15 June 2012
Just seven weeks after becoming the first mutual to spin
out of central Government, MyCSP Ltd has taken on 15 new
contracts, Chief Executive Phil Bartlett has announced
today. These will provide MyCSP Ltd with thousands of
pounds worth of business.
As a mutual, MyCSP Ltd's employees own a significant share
of the business which gives them board level representation
and a share in profits. A range of key public service
providers, including the House of Lords, Food Standards
Agency, and the Electoral Commission, have all chosen this
innovative new mutual to administer their pension schemes
effectively. This is in addition to MyCSP Ltd's existing
contract to administer the Civil Service Pension scheme for
1.5 million public sector workers.
In future, MyCSP Ltd will tender for more business in the
private and public sectors, including local authorities and
even public sector organisations in the European Union.
Francis Maude, Minister for the Cabinet Office, said:
This is a real vote of confidence for what a mutual, at the
cutting edge of public sector reform, can achieve. MyCSP
Ltd will halve pension administration costs, saving
taxpayers' money while improving the service. The
Government is supporting entrepreneurial front line public
sector staff to form mutuals and take control of the
services they provide.
Phil Bartlett, MyCSP Ltd Chief Executive, said:
It is fantastic news that public service providers are keen
to award us their business and are confident in the high
quality of services we provide. The flexibility we have as
a Mutual Joint Venture allows us to flourish in this way as
a business, while delivering tangible returns for the
employees who work for us. Our employees have a significant
stake in everything we do and I am delighted that they
stand to benefit from our recent successes.
Lord Hutton of Furness, Chairman of MyCSP Ltd, said:
This early success is a credit to our whole team who've
shown extraordinary commitment to making our business the
industry leader. We have a great deal of work to do but
today's announcement shows we're on the right track.
Personally, I'm very pleased that MyCSP Ltd will be
administering the House of Lords pension scheme as I know
my own pension will be in safe hands.
Notes to Editors
1. MyCSP Ltd's innovative Mutual Joint Venture model
gives employees a 25% ownership stake, representation at
board level and a share in profits. It ends the binary
choice between private and state provision. The Equiniti
Group's Paymaster business has a 40% stake, and the
Government has retained a 35% stake so taxpayers benefit as
the business grows in value.
2. MyCSP Ltd has been awarded 15 new contracts to
administer pensions for the House of Lords, Competition
Commission, Electoral Commission, Commission for Equality
and Human Rights, Food Standards Agency, Army Sports &
Control Board, Law Commissioners, Residential Property
Tribunal, East Midlands RDA, East England DA, North West
DA, South West RDA, Yorkshire Forward, Advantage West
Midlands, and ONE.
3. MyCSP Ltd was awarded the contract on 1 May 2012 to
administer the Principal Civil Service Pension Scheme for
seven years, with an option to extend for a further three
years, after which the contract will be retendered. MyCSP
Ltd has 500 Employee Partners in offices in Cheadle Hulme,
Liverpool, Newcastle, Worthing, Basingstoke and Leeds. The
25% employee stake is managed by the MyCSP Employee
Partnership Trust Chaired by Mark Lund. The Trust appoints
a Non-Executive Director onto the Board of Directors and
will pay employee partners a dividend from profits
annually. An Employee Partnership Council has been elected
through a ballot in which 76% of employees voted. The
Council is chaired by an elected member and has a seat on
the executive management board chaired by the CEO. The
Employee Partnership Council is also responsible for the
company's corporate social responsibility scheme called
1+1+1. It commits the company to: donating 1% of net
profits to charity; volunteering 1% of employee partners'
time to community projects; and reserving 1% of total
headcount for apprenticeships and interns. In addition, the
Chief Executive's salary will be capped at eight times the
organisation's average salary to ensure that there will be
no inflated pay-outs to management. The capital investment
provided by Paymaster will enable MyCSP Ltd to replace
outdated technology, leading to service improvements and
greater efficiency. For further information please see: MyCSP.co.uk.
4. Equiniti Group is a leading business services
provider delivering complex administration and payment
solutions to over 2,200 clients in the UK public and
private sectors. Operating through a number of specialist
brands, the Group provides a range of pension and HR
services and is the leader in the UK share registration
market. Paymaster, Equiniti Group's pension administration
business, is partnering with MyCSP and holds a 40% share
alongside employees and the Government in return for its
investment of people, cash, technology and expertise.
Paymaster has been making payments for 175 years, and today
pays over £13 billion per annum to pensioners, dependants
and annuitants in 180 countries worldwide. Equiniti Group
has over 3,000 employees in 23 office locations and
supports over 2,200 clients in both the public and private
sectors including around 50% of the FTSE.
5. MyCSP Ltd is a member of the Employee Ownership
Association which acts as the voice of co-owned business in
the UK - a network of over a hundred companies with
significant employee ownership and a sector of the economy
worth over £30 billion annually. The Association's role is
to serve its member companies and promote the growth of
employee ownership in the UK. Members include co-owned
Gripple, Childbase, John Lewis, Waitrose, Unipart and Arup,
plus a host of successful enterprises from many sectors of
the economy. For further information visit www.employeeownership.co.uk.
6. Over £1billion of health services are provided by
mutuals. Evidence suggests that employee ownership can
boost productivity by up to 19%. John Lewis, one of
Britain's best known mutuals, continually tops customer
satisfaction polls and has half the average staff turnover
and sickness absence of the retail sector. The Government
is supporting public servants who want to form mutuals with
a £10million Mutuals Support Programme, Mutuals Information
Service website htttp://mutuals.cabinetoffice.gov.uk
and hotline 0845 5390543.