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NHS Pensions Agency

Answer

The NHS Pensions Agency is to become part of the Business Services Authority (BSA) on 1 April 2006. This was first announced in the report, ““Reconfiguring the Department of Health's Arm's Length Bodies”” published in July 2004. This report reflected Government policy to reduce costs of administration through modernisation of systems and use of private sector capability where appropriate. ““The Implementation Framework for Reconfiguring the DH's Arm's Length Bodies:, redistributing resources to the NHS frontline”” published in November 2004 built on this approach. In implementing these reports, consideration is being given to market testing a wide range of the BSA's functions, not just those of the NHS Pensions Agency.Following a review of the NHS Pensions Agency by KPMG, a report recommending full outsourcing of this mostly administrative business was published on 21 May 1998. The decision to outsource elements of the business was announced on 6 March 2000. The KPMG report was placed in the Library of the House on the same day. Expressions of interest were invited through the official Journal of the European Community on 20 June 2000 and 33 organisations responded.The outcome of the procurement process was to award a contract covering about half of the NHS Pensions Agency's functions to Paymaster (1836) Limited with an option to expand to all its functions at a point in the future. The contractual terms agreed at that time obliged the NHS Pensions Agency to negotiate with Paymaster (1836) Limited first on any proposed expansion of the outsourcing arrangements.Should a decision be made to expand the existing outsourcing arrangements at the NHS Pensions Agency, full consultation will be undertaken with both trade unions and employees.If outsourcing some or all of the NHS Pensions Agency is extended as a result of current negotiations, employees dealing with NHS Pensions and the student bursary scheme will transfer to the private sector partner under the provisions of the Transfer of Undertakings (Protection of Employment) Regulations.The resulting contract with the private sector supplier will reflect the principles of the Joint Statement of Good Practice issued on 6 October 2005 by the Department, NHS Employers, the Confederation of British Industry and the Business Services Association, together with a number of trade unions. That statement commits private sector suppliers who contract with the NHS to meet minimum standards on pay, conditions of service and work force issues.Similarly, contractors are required to offer all transferring NHS employees membership of a pension scheme broadly comparable to the NHS scheme.

Secondary information

Type

Written question

Reference

26425; 440 c2159-61W

Session

2005-06

Subjects

Contracts NHS Staff NHS Pensions Agency