Pada appoint Nest scheme administrator

The contract awarded to Tata will be divided into two stages, running over 10 years, with possible extensions for up to a further five years.

Tim Jones, chief executive of Pada, welcomed the appointment of Tata, which came after an extensive tender process.

He said: "As we proceeded through our detailed procurement process Tata Consultancy Services emerged as an extremely strong bidder, both in terms of their capabilities in pension administration and in their ability to provide value for money for Nest members.

"Signing the contract early, in stages, allows us to get on with our work to deliver Nest."

The first stage of the contract will run to October 2010, allowing Tata to begin setting up and administer Nest, before a decision is made over whether it will continue to administer the scheme.

Angela Eagle, minister of state for pensions and the ageing society, said: "I congratulate Tata Consultancy Services on their success in the competition to provide the scheme administration services for Nest, which will be central to the new pensions landscape.

"Together with automatic enrolment, Nest will help millions of people save for their retirement, with a guaranteed employer and Government contribution."