The UK Government has signed an ITO contract worth £600m with Tata Consultancy Services (TCS) to manage a state-sponsored pension scheme which is still being formulated, it was reported.

The UK's Personal Accounts Delivery Authority has confirmed that TCS is a successful bidder for a ten-year arrangement to set up and administer the National Employment Savings Trust, a scheme to be launched by 2012.

The Personal Accounts Delivery Authority said in a statement: “The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer the National Employment Savings Trust.”