UK – Citigroup has been awarded a £500,000 (€720,000) contract by the Department for Work and Pensions to pay the pensions of almost one million overseas UK pensioners.
While Citigroup and the DWP could not confirm the amount, IPE sources close to Citigroup reported it amounted to £500,000. Citigroup has replaced Halifax Bank of Scotland.
No adviser was involved in the open tendering and selection process. The contract was announced in January, and will run from 1 October 2006 until 30 September 2014.
According to a Citigroup spokesperson, the contract will run for an initial eight-year period with the option to extend this for an additional two years.
“We are taking the responsibility for making regular electronic payments to almost one million overseas pensioners and benefit recipients in 200 countries,” Citigroup told IPE.
IPE understands that while the contract is relatively small, it is regarded as prestigious. “Where the DWP goes, others follow,” said a source close to the arrangement.
According to DWP statistics, roughly 8.4% of UK pensioners are based outside the country.