Logica drops bid for state pension service

The service will give many more people access to pensions

IT services firm Logica has dropped out of the bidding to administrate the new state pension scheme.

The personal accounts pension scheme aims to create a low-cost, independent, workplace pension scheme that any employer can use, based around an online service.

Many people on low to middle incomes who work for small businesses currently do not have access to an employer pension scheme.

Rather than building an IT system from scratch, the winning supplier will be expected to stitch together various different pension business services such as fund administration and investment management.

The bidding process began six months ago. Arbejdsmarkedet Tillaegspension group withdrew from the bidding process earlier this year. Following the departure of Logica, only Great-West Retirement Services and Tata Consultancy Services are still in the bidding.

The Personal Accounts Delivery Authority will award contracts early next year.

Tim Jones, PADA Chief Executive, thanked Logica for their participation.

“This is a complex procurement and it is not unusual for bidders to re-assess their position as competitive dialogue continues," he said.

"The process with other bidders is proceeding well and we are very confident we will have a strong competition for the final contract.”