a decision will be made on whether to proceed with the contract for the remainder of the contract term.
Pada chief executive Tim Jones says: “This is excellent news. As we proceeded through our detailed procurement process TCS emerged as an extremely strong bidder, both in terms of their capabilities in pension administration and in their ability to provide value for money for Nest members.
“Signing the contract early, in stages, allows us to get on with our work to deliver Nest.”
Minister of State for Pensions and the Ageing Society Angela Eagle says: “I congratulate TCS on their success in the competition to provide the scheme administration services for Nest, which will be central to the new pensions landscape.
“Together with automatic enrolment, Nest will help millions of people save for their retirement, with a guaranteed employer and Government contribution.”
Tata Consultancy Services chief executive N. Chandrasekaran says: “TCS is delighted to be confirmed as the preferred bidder to deliver the Nest scheme administration solution and services.
“This project will make a difference to millions of people in the UK and we are fully committed to it. Our selection as the preferred bidder demonstrates our strong domain and solution expertise and highlights our commitment to the UK public sector.
“We are happy to be part of a project that benefits the broader UK economy by helping create real value for UK society and delivering world class services to its citizens.