Date posted: 01/07/2009

Audience: HR Managers, APAC Contract Managers and HR policy teams

Action:

  • To note the information contained in this EPN
  • To note the changes to section 2.3 of the Employers’ Pension Guide. (If you hold a hard copy of the EPG, please destroy the existing section 2.3 and replace by printing off the new version found at the end of this EPN.)

Timing: Routine

Detail

  1. In 2007 CSPD appointed PricewaterhouseCoopers (PwC) to undertake an independent review of the delivery of the Civil Service pension arrangements. The review aimed to identify a robust and cost effective delivery model by assessing the strengths and weaknesses of the current arrangements and then go on to consider the alternatives.
  2. The current model has 8 APACs with a separate pensioner payroll provider. The review has now been completed and has concluded that although the current model is working, it is overly complex.
  3. The results of the review led us to a preferred option of having a single administrator responsible for delivering all pension administration services including pensioner payroll.
  4. Before making a final decision on the way forward, Permanent Secretaries have asked for some more detailed work to be carried out on both the future design of pensions administration in the Civil Service and how we might make the transition. This work will complete this summer and will be presented to Permanent Secretaries for their approval to proceed with the changes.
  5. One area of concern for you may be if your arrangement with your current APAC is coming to an end. You should currently have a SLA or contract in place with your APAC. If your SLA or contract is due for renewal in the next 12 months or so, we strongly recommend that you negotiate an extension of the existing arrangement instead of re-tendering for services with an alternative provider. For the time being we suggest that any extension to an SLA or contract should be for one year initially, extendable on an annual basis thereafter for a further two years (i.e. capable of being extended for three years in total).
  6. Should you have significant concerns about your existing arrangements which you feel prevent you from extending your SLA or contract, and you are unable to resolve these concerns with your APAC, you should contact the Employer Helpdesk before considering moving to a full procurement

If you are considering re-tendering please contact the Employer Helpdesk to advise us of your plans and we will contact you directly to discuss.

  1. We have also alerted HR Directors to this information in the HR Directors’ Bulletin and are writing in similar terms to the Heads of each APAC
  2. We are committed to keeping you informed throughout the decision making process and when we have a final decision on the proposal for changing the current arrangements we will issue a further EPN
  3. Section 2.3 of the Employers’ Pension Guide, which includes guidance on appointing an APAC, has been revised to take account of this EPN, and can be found at the end of this EPN.
  4. If you have any concerns about the contents of this EPN, please contact Mike Mordecai or Laura Stevens at Civil Service Pensions.

mike.mordecai@cabinet-office.x.gis.gov.uk 01256 846126
laura.stevens@cabinet-office.x.gsi.gov.uk 01256 846396

Contacts

Enquiries about content, distribution or to receive in a different format

employerhelpdesk@cabinet-office.x.gsi.gov.uk
01256 846414
Employer Helpdesk
Civil Service Pensions
Grosvenor House
Basing View
Basingstoke
RG21 4HG


Attachments

Published:
1 July 2009
Last updated:
25 January 2022