The Indian IT company, Tata Consultancy Services (TCS), has been selected by the Department of Social Protection as the preferred partner for creating and operating the forthcoming automatic enrolment (AE) pension scheme. This partnership is based upon a 10-year contract valued up to €150 million. The selection of TCS was approved after the Automatic Enrolment Retirement Savings System Bill 2024 got the green light in the Oireachtas on Wednesday evening. Following this, it will be presented to the President for official enactment.
TCS, a standout firm in global IT services, consulting, and business solutions, has been the front runner to carry out the AE scheme as a managed service. The company, established in 1968, has been functioning in Ireland for more than 20 years and launched a global delivery centre in Letterkenny in 2020. TCS also has experience in establishing a UK auto-enrolment system over a decade ago.
While marking the bill adoption and TCS appointment as principal milestones, the Government is pushing forth to start the AE scheme next year. However, there are increasing doubts over meeting this deadline due to ongoing delays. Furthermore, an official agency to supervise AE and the search for asset management firms to handle underlying investments have yet to commence.
The AE initiative first proposed in 2006 and intended for a launch next year is viewed sceptically by the pensions industry and businesses. This implementation is meant to cater to approximately 750,000 employees currently without occupational or private pension plans.