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Nest administration contract worth £600m
The contract for the administration of the National Employment Savings Trust (Nest) scheme awarded to Tata Consultancy Services is valued at £600m.
Tim Jones, chief executive of the Personal Accounts Delivery Authority (Pada), said the total 10-year contract would be worth about £600m.
Mr Jones said the cost was based on between 4.5m and 5m saving members enrolled into the scheme, adding: "A large number of people will be automatically enrolled onto the scheme".
The contract - which has been split into three terms - will see Tata paid £25m for the first term, leading up to October 2010, if the scheme were to be scrapped by a future government.
Mr Jones said the scheme was on track to launch by the second quarter of next year, with the first employer on the scheme in April 2011 and the first contribtion to arrive in May.
