2015 Report details for project: NHS Pension Re-let Project

Project name: NHS Pension Re-let Project - there are 5 reports for this project: 2015, 2016, 2017, 2018, 2019
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Organisation: DOH (D12) - see all reports for this organisation
Report year: 2015 (data is from Sept 2014)
Category: Transformation - see all reports for this category
Description: The NHS Pension scheme is available to all current and past NHS Employees and has circa 2.2 million members. Currently administered in a co sourced model, through two providers, Equiniti Paymaster and the NHS Business Services Authority (NHSBSA, an ALB to the DH), the Equiniti Paymaster element is due to expire in July 2016. This project has been established to replace the contract that is to expire, ensuring there is no break in the SofS's ability to meet its statutory requirements to offer the NHS Pension scheme. The project will ensure the on-going provision of a pension service to the NHS and that this service is provided in the most effective and efficient way following expiry of the current contract. The specific aims of this project are to:- a) deliver a service that does not adversely affect NHS Pensions business performance and allows continuity of the 1995, 2008 and 2015 pensions service; b) adopt a fit for purpose commercial solution ensuring sufficient flexibility to accommodate transformational change; and c) improve the experience of employers and employees. In delivering these objectives, the project will aim to:- 1) make provisions for the forthcoming expiry of the contract which covers the functions currently carried out by Equiniti Paymaster and outsource the remainder of the pensions function currently provided in-house; 2) transform the current administration service, to improve customer experience and increase efficiency; 3) ensure the revised pension administration service is agile to change; 4) ensure that the procurement delivers efficient innovative solutions for managing the cost and process of change and delivers a structure which creates coherent incentives for engagement and innovative thinking from all parties; 5) ensure that the resultant systems meet current and future needs and are value for money; 6) ensure that the service is fully and effectively aligned with relevant policies to create value in the delivery of policy as well as within operational services; and 7) support the platform upon which DH workforce can develop future Total Reward Strategies.
DCA (RAG): Amber/Red
DCA text: The MPA RAG rating was Amber/Red at Q2 2014. Although the project was progressing as fast as possible, it was unlikely to be completed within the scheduled timescale (July 2016) primarily due to business case approvals timescales required and the need to undertake a GDS recommended discovery phase activity ahead of the production of the SOC. In addition an MPA recommended independent risk review by Mazars LLP concluded that the proposed project schedule of July 2016 posed a significant risk of distraction to the 2015 Scheme Implementation project, a view endorsed by key stakeholders within the NHSBSA, Cabinet Office and Department of Health and direction was given to: • Extend the project schedule to July 2017, to mitigate any risk to the 2015 Scheme Implementation project. • Change the future procurement approach to a disaggregated model in line with Cabinet Office guidance to: o Undertake further discovery work to identify options for a short term tactical solution to deal with the expiry of current EP Payroll Services in July 2016 (EP Interim Extension), ahead of the production of the Interim Business Case (IBC) o Undertake further discovery work to identify options for a medium term strategic solution for the full pension re-procurement, ahead of the production of the Programme Business Case [PBC]. Even when the above are complete, both streams of procurement are likely to evolve as the final level of procurement options (disaggregation) become known. As a result the project will continue to carry a high degree of risk, reflected in the RAG status. The actions required to bring the RAG status back to green are: • IBC approval (December 2014) and completion of commercial negotiations with EP to determine the level of disaggregation for the short term solution (March 2015). • PBC approval (April 2015). • Project re-Planning and re-base lining of Project Initiation Documentation (December 2014).
Start date: 2013-07-05
End date: 2017-07-31
Schedule text: Following stakeholder direction, the project schedule was extended to July 2017 and project progress is on track
Baseline: £1.70m
Forecast: £1.70m
Variance: 0.00%
Variance text: Budget variance less than 5%
Whole Life Cost: £1.90m
WLCost text: The costs above are derived from the original Project Verdi until further work is completed to prepare the Interim Business Case (IBC) and Programme Business Case (PBC). It is expected these will vary from those quoted above as the these take shape. No budget has been approved in future years pending submission of these. It is expected that the IBC will be available by December 2014 and the Programme Business by April 2015. Elements of the overall re-procurement project may be undertaken this financial year and these will be subject to separate business cases if the IBC & PBC are approved. Operating costs (circa £24m) for the current project are not included as they are part of the Pensions 2015 Implementation scheme.
Notes1: DOH NON CAPITAL
Notes2:
Sourcefile: IPA_2015.csv

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