UK – In-house pensions administration staff at a UK arm of German utility RWE have been offered voluntary redundancy amid an outsourcing deal with Capita Hartshead (updates with number of staff).

A spokeswoman at RWE’s Thames Water said they would not be absorbed by Capita. “The team were offered alternative positions within Thames Water or voluntary redundancy. A total of seven people took redundancy."

RWE took advice on the decision from Watson Wyatt, she added.

Capita has been appointed scheme administrator for Thames Water's defined benefit arrangements covering over 13,000 members for six years. Financial terms of the deal were not disclosed. The schemes will be administered from Capita’s Sheffield office.

The RWE spokeswoman stated: “It was felt that the current in-house computer systems and tools could not be technically supported in the future and could not be adapted to meet future pension legislative systems.”

Capita Hartshead managing director Mike Addenbrooke said: "We are thrilled to have secured this significant contract with RWE Thames Water and look forward to continuing our tradition of building successful long term partnerships with all our clients, including major UK Water PLCs.”

Joy Moore, head of pensions at RWE npower and RWE Thames Water added: “Both the company and trustees are looking forward to working closely with Capita and introducing a modern, first class administration and payroll service for the members of the pension schemes.

In February IPE reported that jobs at supermarket chain Safeway’s roughly 20-strong pensions team were set to go as the company transferred administration to Capita Hartshead.

Earlier this month RWE said it has set up a deferred pay company pension scheme for its employees.