The Capita Group Plc (Capita) has signed a contract with The Pensions Regulator to support its direct communications with employers for automatic enrolment of staff into workplace pension schemes which will be phased in from October 2012. The seven-year contract has an option for the regulator to extend it for a further three years and has an estimated value of £105 million. The contract will commence from October 2011.
The new requirements for employers to automatically enrol staff into workplace pensions will be introduced gradually, on a `staged' basis from October 2012 to September 2016, depending on employer size. The Pensions Regulator will communicate with over 1 million employers as part of its role to maximise compliance with automatic enrolment. Under its agreement, Capita will take on the responsibility for delivering high-volume employer communications and transactional processes in relation to the new requirements; these include:
- Distributing campaign messages to employers, intermediaries and advisers
- Notifying employers 12 and 3 months ahead of their automatic enrolment duty dates
- Managing the process whereby employers register with the regulator
- Operating a customer contact centre
- 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 the regulator.
Chief Executive of The Pensions Regulator Bill Galvin said:
'Helping more than 1m employers to 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.'
Paul Pindar, Chief Executive of Capita commented:
'We are delighted to support The Pensions Regulator to prepare employers for the new requirements to automatically enrol staff into a workplace pension scheme.
'Capita is positioned well with the resources and expertise in delivering complex and high-volume communications to support this major project. Our focus will be on making sure the information, technology and the process for automatic enrolment is clear and simple to assist employers to comply by their duty date.'