Running the government NPSS
Paymaster is thought to be a contender to manage the government's National Pension Savings Scheme (NPSS), according to reports.
The privatised arm of the Paymaster General's Office already administers the payment of one in every eight UK pensions, including those of the NHS and the Armed Forces.
The company claims it can keep administrative costs low enough to bring the annual charge for a national saving scheme down to 0.3 per cent, including fund management, within seven years of running.
A report by Lord Turner's Pensions Commission proposed the creation of a NPSS last November to encourage people without occupational or private retirement plans to save.
Under the proposed scheme, employees would automatically be enrolled if they are not already in a sufficiently-backed company scheme but they would have the right to opt out.
Employees would contribute four per cent of their salary, employers three per cent and the government one per cent.
Lord Turner, commission chairman suggested basic annual management charge on NPSS account should be about 0.3 per cent of savings.
The Department for Work and Pensions is expected to issue a White Paper in response to the Pensions Commission report later this month.
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