The government has launched a mutual joint-venture arrangement to administer the Civil Service Pension Scheme.
The mutual joint-venture model, which was announced by Francis Maude, minister for the Cabinet Office, gives employees a 25% ownership stake, representation at board level and a share in profits.
The arrangement, MyCSP, will be contracted by the government to administer pensions for 1.5 million members of the Civil Service Pension Scheme. It is designed to cut costs for taxpayers, reaching annual savings of 50% by 2022.
The Equiniti Group’s Paymaster business has won the tender to join the venture with a 40% stake.
Maude said: “We no longer face a binary choice between public services delivered by state monopoly and straight privatisation. That is why I am a passionate supporter of mutuals, which will help Britain grow a more diverse economy.
“As a mutual, MyCSP will deliver better services for its pension scheme members, millions of pounds of savings for the taxpayer, and a real sense of ownership for employees over what they do.
“We are transforming a neglected back-office operation into a new competitive and responsible business.”
Phil Bartlett, chief executive officer at MyCSP, added: “Such innovations are vital to protecting frontline services while helping to bring public spending back under control. A diverse and innovative marketplace will increase competition and outcomes.”
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