Pada announced this morning that Tata Consultancy Services was the successful bidder for the National Employment Savings Trust scheme administration services and that it intends to sign a contract with TCS later this month, before the expected general election date in May.
Speaking to Money Marketing, Conservative Shadow pensions minister Nigel Waterson (pictured) says he is “amazed” that the contract will been signed so quickly and stressed that this would not inhibit any Tory review of the scheme should they gain power.
He says: “We are amazed that when the implementation date seems to be getting further away this contract is being signed in such a hurry. The original timetable was for this to happen in late June.
“But we wish to make it clear our review of Nest should we win the election will not be constrained in any way by any contract signed by this Government in its dying days.”
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Pada revealed in December that Great-West Retirement Services had withdrawn from the administrator bidding process leaving just Tata in the running.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.