The Pensions Regulator has appointed Capita Group to carry out auto-enrolment employer communications and administration in a 7-year contract worth £105m.
The regulator will communicate with over 1 million employers as part of its role to maximise compliance with the new requirements to auto-enroll staff into a workplace pension scheme.
Auto-enrolment will be introduced on a staged basis between October 2012 and September 2016, depending on employer size.
Under the agreement, Capita will take on responsibility for delivering high-volume employer communications and transactional processes which the regulator does not have the scale to manage in-house.
These include distributing campaign messages to employers, intermediaries and advisers, notifying employers ahead of their auto-enrolment duty dates, managing the process whereby employers register with the regulator and operating a customer contact centre.
Capita will also perform limited enforcement activities including administering compliance notices and, where non-compliance persists, fixed penalties.
More complex enforcement activity, strategic communications decisions, and compliance and enforcement policies remain under the control of TPR.
Money Marketing first revealed the regulator’s intention to outsource enforcement administration in March.
The Pensions Regulator chief executive Bill Galvin says: “Helping more than one million employers get ready for automatic enrolment over the next five years is a major challenge. We will provide high-quality information to every employer in the country, making it as simple as possible to comply.
“Working with Capita will enable us to make a rapid transition to providing information to tens of thousands of small and micro businesses each month – as well as supporting them by dealing with their calls and questions – whilst continuing to focus on our role regulating the pensions industry.”