UK - The Personal Accounts Delivery Authority (PADA) has revealed it intends to issue a tender for scheme administration services for the new system of personal accounts in January 2009, with the contract expected to be awarded by the summer of 2010.

In a discussion note and prior information notice published on its website, PADA highlighted the administration and investment capabilities for the personal accounts scheme will be outsourced to the private sector as separate tenders.

The organisation said the services are expected to be split into six separate contracts, which could include:

Scheme administration Annuity purchase Trustee services Investment administration and custodian services Investment management, and
Communications PADA admitted "it is not yet clear whether the scheme's communications needs will be met by a dedicated provider or whether they will be included within the responsibilities of scheme administration or trustee services".

To help it develop the structure of the new system and to decide what type of services are needed, the body has issued an "informal consultation" as part of the discussion note.

Issues on which it invites comment from stakeholders include product development - such as achieving target participation - and scheme design, in particular the "most significant risks to deliverability" and how existing operating models and business processes can be designed to meet the challenges of personal accounts.

Other issues addressed by the consultation include how information systems and information technology can be used without increasing costs, and potential methods of implementing personal accounts from 2012.

Responses to the consultation should be submitted no later than July 14 2008, although parties interested in potentially supplying any of the services to PADA can also register to attend a procurement process information event on July 2 2008.

PADA recently initiated a search for three sets of specialist advisers to support the body in the implementation and delivery of the new pension system.  [See earlier IPE.com article: PADA to bring in personal account advisers]

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

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