India’s Tata Consultancy Services preferred bidder to build auto enrolment pension system

The Department of Social Protection has confirmed the selection of Indian information technology company Tata Consultancy Services (TCS) as its preferred partner to build and run the system for its landmark auto-enrolment (AE) pension scheme.

The 10-year contract is valued at up to €150 million.

The confirmation came as the Automatic Enrolment Retirement Savings System Bill 2024, allowing for the setting up scheme, was passed its final stage through the Oireachtas on Wednesday evening and will now be sent to the President to be enacted.

“Tata Consultancy Services (TCS), a leading global IT services, consulting, and business solutions organisation, has been selected as the preferred bidder to provide this administration as a managed service,” the department said.

TCS set up and runs a UK auto-enrolment system established more than a decade ago. Founded in 1968, the company has had operations in Ireland for more than two decades and in 2020 opened a so-called global delivery centre in Letterkenny.

The passing of the legislation and appointment of TCS are major milestones as the Govenrment races to meet its target of having the scheme up and running at the start of next year, after years of starts and stops — even if there is growing doubt that the deadline will actually be met.

However, a State agency that will oversee AE has yet to be set up and the department still has not begun the formal search for asset management firms to manage the underlying investments.

The target of having AE, which was first proposed in 2006 by then Fianna Fáil minister for social and family affairs Séamus Brennan, up and running by the start of next year is viewed with a high degree of scepticism by pensions industry participants and businesses. It is expected that about 750,000 workers without occupational or private pension plans will be captured by the plan.