Section one: Contracting authority/entity
one.1) Name and addresses
Department for Education
Sanctuary Buildings, 20, Great Smith Street
London
TPS.COMMERCIAL@education.gov.uk
Country
United Kingdom
NUTS code
UK - United Kingdom
Internet address(es)
Main address
https://www.gov.uk/government/organisations/department-for-education
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Contract Variation for the Provision of the Teachers’ Pension Scheme Administration for the UK Department for Education
two.1.2) Main CPV code
- 66523100 - Pension fund administration services
two.1.3) Type of contract
Services
two.2) Description
two.2.2) Additional CPV code(s)
- 66000000 - Financial and insurance services
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement at the time of conclusion of the contract:
Solution required to fully support all aspects of the operational scheme in accordance with the legislative provisions and operation guidelines.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
End date
30 September 2025
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2020/S 051-122386
Section five. Award of contract/concession
Contract No
09/S 180-258507/EN
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
24 April 2011
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Capita Employee Benefits Limited
London
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor/concessionaire is an SME
No
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £20,597,816
Section six. Complementary information
six.3) Additional information
A voluntarily 30 day standstill period shall be applied to this modification notice.
six.4) Procedures for review
six.4.1) Review body
UK Government Cabinet Office
70 Whitehall
London
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
Department for Education
Sanctuary Buildings, 20 Great Smith Street
London
SW1P 3BT
Country
United Kingdom
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 66523100 - Pension fund administration services
seven.1.2) Additional CPV code(s)
- 66000000 - Financial and insurance services
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
seven.1.4) Description of the procurement:
On 20 December 2018, the Court of Appeal ruled that transitional protection arrangements contained within the judges’ and firefighters’ pensions schemes (the McCloud and Sargeant cases, respectively) were discriminatory on the grounds of age, sex and race. The transitional protection arrangements are policy provisions that were introduced on 31 March 2012 and enabled those who were closest to their normal pension age to stay in the final salary schemes whilst those who were younger transitioned over into the new Career Average Revalued Earnings (CARE) schemes from 1 April 2015. And therefore there is a need to deliver transitional protection discrimination remedy.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
End date
30 September 2025
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£20,597,816
seven.1.7) Name and address of the contractor/concessionaire
Capita Employee Benefits Limited
London
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor/concessionaire is an SME
No
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
This is a contract modification delivered under the Public Contracts Regulations (2015) regulation 72(1)(b) to rectify member records.
The Court of Appeal determined, on 20 December 2018, that the transitional protection arrangements contained within the Firefighters’ (Sargeant) and Judicial (McCloud) pension schemes (introduced as part of pension scheme reforms in 2015) constituted unlawful discrimination. While the Court of Appeal decision relates specifically to the Firefighters and Judges’ schemes, HM Treasury has confirmed that it impacts all main public service schemes, including the Teachers’ Pensions Scheme.
The Court of Appeal ruling therefore has two main effects for the TPS:
We must amend the Scheme to avoid further discrimination going forward; and
TPS members who have already been impacted by the discrimination must be appropriately compensated.
We now need to deliver the transitional protection discrimination remedy in accordance with the primary legislation that HM Treasury is bringing forward and consequential amendments to the statutory regulations that govern the Scheme.
Value of the Variation
Increase in price will be up to 20,597,816 GBP against the current contract value of 193,043,295 GBP.
seven.2.2) Reasons for modification
Need for additional works, services or supplies by the original contractor/concessionaire.
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
The contracting authority is relying on Regulation 72.1.b. due to economic and technical reasons that a change of contractor would cause significant inconvenience and have to overcome significant technical barriers in order to amend and reconcile live pension data as well as substantial duplication of costs for the contracting authority.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £193,043,295
Total contract value after the modifications
Value excluding VAT: £213,641,111