invitation to tender tcm6 4297 by P068jl

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									   Statement of Service Requirements and
          Invitation to Tender (ITT)
            for the provision of an
Authorised Pensions Administration Centre for
        [insert name of organisation]
                                                                                     DOCUMENT 1
                                                                               CONTRACT REF: XXX/02



    INSTRUCTIONS AND INFORMATION ON TENDERING PROCEDURES


About These Instructions


1. These instructions are designed to ensure that all tenders are given equal and fair
   consideration. It is important, therefore, that you provide all the information requested in
   the format and order specified. If you have any doubt as to what is required, or if you
   will have any difficulty in providing the information requested, or if you have any queries
   about the requirement set out in this invitation to tender (ITT), or if you require a copy of
   the Principal Civil Service Pensions Scheme (PCSPS) Rules, or the PCSPS Pensions
   Manual, or copies of scheme member booklets, please contact the person named
   below:
                   [Insert name, postal and email address, telephone and fax numbers of the
                   person to be contacted, with an alternative if available]

The Scheme Rules and scheme member booklets are available on the Civil Service
Pensions website together with other information about the PCSPS: www.civilservice-
pensions.gov.uk
Timetable and Administration Arrangements
2. Please note the following dates and ensure that your tender is submitted by the date
   and time indicated.

          Arrangements for pre-tender meetings or visits to the Authority: [insert dates, times,
           location and booking contact as appropriate]

          Time and date for return of tenders: [insert]

          Expected date of contract award: [insert]

          Date contract is expected to commence: [insert]
Conditions applying to this contract
You should note and observe the Conditions Applying to this Tender, attached as
Document 2 and the required documentation set out in Document 3
Meaning of certain words

3. Please note that in this ITT:


       Authorised Pensions Administration Centre (APAC) is a service provider authorised
        by the Cabinet Office to calculate and award PCSPS administration services. It may be
        an organisation within or outside government;


       The Authority means the [Secretary of State for ……………/ First Minister / First
        Secretary / Title of officer of the Crown], being the body holding a Delegation
        instrument from the Minister for the Civil Service under the Superannuation Act 1972 in
        respect of the pensions administration for its staff and the staff of any body admitted to
        the PCSPS under Schedule 1 of the Act and for which the Authority also holds a
        Delegation Instrument.
NOTE _ Use / Delete as applicable.
This definition to be used for employers holding a direct delegation for pensions
administration. Where the ITT is for pension administration for a Schedule 1 body
only, use alternative definition below.

 The Authority means the [name of sponsored body]. Under the Superannuation Act
        1972, the Minister for the Civil Service may only delegate the function of pensions
        administration to a department that is headed by a Minister or Officer of the Crown. As
        the [sponsored body] is not headed by a Minister or Officer of the Crown, the Minister for
        the Civil Service must delegate the function of pensions administration for the staff of
        the [sponsored body] via a sponsoring department that is headed by a Minister or
        Officer of the Crown. The sponsoring department is [name of sponsor department].
        References to the Authority in these documents, [unless otherwise stated] should be
        read as meaning the [sponsored body] alone. The [name of sponsor department] acting
        on behalf of the [title of sponsor department’s minister, e.g.Secretary of State for ..], is
        therefore a party to any contractual arrangements enabling the [sponsored body] to
  outsource its scheme administration
NOTE – Use / Delete as applicable.
Definition to be used for Schedule 1 employer with a sponsor Department.

          Cabinet Office means the Cabinet Office Civil Service Pensions Division, unless
         otherwise stated;

         Civil Service pension arrangements: the PCSPS and the partnership pension
         account

         Contractor is a provider of administration services for the [PCSPS].            The
         Contractor must be, or intend to be, an Authorised Pensions Administration Centre;

          Customers are those who are served by administration of the Civil Service pension
         arrangements:

                 members

                the Cabinet Office (on behalf of the Minister, as a customer, for example, of the
                 Quarterly Stewardship Report and the Annual Accounting Officer’s Certificate);
                 and

                the Authority as a customer of the service as a whole and for specific outputs,
                 for example monitoring reports;

         members are primarily active members of the Civil Service pension arrangements,
         certain past members and other beneficiaries;
       the Minister refers to the Minister for the Civil Service;
          PCSPS means the Principal Civil Service Pension Scheme.                 In this tender it

                                                                                                       1
      includes:

           classic, classic plus and premium

           the Civil Service Compensation Scheme (CSCS),

           the Civil Service Additional Voluntary Contribution Schemes (CSAVCS)

           and any other Scheme made by the Minister under the Superannuation Act
            1972,

           specific services in relation to the partnership pension account
      but excludes The Civil Service Supplementary (Earnings Cap) Scheme;
Pension Paying Authority is Capita Hartshead Ltd under a contract with the Minister;
Strategic partner is a contractor providing PCSPS administration services as an APAC
within or outside government;
Tenderer means a bidder for the provision of PCSPS administration services, and a tender
means a bid.




                                                                                           2
                                                                                       DOCUMENT 2
                                                                                 CONTRACT REF: XXX/02

                      CONDITIONS APPLYING TO THIS TENDER
Contract period
1. The contract is to be for a period of [insert contract length], unless terminated or extended
   by the Authority, subject to satisfactory performance in accordance with the tender document.
NOTE: Contract length should be that which will best deliver value for money and is often not
normally less than 5 years: - consult your procurement adviser.

Alterations
2. You may not alter any of the documents. Any modification that you think necessary to the
proposed contract/SLA is to be detailed separately in the format set out in Document 8, Schedule
2.
Incomplete tender
3. Tenders may be rejected if the complete information called for is not given at the time of
tendering.
Address label
4.    [The address label for the return of your tender is enclosed and must be used.]
Envelopes / packages must bear no reference to the tenderer by name. Tenders are to be
returned by [Time on day and date]
NOTE: State your labelling requirements here. If you enclose a label it must state that the contents are
tender documents, with the time and date on which they will be opened. They should be addressed to the
Tender Board and not a named individual. A code that identifies the sender must only be used if an internal
security system is in place that strictly limits this information.

Receipt of tenders
5. Tenders will be received up to the time and date stated. Those received before that date will
be retained unopened until then. Please ensure that your tender is delivered not later than the
appointed time. The Authority does not undertake to consider tenders received after that time.
Acceptance of tenders
6. By issuing this invitation to tender the Authority is not bound in any way and does not have to
accept the lowest or any tender.
Period for which tenders shall remain valid
7. Unless otherwise stated by the tenderer, tenders shall remain valid for not less than [insert
number of weeks/months] from the closing date for the receipt of tenders.
Amendments to the tender documents
8. The Authority reserves the right to amend the enclosed tender documents at any time prior to
the deadline for receipt of tenders. Any such amendment will be numbered, dated and issued by
[insert name – and full contact details if different from that in Document 1] and sent to all
invited to tender. Where amendments are significant, the Authority may at its discretion extend
the deadline for the receipt of tenders.



                                                                                                          3
NOTE: *If this name is different from that in Document 1 paragraph 1, give full contact information.

9. Amendments may be issued as clarification when requested by anyone invited to tender.
   Amendments will also be sent to all invitees.
NOTE: If any such amendments or clarifications fundamentally change the basis on which the ITT was
advertised, then, as good practice, the process should be stopped and re-advertised.
If the deadline is extended, it must be fair to all tenderers, taking account of their location.

Resolution of tenderer proposed amendments and contractual status
10. Where the Authority agrees with the tenderer changes to the proposed contract documents,
resulting from the resolution of any proposals made by the tenderer in Document 8, Schedule 2,
then all such changes will be word processed into the proposed contract by the Authority. Subject
to acceptance, the tenderer shall then initial each page of the proposed contract and shall also
sign the Form of Agreement. This shall constitute a revised offer made by the tenderer to the
Authority. There will not be a contract unless and until the Authority has signed the Form of
Agreement.
Inducements
11. Offering an inducement of any kind in relation to this or any other contract with the Authority
will disqualify your tender from being considered and may constitute a criminal offence.
Collusion
12. Please note that Document 3, Part 9 contains a Certificate of Bona Fide Tendering and any
breach of its undertakings will invalidate your tender.
Costs and expenses
13. You will not be entitled to claim from the Authority any costs or expenses that you may incur in
preparing your tender whether or not your tender is successful.
Transfer of Undertakings (Protection of Employment) Regulations, 1981, as amended –
“TUPE” – and treatment of pensions
14. EITHER*:
Staff are to transfer to the successful tenderer and TUPE will apply, or be honoured in
principle if the successful tenderer is another Authority (See Document 6)
NOTE: See Staff Transfers in the Public Service: Statement of Practice

OR*:
No staff will transfer to the successful tenderer (see Document 6).
* Delete as applicable
Debriefing
15. Following the award of contract (or any decision not to award a contract), debriefing will be
offered to all tenderers; and the Authority will welcome tenderers’ comments on the conduct of the
tendering process




                                                                                                       4
                                                                                      DOCUMENT 3.

                                                                                 CONTRACT REF: XXX/02


                   INFORMATION TO BE PROVIDED IN TENDERS

It is important that you provide all the information requested below. Please provide it
in the order and format indicated. You should provide sufficient information to
enable the Authority to evaluate the proposals to produce a short list and to conduct
interviews. Your tender should comprise the following and be securely held
together. Please provide [state number required] copies in addition to the original.
You should use font size 11 as a minimum.

Part 1: Declaration by Tenderer (attached)
NOTE: Attach your Authority’s standard letter for completion and return with the tender documents

Part 2: Meeting the requirements
1. Management summary
Summarise the main features of your pensions administration service, highlighting the main
features, which provide your “competitive edge”. Describe your organisation’s overall
approach and plans. Describe any changes to your usual service that will be required in
order to satisfy the requirements of [the name of the Authority]. Provide confirmation that
you have been authorised as a Pensions Administration Centre (APAC) by the Cabinet
Office.
NOTE: If the tenderer was not prequalified, add the following questions to this
section:
 You should also include details on:
 Your management structure and financial viability;
 Your track record on human resource issues;
 Your track record on the environment and other areas of Government policy relevant to the
 contract.


2. Statement of Service Requirements
Address the Statement of Service Requirements set out in Document 4. You should confirm
that you will meet all the service requirements, and describe how your organisation will
deliver these requirements. Explain your approach to achieving the required standards, or
higher standards where applicable. Where you have comments to make, indicate against
specific service standards the approach you will take to deliver that service.
3. Software
Confirm that your APAC uses PenServer for scheme administration.
4. Implementation




                                                                                                    5
Describe the implementation plan you would follow, if your tender were successful, setting
out timescales and major milestones. Identify the involvement of your existing staff in the
implementation plan. Indicate what you would expect by way of transitional assistance from
the Authority.
5. Documentation
Provide samples of any documentation - other than the standard scheme booklets and
leaflets produced by the Cabinet Office - that would be provided to members, the Authority
and other customers.
6. Quality assurance
Describe your standard procedures for monitoring and maintaining quality, for ensuring
timely and accurate processing of work, for logging and classifying telephone calls and, if
appropriate, e-mail, with response times, escalation procedures used in resolving problems,
and staff training and development to enable a quality service to be delivered. Indicate
numbers of staff with formal pensions qualifications (give details) expected to be employed
on work for the Authority and proposals for introduction of any new training initiatives.
7. Reference sites
List [3] clients (public sector or private sector) for whom your organisation is providing the
same, or similar, pensions administration service to that required in this ITT. For each
reference site, the following information is required:

 details of the service provided;
 when the service was introduced;
 the number of the client’s staff covered by the service.
Contacts should be named so that the Authority can seek information from any of the
named clients about the services provided by your organisation. You must include written
permission for the Authority to visit without you or your representative being present.

[Part 3: Information about your organisation
Applicants are required to submit the following details

              full published audited accounts for the last two years

              Details of any Director / Officer who has been involved in a company which
               has gone into receivership or has been liquidated in the last 5 years or is
               undergoing such proceedings

              Name and address of any Parent or Holding Company]
NOTE: Include only for tenderers outside government who have not been pre-qualified, or if it
is reasonable to seek another set of accounts after pre-qualification. For example, if in the
time between pre-qualification and ITT the financial year has ended and it is likely that further
annual accounts will be available.

[Part 4: Proposals in respect of staff who are to transfer to you, as set out in
Document 6 ] (include only where applicable)
[Part 5: Accommodation, property, facilities
Indicate whether you wish to use the accommodation, property or facilities made available


                                                                                                    6
by the Authority (if any) and detailed at Document 5 and Schedule 3] (Include only where
applicable)
Part 6:                  Contract / SLA
Confirm that you:
a) accept the proposed contract / SLA terms without amendment; or
b) indicate the amendments you propose on Schedule 2 in Document 8.

Part 7:                  Compliant and non-compliant tenders
You must submit a compliant tender for it to be considered and you must declare in the
Declaration by Tenderer that your tender is compliant.
If you have submitted a compliant tender and subject to the prior approval of the
Authority, you may also submit a non-compliant tender that offers greater innovation,
higher standards or quality, and better value for money, which, at the Authority’s absolute
discretion, may be considered alongside your compliant tender.

Part 8:                  Schedule 1 - Schedule of prices
Tenderers shall quote a fixed price for the duration of the contract.
Tenderers shall set out the make-up of their quotation and their underlying assumptions,
covering:

 price per head
 other costs.
Prices shall be:
a) quoted on Pounds Sterling (tenderers may also indicate the Euro equivalent price*);
b) inclusive of all costs necessary to fulfil the Statement of Service Requirements;
c) be exclusive of VAT;
be valid for [insert number of days/weeks/months]
NOTE: Authorities should insert their preferred pricing structure. Subject to negotiation, a
fixed price contract is likely to offer better value for money, unless there are unusual
circumstances, or the Authority assumes risks that might more appropriately be borne by the
contractor.
Authorities should satisfy themselves that a fixed price contract would best meet their needs
 . a hybrid of a fixed fee, a transaction charge, an annual fee.
 For ease of comparison between tenders, you should include a pro-forma Price Schedule as
Schedule 1, setting out the format you require.
*To avoid discrimination against other Member States, contrary to the EC Treaties
The other options are:
 charging on a transaction basis
annual fee, revised on the basis of annual census (perhaps, if the Authority is facing
significant downsizing)


                                                                                                7
Part 9:         Certificate of Bona Fide tendering (as attached)
NOTE: Attach your Authority’s standard certificate for completion and return

Part 10:        Parent Company Guarantee (as attached), if you are a private sector
tenderer and are a subsidiary company.

NOTE: Attach your Authority’s standard certificate for completion and return

OR

Part 11:        Deed of Bond (as attached)
NOTE: Attach your Authority’s standard certificate for completion and return




                                                                                      8
                                                                                 DOCUMENT 4
                                                                           CONTRACT REF: XXX/02

               STATEMENT OF SERVICE REQUIREMENTS (SSR)
Introduction
1. The Authority requires an occupational pensions service contractor to administer, as a
   strategic partner, the pension arrangements in respect of the Authority’s staff by virtue
   of their membership of the

     Principal Civil Service Pensions Scheme (PCSPS),

     the Civil Service Compensation Scheme (CSCS), and the

     Civil Service Additional Voluntary Contribution Scheme (CSAVCS),

     partnership pension account, and

     any other scheme made by the Minister for the Civil Service under the provisions of
       section 1 of the Superannuation Act 1972,
but excluding The Civil Service Supplementary (Earnings Cap) Scheme. In this invitation to
tender (ITT) these schemes are referred to collectively as the “PCSPS”.
2. Responsibility for the administration of the PCSPS in relation to the Authority’s staff
   and/or the staff of the [….. Schedule 1 body/bodies] has been delegated to the Authority
   by the Minister for the Civil Service (the Minister), under the provisions of the
   Superannuation Act 1972. The Minister is accountable to Parliament for the PCSPS as
   a whole; sets the policy for the PCSPS; makes the rules of the PCSPS (subject to
   Parliament’s approval); and holds the Authority to account for the effective and efficient
   administration of the PCSPS. Guidance for administrators on the application of the
   PCSPS Rules is set out in the PCSPS Pensions Manual and for employers in the
   Employers’ Pension Guide. The Pensions Manual is updated by Pension Circulars sent
   to administrators, and updates to the Employers’ Pension Guide are issued via
   Employer Pension Notices; these are copied to administrators.
NOTE: Text for use by employers with direct delegations (including delegations for
Schedule 1 bodies). Where the ITT is for pension administration for a Schedule 1
body only, use alternative text below.
    2. The function of the administration of the PCSPS in relation to the Authority’s staff
    has not been delegated formally to the Authority under the provisions of the
    Superannuation Act 1972 by the Minister for the Civil Service (the Minister). However,
    the Authority is subject to the same conditions of accountability and control as if a
    formal delegation was in place. The Minister is accountable to Parliament for the
    PCSPS as a whole; sets the policy for the PCSPS; makes the rules of the PCSPS
    (subject to Parliament’s approval); and holds the Authority to account for the effective
    and efficient administration of the PCSPS. Guidance on the application of the PCSPS
    Rules is set out in the PCSPS Pensions Manual and for employers in the Employers’
    Pension Guide. The Pensions Manual is updated by Pension Circulars sent to
    administrators, and updates to the Employers’ Pension Guide are issued via Employer
    Pension Notices; these are copied to administrators.
3. The Contractor will be required to provide the Authority with a full pensions
   administration service in respect of all elements of the PCSPS (classic, classic plus and


                                                                                                9
     premium schemes) and support for the partnership pension account.
NOTE: Employers have responsibility for processing partnership pension account applications from
new entrants. If you wish the APAC to carry out any of these, you must add the specific requirement
to this ITT. The ITT is drafted on the basis that the APAC role for partnership is limited to answering
member queries about the scheme partnership pension account booklets and handling ill-health
retirements and death benefits for partnership pension account members. See M32, M36, M47, and
M48.

Payment of pensions
4. Payment of pensions and other benefits when an award has been made is outside the
scope of this ITT. Benefit payment is the responsibility of the pensions paying authority,
which is Capita Hartshead Ltd, under contract with the Minister.
Workload
5. The number of staff in the Authority/Schedule 1 body at [date] is [number].
EITHER: *        No significant increase or decrease in numbers is currently forecast
OR *            On current forecasts, the number of staff is expected to *increase/*decrease
significantly [numbers/timescale] as a consequence of operational change.
[……] former staff of the Authority will be covered by the contract
NOTE: include former staff of predecessor or defunct bodies and any deferred awards that
look to the Authority for PCSPS services

6. An estimate of the pensions administration workload in a typical year from PCSPS
members [and former members] in this Authority is as follows:
NOTE: Authorities to provide helpful data. Insert, for example, an informative table on following lines.
List of activities (“request”) shown here is not exclusive. You can obtain information on workloads
from your current APAC.

                    Request                                            Number per year

                                           Current year to:   Previous year to   Previous year to   Previous year to

                                                              31 March 20 - -    31 March – 20 -    31 March –20 - -

                                                                                         -

Transfers into PCSPS

Transfers out of PCSPS

Calculation of preserved awards

Additional WPS contributions

Calculation of age retirement awards

Purchase of added years

Additional Voluntary Contributions

Early retirement awards

Early severance awards



TOTAL



Payroll Service

                                                                                                                       10
7. The Authority’s payroll provider is [insert details]. The contract expiry date is [state date].
There is / is not* a current fully functional payroll to PenServer interface in place.
NOTE:
* Delete as applicable
Where the proposed pensions administration contract will cover several organisations, (e.g.
agencies / Schedule 1 bodies) that have different payroll providers, this information should be
provided for each different payroll provider.


Mandatory outputs

A:       Services and standards
The Authority
GENERAL SUPERANNUATION STANDARDS
These quality standards are mandatory and represent good practice. It is recognised that
some of the mandatory requirements which specify timescales for processing casework in
this and the following section may be affected by delays due to third parties failing to provide
the information. Nonetheless, the contractor’s internal arrangements should be such that
any impact is minimised and the timescales specified in this document assume that no
delays have occurred.
It is a general requirement that the Authority will be treated with courtesy and
professionalism at all times. The Contractor's staff will do their best to understand their
customer's needs and respond politely, quickly and efficiently.
M1     The contractor is required to adhere to, and deliver, the requirements of the PCSPS
Rules, as amended from time to time, including those for classic, classic plus, premium and
partnership. In particular, the following outputs are required to be delivered for the
“customers” identified below (as underlined headings), with administration carried out in full
accordance and compliance with the PCSPS Rules, the Pensions Administration Control
Framework document, the PCSPS Pensions Manual and such other operating guidance as
may be revised or issued from time to time by the Cabinet Office.
M2    The contractor will provide information and advice to the Authority on request on the
PCSPS Rules and administration.
M3      A well-maintained and up-to-date and comprehensive database of records, as set
out in this Statement of Service Requirements, including:

    members’ names;

    members’ official postal and e-mail addresses, official telephone numbers;
NOTE: Authorities to ensure that the staff contact requirements reflect their needs and
working arrangements

    names and addresses of nominated beneficiaries;

    pensionable pay;

    conditioned hours of work;

    non-reckonable absences;

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   date of entering and leaving the PCSPS;

   scheme choice and record of any ‘switches’

   reserved rights;

   any new data items that become necessary as a result of legislative changes or
    decisions made in courts in the UK and European courts that affect UK pension
    schemes.
M4     Monitoring reports on delivery of the outputs and standards specified in this
Statement of Service Requirements and such other management information as may be
required from time to time.
NOTE: Authorities should consider whether to require regular – say, quarterly - monitoring
meetings and include accordingly.

M5   Information as may be required to complete the Quarterly Stewardship Report and
Employer’s Annual Report for the Cabinet Office.
M6     Information required in order for the Authority’s Accounting Officer to complete the
Annual Accounting Officer’s Certificate for the Minister for the Civil Service, including
confirmation that:

   all benefit estimates and awards were calculated correctly in accordance with the
    PCSPS Rules , the PCSPS Pensions Manual and guidance as issued by Cabinet Office;

   pensions administration is conducted in accordance with the standards of service quality
    and service delivery set out in the PCSPS Pensions Manual and compliant with the
    requirements of the Pensions Administration Control Framework document;

   approved standard software (PenServer) is used and the security of the system is
    safeguarded;

   independent checks on a statistically random sample of completed cases are made at
    least once a quarter/ monthly;

   a 100% check has been made of the names on the reconciliation statements received
    from the pensions paying authority to confirm they agree with the awards generated by
    the contractor on behalf of the Authority and that none is missing and that a check has
    been made to confirm that the amounts and other details on the reconciliation
    statements are correct;

   staff engaged on pensions administration work are properly trained for their
    responsibilities and the work they are required to undertake;

   proper internal control systems are operated by the contractor;
M7     Information required by the Authority in connection with early departure
programmes, including estimates for individual and group exits and associated
departmental costs.
M8    Accurate and effective data transfer to the Authority’s payroll office, the
pensions paying authority and, as appropriate, CSAVC providers, including in respect,
of:

   awards of benefits or refunds;



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   transfer values;

   elections by members to buy added years, CSAVCs, or to pay additional WPS
    contributions.

   PCSPS optant outs NOTE: See also M25 and M26
The Contractor shall encourage the use of Electronic Data Interchange (EDI), when cost-
effective.
M9     In respect of members who leave early, on the grounds of approved early
retirement, or flexible and compulsory early retirement or severance, or dismissed on
grounds of inefficiency:

   such assistance as the Authority may require in connection with the Authority’s
    responsibility to meet the cost of such departures.
M10 Handling of receipts: remittance via RFT, BACS or CHAPS, with an explanatory
note, to Cabinet Office: Civil Superannuation of any payments received in respect of
PCSPS member benefits, which must be made for the credit of “the Civil Superannuation
Vote”.
New and re-employed staff
The Authority will ensure that all new entrants receive the appropriate Starter Pack as
soon as possible, and not later than 2 months after their start date.
M11 On receipt of the Pension Choices form from the member, the Contractor will take
appropriate action including:

          record and acknowledge scheme chosen;

          record and acknowledge details of death benefit nomination on PenServer;

          advise aggregation options and take forward;

          provide acknowledgement letter and leaflet on transferring benefits into the
           PCSPS, including any time limits;

          advise information on request for increasing retirement benefits through the
           purchase of Added Years, making Civil Service Additional Voluntary
           Contributions (CSAVCS), Free Standing Additional Voluntary Contributions
           (FSAVCS), repaying past funds or gratuities;

          follow-up to request to opt-out with details of consequences and form for
           confirmation of decision;

          provide ‘Pension for Partners’ booklet on request;

          record consent for combined benefit statements

          collecting salary information from the Authority’s payroll office;

          admitting; and carrying out any request to transfer in benefits from another
           pension arrangement;
NOTE: If you want the contractor to handle ordering of Starter Packs, you should detail the
required actions and communication procedures in M11.


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M12 For new members transferred to the Authority with their work from another scheme,
on bulk transfer terms, in addition to any relevant actions under M11:

          provision of such Scheme information and other assistance as the Authority may
           request;

          noting on each individual’s record the outcome of their election on whether to
           accept any offer of bulk transfer terms;

          notification to the new member that this has been done and of the effect of their
           election;
Members
M13 Distribution of scheme information to members (in readily accessible paper
[and electronic] format):

   up-to-date information on the PCSPS, its products, benefits and services including
    provision of relevant scheme member booklets and leaflets where appropriate;

   the services available from the contractor;

   the standards the contractor has to meet and is meeting;

   how the services from the contractor may be accessed;

   comments and complaints procedures.
M14 A readily accessible members’ enquiry service / help desk, by telephone, [and e-
mail] and in writing, capable of providing immediate answers and available from [state
required service times]. If the issue is complex and an immediate answer cannot be given, a
response within 5 working days either answering the enquiry or confirming a date, compliant
with PCSPS service standards, by when a substantive reply will be sent.
M15    Call logging, acknowledgement of enquiries and full answers.

NOTE: Authorities should specify their requirements, taking account of their staff, and other
customers’ needs. Authorities should consider carefully the value for money of a freephone or
a lo-call service not on the GTN.
M16 From time to time, as may be required by the Authority, meetings with members or
other consultation arrangements to learn their views and requirements in relation to
services provided under the contract; and subsequently demonstration to them and to the
Authority of actions agreed in the light of such consultations.
NOTE: Authorities should consider their requirements for consultation with members bearing
in mind the importance given to effective customer feedback in Modernising Government.
Authorities should consider the need for accommodating the views of the staffs’ recognised
trade unions or independent staff representatives.




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M17 Prompt notification to members of legislative or rule changes or other matters
affecting the PCSPS as may be advised by the Cabinet Office

NOTE: Authorities should ensure that requirements in relation to the provision of information
to members reflect their communications strategies and value for money. Authorities may
wish to specify, for example, whether the APAC is to distribute pensions communications
provided by the Authority or whether the APAC is required to prepare and distribute all
pensions communications.


M18 Accurate and up-to-date PenServer records, based on information provided, and the
contractor’s best efforts to secure accurate and up to date information.
NOTE: If you wish your APAC to keep paper files in addition to the PenServer record, you
should state your requirements here. Your should note that APACs are reviewing the cost
effectiveness of retaining paper records as part of modernisation of pensions administration.
M19 Provision of personal benefit statements, annually, compliant with the
requirements of the Disclosure of Information Regulations, in the format prescribed by
Cabinet Office, including:

   a name, address (postal and e-mail) and telephone number for further enquiries;


   estimate of the member’s benefits accrued at the statement date and prospective
    benefits at retirement age;

   estimate of dependant’s contingent benefits at statement date and prospective benefits
    at member’s retirement age;

   details of reckonable service and pensionable pay on which the estimates are based,
    with the basic calculation formula;

   details of any transferred-in service and added years purchased;

   an estimate of the benefits that would be paid upon the member’s death in service (as at
    the date of the statement) and the formula for calculating these benefits;

   advice that benefit information about CSAVCs or FSAVCs should be obtained from the
    AVC providers concerned.
M20 Following the issue of personal benefit statements, provide any additional
information requested by members;
M21 Action and implementation of any request by a member, following the issue of
personal benefit statements or at any other time, to make additional contributions to
increase benefits.
M22 Estimates of benefits, upon request in liaison, as appropriate with the Authority’s
human resource managers and staff welfare service.
NOTE Authorities to specify their working practice and arrangements for the provision and frequency
of estimates




                                                                                                      15
M23 Advice to the Authority of the rate of Sick Pay at Pension Rate (SPPR), taking
account of any retrospective increases in pensionable pay and allowances, when requested
by the Authority; and advice to the Authority of any increase due to any member receiving
SPPR following notification by the Cabinet Office of pension increase details.
M24 When the member is being transferred or loaned to another PCSPS employer with a
different APAC, transfer of pensions record information to the new APAC.
M25 In respect of members opting out in writing after the initial 3-month choice period, in
accordance with Cabinet Office documentation:

   notification of the action to the Authority for payroll action; [or to their payroll service as
    agreed]

   treatment of those doing so within 3 months of joining :
       advise consequences of opting out via standard letter and obtaining confirmation of
decision;
       take action to close down their membership as if they had never joined the PCSPS;

   for all others, provision of a statement of benefits accrued up to the date membership of
    the PCSPS ceased;

   advice to the member of the available options in respect of accrued benefits; and action
    in accordance with the member’s wishes;

   where a transfer of benefits from the PCSPS is sought, provision to the member of a
    transfer value, taking account of a Guaranteed Minimum Pension figure secured by the
    contractor from the Department of Work and Pensions, with supporting information to
    enable the member to make an informed choice, and the forms on which to make an
    option;

   where requested by the member provide payment to the receiving pension scheme;

   if no option is received within 6 months, advice to the member of their rights under the
    PCSPS.
M26 Advice and appropriate documentation to any optant-out wishing to re-join the
Scheme; and on notification of a valid option-in, admission of the new member, including
processing any request for transfer in of benefits and notification of re-admission to the
Authority’s payroll provider for the purposes of employee(er) contributions.
M27 Advice and appropriate documentation to anyone wishing to switch schemes, and
follow-up action.
M28    Advice to members about Invalidity Pensions and

   processing of applications;

   making arrangements with the Authority’s payroll provider to deduct contributions.
M29 Advice to any member wishing to purchase, or to cease purchasing, added years
and implementation of the member’s wishes.
M30. Advice to members on the CSAVCS and their admission upon application




                                                                                                      16
M31 Advice to members on availability of FSAVCs (but not financial advice in respect
of AVCs or any other aspect of the PCSPS), and amendment of a member’s record when
notified by an FSAVC provider that a member is purchasing FSAVCs.
M32 Information and advice to members (but not financial advice in respect of partnership
or any other aspect of the PCSPS) on the content of the partnership pension account
scheme booklets. (The Contractor should refer members to address all questions regarding
investment options to the appropriate service providers)
M33 Calculation of additional Widow(er)s Pension Scheme (WPS) contributions,
when requested by any member and, following the member’s election to pay additional
contributions, notification to the Authority’s payroll office and recording of the payment of
additional contributions.
M34 Upon receipt of written notification of an early leaver (i.e. leaving before normal
retiring age, usually age 60, other than under the arrangements listed in M35):

   up-to-date general information about the PCSPS;

   current beneficiary nomination for confirmation or amendment;

   options available for the early leaver;

   effect of re-employment;
and notification of preserved award to the pensions paying authority and member and any
subsequent action in the light of notification by the member requesting an alternative option.
M35 For early leavers without preserved benefits (i.e. those with less than two years
qualifying service), information about:

   a transfer of PCSPS pension rights to another scheme or pension arrangement;

   information about his/her right to a refund of WPS contributions;

   refund of WPS contributions;

   re-instatement into the State Second Pension Scheme (S2P).
NOTE: Authorities to amend reference to reinstatement to S2P as necessary to reflect their
procedures and involvement of payroll centres, and arrangements for recovering cost of CEPs
from CS Vote.

M36    For members leaving under the relevant arrangements listed below:

   up-to-date general information about the PCSPS;

   current beneficiary nomination for confirmation or amendment;

   award statement setting out details of the early leaving benefits;

   options available for the early leaver;
and, on receipt of an appropriate notification by the member, implementation of the option
chosen by the member and notification of the award to the pensions paying authority.
The relevant arrangements are:



                                                                                                 17
   ill health retirement – including partnership pension account arrangements (after referral
    to and approval by PCSPS Medical Advisers);

   actuarially reduced retirement;

   approved early retirement;

   flexible early retirement or severance;

   compulsory early retirement or severance.
M37 For members transferred from the Authority with their work to another
employer:

   provision of such scheme member information and other assistance as the Authority and
    the Scheme Actuary may request, including for the purpose of calculating a bulk transfer
    value;

   noting on each individual member’s records the outcome;

   notification to the individual member and the pensions paying authority of preserved
    PCSPS benefits and other options, where appropriate.
M38    For a member dismissed on grounds of inefficiency:

   up-to-date general information about the PCSPS;

   calculation and notification of the amount of compensation due (if any);

   advice on the pension options available on departure;
and subsequent action including notification of relevant details to the pensions paying
authority.
M39 For a member or a solicitor authorised by the member to act on his / her behalf
in connection with proceedings for divorce:

   provision of the Benefit Statement Pack and/or the Contributions Equivalent Transfer
    Value (CETV) Pack;

   processing of any Court Earmarking Order, including the recording of details and
    providing Earmarking Order information, as necessary, to the pensions paying authority,
    another Authority, or to another pension scheme in the event of the transfer of the
    member’s PCSPS benefits;

   recovery of charges on behalf of the Authority from the member, as set by the Cabinet
    Office; and in due course

   processing of arrangements for pension sharing in accordance with guidance issued by
    the Cabinet Office.

M40 For a member seeking early payment of a preserved award on grounds of ill-
health or compelling personal reasons:

   referral to the PCSPS Medical Advisers in the case of ill-health;

   advice to the Authority for referral, where justified, to the Cabinet Office in the case of
    compelling personal circumstances;

                                                                                                  18
and notification of the outcome to the member and to the pensions paying authority as
necessary.
NOTE: Authorities should ensure that this meets their requirements and working practices
and amend if necessary

M41     For a member with a possible claim for injury benefit:


   notification to the Authority of all enquiries;

   provision of information and responses to enquiries;

   consideration of the member’s claim;

   award of benefits where the claim meets the criteria in the PCSPS Scheme Rules;

   notification of the award decision to the member and, if appropriate, to the pensions
    paying authority.
NOTE: Authorities should ensure that this meets their requirements and working practices
and amend if necessar y. Generally the Authority will refer cases to BMI and if Injury Benefit is
appropriate the case is referred to the Contractor for award of benefits where the claim meets
the criteria set in the PCSPS Rules.

M42     For a member approaching retirement age:

   provision of benefit estimate normally at least 6 months before retirement, but
    exceptionally with shorter timescales;

   information about any pre-and post-retirement services available from the contractor, the
    Authority and other relevant bodies;

   benefit award;

   notification to the pensions paying authority in good time for payment to be made
    promptly following the member’s retirement.
M43 In respect of all members leaving the PCSPS, notification to the Department of
Work and Pensions of the ending of contracted out employment.

M44 Complaints – Internal Dispute Resolution (IDR): operation of the 1st stage of the
IDR, and providing the Cabinet Office with information for the 2nd stage, as required by the
arrangements established in accordance with section 50 of the Pensions Act 1995 and the
Occupational Pensions (Internal Dispute Resolution Procedures) Regulations 1996 and as
set out in the PCSPS Pensions Manual. The two stages are:


        First stage

        A member has the right to receive, in response to a written complaint, an explanation of a
        decision made by the scheme administrator.

        Second stage

        The member has the right of appeal to the Cabinet Office against the scheme administrator’s
        decision.




                                                                                                      19
The Authority must be given copies of any written complaints, the Contractor’s decision, and
details of any actions taken by the Contractor in response to a second stage appeal, and the
Cabinet Office’s decision and any determination made subsequently by the Pensions
Ombudsman.
M45     Personal pensions mis-selling:

   information about equivalent PCSPS benefits to personal pension providers to assist
    them with their reviews of personal pensions mis-selling under Financial Services
    Authority arrangements;

   receiving of transfer value payments for existing PCSPS members to restore benefits
    lost as a result of pensions mis-selling;

   noting the outcome on the member’s individual record and informing the member;

   recovery of appropriate administration charges, as set by the Cabinet Office.

All employees, whether or not they are members of the PCSPS


M46     Upon receiving enquiries about, or a claim for, Personal Injury Compensation:

   notification to the Authority of all enquiries;

   consideration of the member’s claim;

   award of benefits where the claim meets the criteria in the PCSPS Scheme Rules;

   notification of the award decision to the member and, if appropriate, to the pensions
    paying authority.
NOTE: Authorities should ensure that this meets their requirements and working practices
and amend if necessary

The spouse or personal representative(s) of a member following death in service
NOTE: applies to classic, classic plus, premium and partnership members
M47     Correspondence, immediately upon notification of a death:

   expressing condolence;

   providing general information about benefits which may be payable;

   enclosing an application form;

   requesting a death certificate and any other evidence necessary to establish entitlement,
    including partner benefits.

   the Authority should also be notified of the deceased so that it can consider
    condolence action as former employer.
M48 Award appropriate scheme benefits, upon receipt of complete information,
including sight of the death certificate and valid beneficiary nomination (or letters of
probate), and



                                                                                                20
   notification to the pensions paying authority;

   notification of death to AVC provider where appropriate
Members of Parliament (MPs)/members of the Scottish Parliament (MSPs)/ Assembly
members(AMs)/ members of the Legislative Assembly (MLAs) and Members of the
European Parliament (MEPs)
M49    Full and helpful answers and information:

   when writing on behalf of their constituents; or

   when correspondence from a MP/MSP/AM/MLA or MEP is referred by the Authority to
    the Contractor for a reply to be sent; or

   when requesting information about the PCSPS.
Trade unions
M50    Full and helpful answers and information:

   when writing on behalf of their members; or

   when correspondence from a trade union is referred by the Authority to the Contractor
    for a reply to be sent; or

   when requesting information about the PCSPS.
Cabinet Office
M51 Such statistical and management information as the Cabinet Office may require from
time to time by means of an extract from the PenServer or equivalent database.
Information may include such details as the numbers of scheme members, pensionable pay,
length of service, age profiles, categories of retirements and similar.

Standards to be met
M52 The standards in M53 and M54 matched or bettered, subject to any revisions
made by the Authority during the course of the contract, in consultation with customers
and the contractor, in order to secure continuous improvement.
M53    General standards:
General standards shall include:
Communication shall meet the standards of Plain English, be helpful, courteous and
answer the enquiry first time. All standard documents and publications, for whatever
purpose must be accurate and written in plain English. These will have been agreed with the
Office at the start of the contract or as they become required;
Telephones shall be answered promptly. If the contractor’s staff are unable to provide an
immediate response they should agree a response time with the customer;
Identification: the contractor’s staff must identify themselves whenever dealing with any of
the customers identified in this ITT;
Retention of records Authorities to refer to their policy re the holding of paper
records (if any) in addition to the member’s PenServer record, and any requirements
for the APAC to hold additional records. See M18


                                                                                               21
M54    PCSPS Performance Standards

Minimum PCSPS service standards to be met are those set out in the PCSPS Pensions
Manual and as may be amended by the Cabinet Office from time to time.

The contractor may offer to provide service standards for the Authority to consider. These
standards should be:

      not lower than the minimum PCSPS service standards;

      ‘SMART’; - Specific, Measurable, Achievable, Relevant and Timely

      tuned to the requirements of the Authority or the members.

(The contractor should insert in the table below (or any similar document) details of the
service standards offered)




NOTE: Setting out any further standards in table form in an annex will help tenderers in
tendering and the Authority in evaluating tenders and in monitoring the operation of the
subsequent contract/SLA.


Scheme standards and targets should be subject to monitoring by the Authority through
reporting mechanisms agreed with the Contractor. Reports should provide assurance to the
Authority for signing the QSR, Annual Report and Accounting Officer’s Certificate.          The
Cabinet Office will use the QSR to monitor performance at the strategic level.


Note: The requirements in Sections B & C below are generally matters of compliance, rather
than performance

B:    Services to enable the outcomes, outputs and standards to be
delivered
Ownership of the database, pensions records and other information used




                                                                                                  22
M55 The database, pensions records and other information used will at all times remain
the property of the Authority and must be returned to the Authority, or otherwise handled in
accordance with the Authority’s instructions, in good accessible order at the end of the
contract. The contractor shall comply with the requirements of the Authority as regards the
capture and cleansing of all personnel data relevant and necessary for the delivery of high
quality pensions administration.
Tenderers are invited to describe to the Authority how they will ensure the accuracy of the
data.
NOTE: Authorities must ensure through their provider effective arrangements to maintain the
accuracy of its member data; recognising that the Authority provides the source data.

Innovation
M56 Tenderers should offer innovations, without prejudicing questions of IT security and
handling of personnel data and similar, to raise standards and value for money, working in
line with the themes from the Modernising Government White Paper.
Quality control and Continuous improvement
M57    The contractor shall continuously improve its own performance by:

   consulting Authorities and encouraging feedback;

   membership of the PCSPS Best Practice Club

   benchmarking against the best in the industry, and the best performers at the various
    components of pensions administration (e.g. customer service).
The contractor may propose improvements in services, standards and targets.
 M58 Describe your quality assurance and control procedures, and whether your
organisation has sought accreditation under any recognised accreditation schemes (for
example, Charter Mark, Investors in People, ISO 9000, BS 8600: 1999) and with what
result. Describe your organisation’s approach to continuous improvement, including any
involvement in benchmarking and give details of any future plans.
NOTE: BS 8600:1999 is the accreditation scheme for complaints handling launched in May
1999

NOTE: Authorities will need to consider how best to seek feedback from their staff and the
involvement of others such as departmental trade union representatives – see M16 also


Authorities may wish to specify regular meetings – see M4

Software
M59    The contractor must use the Cabinet Office approved software, PENSERVER.

Security




                                                                                               23
M60 The contractor shall at all times ensure the security of all information held or used in
providing the services in this ITT, the computer and any clerical systems in which they are
stored or used, the premises concerned and all other aspects of the service. It should
comply with the Cabinet Office PenServer System Manager’s guidance.
Payroll interface
M61 The contractor’s pensions administration system must be capable of receiving and
using such relevant pensions administration data as shall be transferred electronically or
otherwise from the Authority’s payroll provider.
NOTE: It is the Authority’s responsibility to have an electronic interface from its
payroll system to PenServer. If the Authority does not have an interface, the
arrangements for transferring members’ data should be set out here.
Staff
M62 The contractor shall ensure that its staff are properly trained to provide the services
required in this ITT. The contractor’s staff shall be subject to a confidentiality undertaking
with the Authority before being permitted to handle information relating to the staff of the
Authority. The contractor shall form a management team responsible for services to the
Authority, who shall monitor the services they provide, ensure that they are being delivered
to the standards required and shall pursue continuous improvement.
Workload fluctuations

M63 The contractor shall ensure that the standards required shall be continuously met,
regardless of times of pressure and times of low demand. Tenderers must set out in their
tenders proposals for dealing with such workload fluctuations.
Ensuring a continuous service

M64 The contractor must ideally have in place business continuity plans designed to
ensure that activities can continue in the event of a major disruption to staff systems or
premises. Alternatively, the contractor must at least have adequate contingency measures
which provide a reasonable safeguard against disruption of service resulting from fire, flood,
computer failure, power loss or other disaster and that the continuous operation of the
service is not compromised by any other contractual obligation. The contractor should
provide an outline of their business continuity plans (including details of any tests
undertaken) or contingency measures.
Staff transfers




                                                                                                 24
M65. EITHER :

The staff currently engaged in PCSPS administration for the Authority will not
transfer to the contractor.

OR

The staff currently engaged in PCSPS administration for the Authority are to transfer
to the contractor engaged following this ITT (if it results in a new contractor being
appointed). If that contractor is not part of central government, the Transfer of
Undertakings (Protection of Employment) Regulations (TUPE) will apply and the
contractor must offer broadly comparable future occupational pension provision,
subject to the approval of the PCSPS Scheme Actuary. If the contractor is a central
government body, TUPE will be observed in principle.
NOTE: Consult your legal adviser on the application of TUPE, also see ‘Staff Transfers in the
Public Sector: Statement of Practice’, Cabinet Office, 2000. (Available on the CSP website,
employers and APACs section).


Location of services
M66 The contractor shall provide services from the Authority’s premises identified in
Document 5, Section D.18.
NOTE: Include only if it is expected that requiring the use of the Authority’s premises will be
justified in value for money terms, taking account of economies tenderers may offer from, for
example, co-location.



C: Other requirements
Errors, omissions and mistakes
M67 The contractor must take full responsibility for errors in advice or calculations due
wholly or mainly to omissions and mistakes on the contractor’s part and the contractor must
meet the financial losses or cost of any compensation or other payments which may result
from such errors, omissions or mistakes.
NOTE: The Authority recognises its responsibilities to bear the costs arising from its own
errors or omissions. See Document 5, Section C13(l)
Confidentiality
M68 The contractor shall at all times ensure the confidentiality of members’ records and
information provided by members, which must never be disclosed, except in accordance
with the contract to a third party. Tenders should set out their proposals for ensuring this
confidentiality.
Audit
NOTE: Repeat for emphasis provisions in Authority’s standard contracts/SLAs




                                                                                                  25
M69 The contractor shall have a regular programme of internal audit to a professional
standard, and the results of such audits covering any part of the Authority’s business must
be made available to the Authority. The contractor will send an executive summary of any
audit report to the Authority.
M70 Audit: The contractor, shall allow the National Audit Office (NAO), and the Cabinet
Office access to all records related to services provided to the Authority under the contract /
SLA and shall provide explanations and assurances on the regularity of expenditure and the
accuracy of processes followed in providing these services.
The Contractor should describe their internal audit arrangements, and detail the
qualifications of their internal auditors.
Compliance with relevant legislation
M71 The contractor must at all times comply with all relevant legislation, including, for
example: pensions legislation, the Data Protection Act 1998, the Human Rights Act 1998,
the Copyright Design and Patents Act 1988, the Computer Misuse Act 1990.
Protecting the environment
NOTE: Insert key points of the Authority’s green housekeeping strategy. Those listed below are
based on good practice in ITT documents generally.

M72 Contractors must satisfy themselves that no product will be supplied or used in
providing PCSPS administration services, under the contract, that:

   will endanger the health of customers or others;

   will cause significant damage to the environment during manufacture, use, or disposal;

   consumes disproportionate amounts of energy during manufacture, use or disposal;

   causes unnecessary waste because of over-packaging or because of an unusually short
    shelf life;

   contains materials from threatened species or threatened environments.
Transition
M73 The contractor shall develop and propose a transition plan for the implementation of
the Authority’s pensions administration requirement and shall follow the transition and
implementation plan as finally agreed with the Authority.
Reviewing requirements
NOTE: Authorities will need to consider carefully the appropriate allocation of risk.

M74     The contractor shall implement, within the agreed contract price or , exceptionally,
as may be subsequently revised with the agreement of the Authority, changes made in
these requirements:

   In the light of changing customer requirements and other circumstances and the
    contractor’s performance;

   Should there be any machinery of government changes affecting the Authority;

   In the light of changes in legislation or the Rules of the PCSPS.



                                                                                                  26
M75 The contractor shall meet, within the agreed contract price, such revised and
improved standards and targets as the Authority may require and notify to the contractor, in
the light of standards and targets agreed with the contractor as reflecting that being
achieved generally for PCSPS administration.
NOTE: Each Authority will need to consider revisions to standards and targets in the light of
the contractor’s performance, the Authority’s fulfilment of its obligations, the need for
continuous improvement and the results of benchmarking




                                                                                                27
                                                                                       DOCUMENT 5
                                                                                 CONTRACT REF: XXX/02



     INFORMATION ABOUT THE AUTHORITY, THE PENSIONS SCHEME
        AND FACILITIES AVAILABLE TO THE SELECTED TENDERER

A:      The Authority
     1. [Brief description of the Authority, its responsibilities, its locations (either general –
     e.g., “in every major town and city in Great Britain” – or, specific – e.g., “in Cardiff and
     Aberystwyth” depending on the Authority’s size and the need to be succinct), numbers
     of staff, Authority’s web-site address (so that tenderers can read up on the Authority)
     any other key information]
NOTE: Refer to any other current, predecessor or defunct bodies whose former staff look to
the Authority for PCSPS services and who will therefore be covered by the contract.

B:      The Pension Scheme
The PCSPS
2. The PCSPS is established under the Superannuation Act 1972 and is the occupational
     pensions scheme for staff in government departments and their agencies and some non-
     departmental public bodies. It is an unfunded scheme with benefits paid out of monies
     voted annually by Parliament.
3. The scheme consists of three defined benefit elements, classic, classic plus and
     premium. Classic and classic plus are closed schemes, open only to members in post
     on 30 September/1 October 2002, although former members may rejoin these schemes
     on re-employment in certain circumstances.
4. The majority of new entrants to the scheme have a choice between premium and
     partnership pension account, a defined contribution, stakeholder-type pension. Some
     new entrants, notably casuals and most re-employed pensioners, are eligible to open a
     partnership pension account only.
        Premium pension scheme
            A pension based on years of service and final pensionable earnings, with a
            member contribution rate of 3.5% of earnings.
        partnership pension account
            A personal pension, on the Stakeholder pension model, with an employer
            contribution based on member age. On top of this, the employer will match
            member contributions £ for £ up to 3% of pay.
5. All eligible staff are entered on appointment to premium. If they choose to open a
   partnership pension account within 3 months, their contributions to premium are
   unscrambled to their start date.
6. classic members pay 1.5% of salary mainly towards the provision of widows(er)s’ and
   other dependants’ benefits. classic plus and premium members pay a contribution of


                                                                                                     28
   3.5% of salary. Members with a partnership pension account do not have to contribute
   anything, but any contributions up to 3% will be matched by the Authority, plus an
   employer’s contribution. Members may also choose to make specific additional
   contributions for added years and some other purposes.
7. There are over 280 PCSPS employers. The PCSPS has been amended from time to
   time since its creation.
8. The Contractor will be required to provide the Authority with a full pensions
   administration service in respect of both the existing PCSPS (classic and classic plus)
   and the new pension scheme’s Defined Benefit arrangement (premium). Administration
   arrangements for the partnership pension account will cover advice and information to
   members regarding the scheme booklets, administering partnership pension account ill-
   health retirement and death benefit provision.
9. Three financial institutions – Standard Life, Scottish Widows and Equitable Life – have
   been appointed in respect of additional voluntary contributions made by members under
   the CSAVC Scheme. The providers conduct a large part of the administration of the
   CSAVC scheme and the Contractor will need to work closely with all these institutions.
10 Most civil servants and the staff of NDPBs who are PCSPS employers are eligible to join
premium or partnership. The exceptions are: casual staff, those engaged on a fee or
sessional basis and most re-employed PCSPS pensioners, who are eligible to open a
partnership pension account only. Also excluded are those whose special requirements
mean that they are covered by another occupational pension scheme, and those whose
letter of appointment specifically excludes them. Membership of the PCSPS is not
compulsory and staff may opt-out.


Administration of the PCSPS
   11. The Minister for the Civil Service has formally delegated responsibility for the
   administration of the PCSPS in respect of the Authority’s staff and/or the staff of [insert]
   to the Authority*. There are [number] PCSPS members in the Authority and/or staff of
   [insert]*. The range of PCSPS administration activities, under this delegation, covers
   all pensions aspects ranging from admitting new members, to advising members on
   benefits and entitlement, to making awards. Payment of benefits is not delegated to the
   Authority but is instead subject to separate contractual arrangements managed by the
   Cabinet Office (see Document 4, para 4). Under the terms of the Authority’s Delegation
   Instrument, the Authority is required to engage the services of an Authorised Pensions
   Administration Centre (APAC) to undertake its pensions administration. It is the
   intention of this Authority to outsource fully its pensions administration to an APAC as a
   strategic partner – either under a contract with a private sector body, or a service level
   agreement with another central government organisation (as set out in Document 8).
   The Authority is seeking continuous improvement in quality and value for money
   brought about by innovation and sound management.


NOTE: Text for use by employers with direct delegations (including delegations for
Schedule 1 bodies). Where the ITT is for pension administration for a Schedule 1
body only, use alternative text below.
   11. Responsibility for the administration of the PSCPS in relation to the Authority’s staff
   cannot be formally delegated to the Authority by the Minister for the Civil Service.
   However, the Authority is treated as if a formal delegation was in place and the
   Authority is accountable for the day to day administration of the PCSPS in respect of its


                                                                                                  29
     staff. There are [number] PCSPS members in the Authority. The range of PCSPS
     administration activities, under this delegation, covers all pensions aspects ranging from
     admitting new members, to advising members on benefits and entitlement, to making
     awards. Payment of benefits is not delegated to the Authority or the sponsor
     department but is instead subject to separate contractual arrangements managed by
     the Cabinet Office (see Document 4, para 4). Under the terms of the Authority’s
     Delegation Instrument, the Authority is required to engage the services of an Authorised
     Pensions Administration Centre (APAC) to undertake its pensions administration. It is
     the intention of this Authority to outsource fully its pensions administration to an APAC
     as a strategic partner – either under a contract with a private sector body, or a service
     level agreement with another central government organisation (as set out in Document
     8). The Authority is seeking continuous improvement in quality and value for money
     brought about by innovation and sound management.


Authority’s current arrangements for PCSPS administration
12. Currently, such activities are:
      - summarise how the Authority’s PCSPS administration is provided currently
     ~ state whether administration services are provided fully in-house, partially
outsourced, or fully outsourced
      ~ give the location(s) of the work
      ~ indicate number of staff involved, both by the Authority and by its current contractor
(if any) and the other resources used].
C:      Obligations that will be met by the Authority
13. The Authority recognises that it must enable the contractor to deliver the outputs
specified in the Statement of Service Requirements to the performance standards required
by acting reasonably at all times and by passing on to the contractor any information given
to the Authority, or requested by the contractor, relevant to outputs that are to be provided
under this contract. This undertaking shall not have the effect of removing from the
contractor and passing to the Authority responsibility for delivering the outputs specified to
the standards required. In particular, the Authority will:
a) Forward to the contractor information it receives relevant to the performance of the
contract / SLA, within 2 working days of its receipt, or 5 working days if the Authority has to
amend the information in any way;
NOTE : Authorities to insert their timescale requirements
b) Provide for the effective and timely transfer of relevant, accurate and up to date
information from the Authority’s payroll provider to the contractor ensuring the necessary
software interface between pension and payroll provider;
NOTE: Where there is no electronic interface from payroll to PenServer, you should state
how you intend information to be transferred.
c) Answer enquiries from the contractor relating to the performance of the contract and
individual cases within 1 working day or, if the issue is complex and upon notice to the
contractor, 5 working days;
d) In exceptional cases, including referral to the Cabinet Office, where these times cannot
be honoured, the Authority will provide interim responses, advising of progress, initially


                                                                                                  30
within these times and each 10 working days thereafter;
e) Notify the contractor of the arrival of new staff in format and within timescale to be
agreed with contractor;
f) Provide through its payroll authority for the transfer to the CSAVC provider within 3 days
of the member’s pay date of any additional voluntary contributions under the CSAVC
Scheme deducted from payroll;


g) Inform the contractor of a member’s death in service immediately that it is known to the
Authority’s personnel office;
h) Give reasonable notice, not less than 40 working days, of any planned early departure
programmes involving 5 per cent or more of the Authority’s staff, or any proposed inwards
or outwards transfer of staff with their work, to enable the contractor to prepare for the
temporary additional workload that will result (but the Authority will not be able to give
warning of any machinery of government changes affecting the Authority ahead of any
ministerial announcement);
i) Notify the contractor of the departure date of any member of staff leaving the Authority,
other than on age retirement, including under any of the arrangements in Document 4, M24
(loans and transfers), M35 (early severance, etc) and M36 (transfers with work) not less
than 20 working days before departure;
j) Notify the contractor of the impending normal-age retirement of any member 6 months
before the retirement date, or exceptionally (and with an explanation) a shorter time, not
less than 3 months before the retirement date;
k) Not compromise the contractor’s responsibility for carrying out the services in the
Statement of Service Requirements in Document 4, by providing similar advice or services.
l) Bear any cost arising from errors or omissions by its staff. See M67 for corresponding
contractor’s responsibility

D: Facilities Available to the Selected Contractor
14. Information on the PCSPS: the Authority will make available to the contractor the
Rules of the PCSPS, the PCSPS Pensions Manual, and details of the Pensions
Administration Control Framework document and all other PCSPS publications including
booklets for scheme members.
15. As necessary, pensions records will be transferred from the Authority/existing
contractor. These records are [state whether all records are electronic any whether any,
and their volume, are on paper, not forgetting records relating to former members, including
those from predecessor or defunct bodies]. The new contractor shall meet with the
Authority and agree an inventory and satisfy the Authority that all records have been safely,
completely and securely transferred.

16. Software cannot be transferred and, as stated above (see Document 4, M59), the
contractor will have to use PenServer software as approved by the Cabinet Office.
17. The Authority shall ensure that its payroll provider meets the requirements for an
effective IT interface between it and the contractor allowing for the proper, accurate and
timely exchange of all payroll held information relevant to effective and efficient pensions
administration. NOTE: See 13b) above.



                                                                                                31
18. Accommodation:
EITHER:
The contractor should provide the services required from their own accommodation.
OR:
The Contractor may/shall (see Document 4, M66)] make use of office accommodation
available in the Authority’s premises, [as detailed in the attached Schedule [3]]. If a
tenderer wishes to take advantage of this, the costs should be reflected in their
tender
Delete as appropriate
19.   Centrally provided services:
Centrally provided services If the successful tenderer were to provide services from
the Authority’s accommodation, the following central provided services would be
available:
[List, on Schedule 3, the services the Authority is prepared to offer: e.g., messenger
services, reception services, postal services, photocopying, canteen, cleaning, car parking,
toilets etc, as appropriate].
NOTE: Generally these should be offered free, unless the Authority charges internally for
such services, in which case the contractor should also be charged.




                                                                                               32
                                                                                    DOCUMENT 6.
                                                                                 CONTRACT REF: XXX/02


INFORMATION RELATING TO STAFF TRANSFERS


Either:
  TUPE Information

  1. No staff are expected to transfer to the Contractor.


  OR
  TUPE Information

  1. As stated in the ITT, staff will transfer to the new contractor (if a new contractor is
  chosen in this tendering process). TUPE will apply, therefore, if the new contractor is
  not a central government body. If the new contractor is a central government body,
  TUPE will be honoured in principle.
  NOTE: Authorities must read Staff Transfers in the Public Sector: Statement of Practice, Cabinet
  Office, 2000. You should consult your current APAC and your legal advisors on the application
  of TUPE


  2.   Information about staff that tenderers will need to frame in their tenders is in the
  table annexed.


  [Provide accurate information on the staff who will transfer, in particular:


  a) the number of staff, but not necessarily their names at this stage as the information is
  required to enable a tender to be constructed;
  NOTE: Distinguish staff working for the Authority and those working for any current contractor


  b) in respect of each, their age, sex, pensionable salary, length of reckonable service, hours
  of work, overtime hours and rates, any other factors affecting redundancy entitlement, and
  any outstanding claims arising from employment;


  c) general terms and conditions applicable to those members of staff, including: probationary
  periods, retirement age, periods of notice, current pay agreements, working hours,
  entitlement to annual leave, sick leave, maternity and special leave, terms of mobility, any
  loan or leasing schemes, and relevant collective agreements, facility time arrangements and
  additional employment benefits.



                                                                                                     33
Pensions information

3.   The staff who will transfer are all [members of the PCSPS]. Tenderers who are not
PCSPS employers must offer future occupational pension arrangements that the
Government Actuary’s Department can certify as being broadly comparable to the
PCSPS.
NOTE: Any exceptions e.g. optant outs, should be identified and details of their pension rights given
after the information on PCSPS


Information about the PCSPS is available on the CSP website.
4. Your proposals must include:


    a detailed description of the pension benefits that are to be offered to transferring
     staff, including commutation factors;


    confirmation that the scheme will be set up as a trust fund separate from the
     employer and will satisfy the requirements of the Inland Revenue in order to attain
     exempt employer status;


    details of the MFR (Minimum Funding Requirement) solvency of the proposed
     scheme;


    whether the proposed scheme is to be contracted out of the State Second Pension
     Scheme (S2P);

5.   The proposed scheme must be certified by the Government Actuary’s Department
as meeting the requirement of broad comparability.


NOTE: Authorities must not enter into any undertakings with tenderers until the Government
Actuary has approved the proposed future occupational pensions provision as “broadly
comparable” to the PCSPS. The Government Actuary should be asked to consider all short-
listed proposals before a selection is made, as this is a relevant consideration in appraising
tenders
Bulk transfers

6. Transferring staff should be offered the opportunity of transferring their accrued
PCSPS benefits into the new (non-PCSPS) employer’s occupational pension scheme
on enhanced (‘bulk transfer’) terms, and tenderers will need to discuss with the
Government Actuary’s Department the basis on which this will be achieved. Tenders
in response to this ITT, should record the present state of any such discussions to
date. Tenderers should note that agreement on the terms of a bulk transfer is required

                                                                                                        34
as part of a successful bid.
NOTE: See PCSPS Pensions Manual, volume 8 section 9


NOTE: Tenderers’ attention is drawn to the further information provided in Staff
Transfers in the Public Sector: Statement of Practice, published by the Cabinet Office
in January 2000 (available also on:
Www.cabinet-office.gov.uk/civilservice/2000/tupe/stafftransfers.pdf)




                                            35
                                                                                 DOCUMENT 7.
                                                                            CONTRACT REF: XXX/02


                       SELECTION AND EVALUATION CRITERIA


Selection


The Authority will select the tender that is most likely to deliver value for money –
that is, the optimum combination of whole life cost and quality to meet customer
requirements. However the Authority is not bound to select any tenderer if none
satisfy the evaluation criteria sufficiently or if circumstances change.

NOTE: If tenderers have not been pre-qualified by the Authority, Authorities should add,
before criteria related to the SSR:


 management and financial viability of the tenderer;
 knowledge of, and ability to administer the PCSPS in order to satisfy the Authority and the
    Cabinet Office that they should become an APAC
 track record on human resource issues;
 track record on the environment and other areas of Government policy relevant to the
    contract.


Questions on these points should be added to Document 3, Part 2.1

Evaluation
The evaluation will be based on the information provided in response to this ITT. All items
requested in Document 3 must be provided in order for a tender to be considered. The
criteria are as follows:

     each tenderer’s proposal to fulfil the Statement of Service Requirements to at least the
      quality and performance standards specified;

     confirmation of Authorised Pensions Administration Centre status;

     the levels of quality and performance proposed, compared with the minimum standards
      in the Statement of Service Requirements;

     the management approach and staffing proposed to fulfil the SSR, especially compared
      with the Authority’s observations at reference sites;

     use of PenServer software;

     security, business continuity and confidentiality guarantees;

     implementation and transition plans;

     quality of documentation proposed;

                                                   36
   the innovation proposed and the degree of improvement it will bring, the viability of the
    innovation proposed, and the tenderer’s ability to introduce and manage the innovation;

   the tenderer’s proposed approach to monitoring and providing performance
    management information, including but not limited to that required for the Quarterly
    Stewardship Report, and the Annual Accounting Officer’s Certificate;

   the costs to the Authority over the life of the contract – the cost and quality appraisal will
    be made in accordance with Appraisal and Evaluation in Central Government: “the
    Green Book”, published by HM Treasury – when compared with current costs;

   the balance of risk in the proposals between the Authority and the tenderer.




                                                   37
                                                                                    DOCUMENT 8.
                                                                             CONTRACT REF: XXX/02


      PROPOSED CONTRACT / SERVICE LEVEL AGREEMENT (SLA)

Structure of the contract / SLA


1. The proposed contract or SLA is enclosed with this ITT. It consists of the following
   documents:
Section 1. Form of agreement
NOTE: Attach your Authority’s standard Form of Agreement

Section 2. Conditions of contract / SLA (the proposed contract is being sent to invited
tenderers that are not central government organisations and the proposed SLA to invited
tenderers that are part of central government).
NOTE: Attach your Authority’s standard contract or SLA, as appropriate. Authorities will need
to determine the notice period for termination of the contract.

Section 3. Statement of Service Requirements - set out in Document 4


Section 4. Schedule of prices (Schedule 1)
NOTE: See Document 3 Part 8.

Similarities between a contract and a SLA
2. A contract is between two bodies separate in law that can be enforced at law. Because
   the Crown cannot contract with itself, a SLA is the form of quasi contract used when one
   central government organisation provides services for another. It is enforceable by
   administrative and management action. A contract and a SLA cover essentially the
   same ground, except that several explicit items in a contract are covered in terms and
   conditions of service (or elsewhere) and implied in the SLA. Typically, the relationship
   between a contract and SLA, is as shown below:
NOTE: Text taken from CUP Guidance Note 44, Service Level Agreements (now withdrawn and
replaced      by      OGC       Procurement        ‘Workbooks’      on      their     website.
(http://www.ogc.gov.uk/SDToolkit/workbooks/procurement/index.html) and included to give
confidence to tenderers that they are being treated fairly


Authorities may wish to adjust the order of items as necessary to fit with their own standard
contract and SLA. If so, “Typically” should be deleted




                                                   38
       Contract conditions                              SLA sections

No                  Heading                  No             Heading/Comment

1    Definitions                             1    Definitions

2    Services                                2    Services

3    Recovery of sums due                         Not appropriate

4    Value Added Tax                         3    VAT - if consent given to sub-
                                                  contract

5    Bankruptcy                                   Not appropriate

6.   Racial discrimination                        Covered in terms & conditions of
                                                  service

7    Transfer, sub-letting & sub-            4    Transfer, etc - if sub-contracting
     contracting                                  allowed

8    Corrupt gifts & payments of                  )
     commission

9    Drawings, specifications & other data        }Covered in terms & conditions of
                                                  service

10   Use of documents, information etc            )

11   Disclosure of information                    )

12   Law                                          Irrelevant: SLA does not give rise to
                                                  legal rights

13   Arbitration                             5    Resolution of Disputes

14   Official Secrets Act                         )

15   Security measures                            )

16   Approval for admission to                    )
     government premises and information
     about staff                                  )

17   Observance of regulations                    )

18   Safety                                       )

19   Accidents to contractor’s servants or        )
     agents
                                                  }Covered in terms & conditions of
                                                  service

20   Special health and safety hazards            )

21   Liability in respect of damage to            )
     government property
                                                  )

22   Contractor’s property                        )

23   Intellectual property rights                 )

24   Patents                                      )

25   Default                                 6    Default

26   Insurance                                    Not necessary

27   Duty of care                            7    Duty of care



                                                            39
 28   Design liability                            )

 29   Issues of government property               }Covered in terms & conditions of
                                                  service

 30   Personal injury and loss of property        )

 31   Hours of work                          8    Hours of work (although covered by
                                                  terms & conditions of service,
                                                  included because the award of the
                                                  SLA may entail changes in working
                                                  patterns)

 32   Occupation of government premises      9    Occupation of government premises

 33   Contractor’s organisation              10   Agreement holder’s organisation

 34   Break                                  11   Break

 35   Facilities provided                    12   Facilities provided

 36   Duration of contract                   13   Term of agreement

 37   Variation of requirement               14   Variation of requirement

 38   Contract documents                     15   Agreement documents

 39   Amendments to contract                 16   Amendments to agreement

 40   Monitoring and liaison meetings        17   Monitoring and liaison meetings

 41   Price                                  18   Price

 42   Price fixing                                Covered in terms & conditions, and in
                                                  requirements of “Government
                                                  Accounting”

 43   Lead-in costs                               Not appropriate

 44   Payment                                19   Allocation of costs

 45   Payment of sub-contractors                  Not necessary – any “sub-
                                                  contractors” would be main
                                                  contractors of the Authority

 46   Availability of information                 Covered by terms & conditions of
                                                  service

 47   National Audit Office access                National Audit Act gives access, so
                                                  no specific provision needed

 49   Quality assurance                      20   Quality assurance

 50   Transfer to another contractor         21   Transfer of responsibility



3. A non-central government body may receive a copy of a SLA upon request – and vice
   versa (in which case, copies will be sent also to all others invited to tender – see
   Document 2, paragraph 9).
Proposing changes to the contract or SLA
4. Tenderers may, without prejudice to the Authority’s consideration of all tenders, propose
changes to the standard terms and conditions of contract or SLA, either:

 in a compliant tender that is not rendered non-compliant by the proposals;
 or, with the Authority’s prior consent


                                                          40
 in a non-compliant tender that accompanies a compliant tender;
and when (in either case) the proposal can be shown as likely to result in significantly better
quality and performance, innovation and value for money. The proposed changes should
be set out in the attached Schedule 2

                                            Schedule 2
           Description of;             Quality/performance gain            Cost adjustment
a) compliant amendment & proposed        - to be quantified and
wording                                       measurable
b) non-compliant amendment &
proposed wording



Charging for Services
5. All invoices must include a detailed breakdown of what each charge relates to including,
where appropriate, names and dates;
   Charging should be made monthly in arrears.
   Errors in calculation –
    the contractor must take full responsibility for errors in calculation which are wholly due
    to errors on their part. If these errors result in a loss to the Authority the service supplier
    must meet that loss in full;
    the mechanism for unresolved disputes over errors and losses to be resolved via an
    agreed dispute resolution procedure, which will be developed as part of the tendering
    process.
   any agreement for provision of a service must include a policy for refunds [in part or in
    full] of the monthly charge should the service supplier fail to meet agreed quality
    standards in the quarter in question.
NOTE: Authority should insert any additional requirements. The agreed Schedule of Prices
(Schedule 1, see Document 3, Part 8) should be finalised during contract negotiations and
attached to the contract.

Freedom of Information
6. Tenderers should note that the Authority cannot undertake not to reveal the agreed
contract price, nor to accept the obligations of commercial confidentiality in any way that
would deny citizens their right to know how much public service cost and who provides
them.
Re-tendering and transition to a new contract
7. The contract/SLA will require the contractor to:
   facilitate the retendering of the contract in due course, by providing information that the
    Authority may request, including information relating to staff transfers;
   co-operate fully to ensure a smooth and effective transition to any new contractor.




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