MyCSP, the first central Government mutual which last month won the contract to administer the Civil Service Pension Scheme, has secured 15 new contracts.
MyCSP Ltd’s innovative Mutual Joint Venture model gives employees a 25 per cent 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 per cent stake, and the Government has retained a 35 per cent stake so taxpayers benefit as the business grows in value.
The new business includes 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 and Residential Property Tribunal.
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.”
MyCSP Ltd has 500 Employee Partners in offices in Cheadle Hulme, Liverpool, Newcastle, Worthing, Basingstoke and Leeds. The 25 per cent employee stake is managed by the MyCSP Employee Partnership Trust. 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 per cent 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.
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.