DWP civil services pensions staff go private in mutual move
One and a half million civil service pensions to be overseen by mutual in plan to reduce public spending.
The government has launched MyCSP, a for-profit business contracted to administer the pensions of 1.5 million civil servants and staffed by up to 500 former Department for Works and Pensions staff.
Launched by minister for the Cabinet Office Francis Maude, the company’s mutual joint venture structure will give employees a 25 per cent ownership stake, representation at board level and a share in profits.
Private sector firm Equiniti Group’s Paymaster business will have a 40 per cent stake in the venture and the government will retain a 35 per cent stake.
Former cabinet minister Lord Hutton will be the first chairman of MyCSP. Mark Lund, former chief executive of St James’s Place Capital, will be the chairman of the MyCSP Employee Partnership Trust, charged with protecting employees’ interests.
The scheme aims to halve costs to taxpayers by 2022.
MyCSP was first announced in April 2011, but the launch has been delayed due to wrangling with unions over the structure of the new organisation.
Stephen Kelly, the government’s nominated board director for the company, said: “The mutual joint venture model can open up employee ownership as an option for thousands of public services which would simply not be viable as a traditional mutual.
“Forming partnerships with the private sector can give mutuals the capital backing and business expertise they need to thrive and grow.”