UK - Logica UK, the technology and IT giant, has pulled out of the bidding process for a contract to run the UK's personal accounts pensions administration system from 2012, leaving just two bidders left in the race.
A statement from the Personal Accounts Delivery Authority confirmed Tata Consultancy Services and the Great West consortium - made up of Great-West Retirement Services, Great-West Life and Annuity Insurance and Canada Life Group - are still bidding to manage the IT contract which will run the personal accounts regime.
However, Logica is the latest company to pull out after ATP, the Danish pensions and administration giant, said it could no longer carry on with its bid.
A spokesman for Logica said the reasons for its withdrawal were confidential, but added: "Following an extensive review, Logica and IFDS have taken the decision to withdraw from the PADA procurement process. Logica and IFDS have enjoyed a highly productive competitive dialogue and withdraw from the bid on very good terms with PADA. Logica and IFDS wish PADA every success in its ongoing bid process."
ATP pulled out of its bid in September, arguing it was unhappy with the risk/return balance of potential new business as well as with the number of likely participants. (See earlier IPE story: ATP pulls out of bid to win personal accounts contract)
Chresten Dengsøe, ATP's chief actuarial officer, at the time said: "The main reason for the withdrawal was commercial. We viewed this as an investment for ATP, so we were looking at the risk and the return. It seems that the risk was too high compared with the return. It was about how we should share this risk between the authority and the provider."
PADA - which was set up to create personal accounts before handing over to a trustee body - said its competitive dialogue with the remaining two candidates is "proceeding well".
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