Capita Hartshead has been appointed by the Pension Protection Fund (PPF) to take administrative control of compensation payments to members of eligible defined benefit (DB) pension schemes which have failed.
The appointment, which is still subject to contract, will see Capita take on the role of compensation payroll administrator, which will see it make payments to eligible scheme members when they retire.
It is proposed Capita Hartshead will run the contract from a bespoke version of its own in-house pensions administration platform HartLink, through its Darlington public sector division.
The appointment was made following a series of tenders conducted under strict public contract regulations and European Union procurement rules, and will apply initially for three years, with the option to extend it for a further two.
Alan Duncan, director of operations at the PPF, says the appointment of Capita Hartshead is a significant milestone in the development of the PPF, and supports its principle of using market solutions where appropriate.
He adds it also has a proven track record in pension administration which will help the PPF to achieve it’s objective of paying the right person the right compensation at the right time.
Duncan says: “We will be working in close partnership with Capita Hartshead over the coming months to ensure the smooth transfer of pension schemes into the PPF, the first of which we are expecting in the autumn.”
Meanwhile, Mike Addenbrooke, managing director of Capita Hartshead, says it’s size and experience places it in a unique position to provide compensation administration services to the PPF which offer quality, reliability and value for money.
He adds: “Reaching this stage follows a rigorous, competitive tendering process and is testament to the strong reputation we have developed as a first-class pension service provider. We very much look forward to a long term working partnership.”
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