1. Teachers’ Pension Scheme (TPS)
Scheme Administration

2. History 1992 - Executive Agency
Outsourced to Capita: delivered reduced running costs and investment in IT, EDM introduced.
nd contract - delivered rationalisation of systems and introduction of Hartlink platform. Improved Service Delivery via rigorous SLA and KPI regime.
2011 3rd (current) contract - delivering focus on Member and Employer engagement
2014 – current contract extended to 2021– focus on delivery of Digital by Default through the TPS Vision
the original TPS procurement was conducted in line with Government best practice as advocated by OGC as they were at that time (they are now Crown Commercial Service). The procurement followed the Competitive Dialogue procedure following publication of a Contract Notice in OJEU.

3. Procurement Process OGC (now Crown Commercial Service) best practice.
Competitive Dialogue procedure following publication of a Contract Notice in OJEU
Existing contract included the option to extend – Cabinet Office approval necessary and obtained.

4. TPS Contract – scope Centrally administered scheme
Capita carries out the bulk of the administrative functions
Maintenance of member records
Calculating, processing, paying pension benefits
Pre-retirement operations
Collection and reconciliation of contributions
Scheme accounts forecasts
Improving member and employer engagement and understanding
Keeping accurate records of member service and salary details
Pre-retirement operations include processing pension flexibility elections, transfers in and out, ill-health, opt-outs, opt-ins, death benefits
Resource accounts remains a responsibility of the Department

5. Current Contract Contract value £128m Fixed Charge Year 4 £15.6m
Fee Dependent upon achievement of service (SLAs) and outcomes
Open Book Accounting with Gainshare mechanism in place to prevent excessive profits

6. Current Service Key facts
643,831 Active Member
531,856 Deferred Member
670,623 Pensioners
28,683 Retirement applications this year
18,505 Death Benefits payments
£5.378bn in contributions
£7.341bn in benefits

7. Service Reporting
Comprehensive Monthly Service Delivery Report showing
achievement against SLAs and KPIs
Progress of specific initiatives/projects
Audit and security
Service Improvement Programme
Finance
Engagement
Quality Management
Annual Report

8. Current Services - Measures
11 SLAs - delivery of the service
8 KPIs - qualitative measures
12 Contract Outcomes – progress against strategic objectives (member & employer engagement and digital transformation)
£51, withheld in Year 3 non achievement of SLAs
Only £64,388 paid of possible £919,831 for Outcomes year 3

9. Risk Management
Controls to manage risk to a reasonable level to identify and prioritise, evaluate likelihood and impact. Specific controls are:
One Risk Register that covers all sections: contract, policy, finance and administration – Risk Committee is responsible for management of the register
Escalation – Service Governance (see previous slide)
Contractual Audit Requirement - TP produce an audit strategy that complies with Public Sector Internal Audit Standards (PSIAS)
Annual Audit Plan – a risk based Annual audit plan delivered by Capita’s Group Internal Audit that is approved by DFE

10. Current Risks Risk Description Potential Impact Gross Risk
Current Position
Net Risk
Target Risk Rating
TPS Cash Forecasting exercises, Spring Supplementary and OBR are inaccurate, potentially leading to Resource Accounts qualification.
Reputation Cash Qualification
Good controls in place give confidence that OBR (submitted in September) is accurate. Controls also give assurance regarding Spring Supplementary (due January).
Will always remain at least Amber due to the nature of the risk
Employers and stakeholders are not engaged in the TP scheme which will impact on the ability to deliver an effective service and achieve outcomes.
Contractual obligations Costs Complaints Customer Service SLA's (Critical/Key Measures)
Engagement Strategy reviewed regularly. Project set up to include Capita and TP staff to review Outcomes
The increase in digital transactions and ability for teachers to view information via tablet,mobile etc should increase engagement. Could move to green after implementation of Reform Programme digital transactions
Failure to implement or effectively manage legislative change brought about by the 2015 Reform initiative into the business,
Regulatory Censure, Complaints, Customer Service, SLA's Cost of re-work Reputation Outcomes
TPS ahead of other schemes and on track.
Due to the timeline of this Project it will always remain at least Amber until the conclusion in April 2015.
Inadequate control environment in which to monitor and submit accurate figures iro the TPS resource position throughout the year (monthly to Treasury/OBR iro estimating) could ultimately lead to account
Reputation Treasury Risk Forecasting Excess Vote Qualification
Meeting required to define detailed process map in order to understand requirements for handover of the work from DfE to Capita. Concern that end of financial year is fast approaching and process map not yet drafted.
Due to the nature of the risk this will always remain at least Amber.

11. Customer Feedback
Continuous Customer Satisfaction Surveys – reported monthly
Outcome measures - annually.
Engagement Focus groups
Teachers’ Pensions Admin Forum – termly meeting with scheme members and employers
TP Admin Review Group- termly meeting between TP, DfE, unions and employer representatives

12. Employers’ Role TPS/DfE does not employ scheme members
6,000+ employers includes LAs, academies, colleges, universities, independent schools and others.
LAs often do not carry out many of their “employer” functions.
Employers are responsible for:
Salary and service data on all scheme members
Deducting and remitting contributions
Providing audit certificates for contributions
Enrolling teachers in the scheme
Providing information on appointment and at key stages in career
Assisting with and authorising retirement applications
Debt Recovery
Collecting contributions for additional pension payments

13. Current Initiatives
Final phases of Scheme Reform – an extensive programme of operational changes and engagement activities
Relocation Project – moving to brownfield site in Darlington – target date end Sept 15 with contingency to end Nov 15
Deferred Programme – specific programme to contact 200K members over a 4 year period
Monthly Data Collection – currently in approach assurance phase, first on-boarding April 2015, to be mandated April 18

14. Other contracts Medical advisor GAD
Prudential AVC contract (no monetary value – outside TPSPB remit)
Methods (IT Security Specialists)