Shared Additional Voluntary Contributions Scheme

Concepts

• administration services
• derby
• derby city council
• local government pension scheme
• additional voluntary contributions scheme
• introduction of a shared cost avc scheme
• additional voluntary contributions
• veat
• lgps
• national insurance savings

Location

Derby

Description

Derby City Council intends to contract for Additional Voluntary Contributions (AVCs) services, as a fully managed solution including a dedicated website, incorporating an administration facility to fully manage employee applications and salary sacrifice data. The Council has published this VEAT notice and intends to award a contract following a 10 day standstill period for this notice.

Total Quantity or Scope

Additional Voluntary Contributions (AVCs) allow employees to build up extra pension savings for retirement. The Local Government Pension Scheme (LGPS) has a provision within its regulations to allow an employee to enter into an agreement in which the employer can decide to also contribute to their employee's AVC arrangement thus allowing for a salary sacrifice arrangement to be established. The introduction of a Shared Cost AVC scheme would generate National Insurance savings for both the employee and the employer. The service provider will deliver a fully managed solution including a dedicated website, incorporating an administration facility to fully manage employee applications and salary sacrifice data. The fee will be paid out of the National Insurance savings made by Derby City Council from colleagues participating in the scheme. It is anticipated that numbers in the scheme will increase over time so whilst the charges each month could increase so would the savings.

Award Detail

CPV Codes

• 75100000 - Administration services
• 79631000 - Personnel and payroll services

Indicators

• Award on basis of price and quality.

Legal Justification

The Council believes that there will be an absence of competition for technical reasons. The Council understands only one service provider can offer a fully managed solution, including a dedicated website, incorporating an administration facility to fully manage employee applications and salary sacrifice data, without additional costs and data sharing/processing arrangements i.e. operational requirements, implementation activities and costs would make alternative bidders uncompetitive.

Other Information

The contract value has been based on estimated demand across the contract duration. It is proposed to directly award a contract without prior publication of a call for competition and consider procurement options for a replacement longer term contract 18 to 30 months into the proposed contract duration. The Council intends the new contract to commence from spring/summer 2021 and run for 36 months. … The Council will consider procurement options for a replacement longer term contract 40 to 50 months into the proposed contract duration.