§ Mr. RoweTo ask the Secretary of State for Education and Employment if she will make a statement on the future administration of the teachers' superannuation scheme in England and Wales. [24471]
§ Mr. Robin SquireMy right hon. Friend the Secretary of State has decided to let a seven-year contract for the administration of teachers' pensions in England and Wales to Capita Managed Services Ltd. This will give savings to the taxpayer of about £20 million over the life of the contract.
We have consistently said that we will let a contract to the private sector only if it can be proved that it will give better value for money than keeping the administration of the teachers' superannuation scheme in the public sector. Capita Managed Services is committed to providing the high standards of service and performance that we have demanded, and has a record of doing so in other contracts. Capita will take over the administration of teachers' pensions on 1 October 1996.
Capita has declared its intention to maintain the administration of the TSS in Darlington. It is committed to a business growth strategy on the Darlington site. This commitment to Darlington, together with the transfer of the staff of the Teachers' Pensions Agency under the Transfer of Undertakings (Protection of Employment) Regulations 1981 offers the staff of the agency good prospects for the future.
The contract with Capita will concern only the administration of the TSS. The scheme itself will stay in the public sector, on its current statutory basis, and teachers' pensions will not be affected in any way. My right hon. Friend will remain responsible to Parliament for the scheme. Officials in the Department for Education and Employment will be responsible for advising Ministers on policy on teachers' pensions.