CO0344 Essex Payroll and Pensions Administration Service

Essex County Council invites tenders for provision of its Payroll and Pension Administration Service. The current internal payroll service makes payments to around 8,300 employees per month including managing pension contributions and statutory reporting. It also manages elements of the system administration and maintains certain key data around system approvers and the hierarchy.

The service will be for in initial 3-year term, with an option to extend for up to a further 2 years, with services commencing in August 2024. The aim of the procurement is to outsource the following key activities of the current service, which include but are not limited to:
• processing monthly payroll including payment, costing, statutory deductions, and reporting, third party payments and reconciliation for circa 8,300 – 9,000 directly employed Council staff.
• implementing pay changes because of Essex Pay.
• managing the payment of allowances to circa 75 members and other office holders per month
• administering pension contributions and other pension scheme administration for Council staff only
• undertaking pensions statutory reporting and record corrections for Council staff and maintained schools’ employees.
• system administration tasks on the current Council IT system including and managing system upgrades.
• managing the organisation structure within the system
• updating changes to the workforce including starters, leavers, and changes
• managing absence including leave, sickness, and statutory leave
• correcting errors such as over and underpayments
• payroll information for the Council’s in-year forecasting of its financial position and in developing future years’ budget models
• undertaking financial end of year activity
• managing employee queries relating to the above and all other activities required to deliver the requirements set out in the Council’s Service Specification for this requirement.

The current payroll runs monthly for payment in advance on 23rd of each month for the whole month or the closest working day prior – this is required to be continued in the outsourced service. In scope services and out of scope services are set out within the detailed Service Specification published for this tender. We are seeking a Contractor that can and must operate within our existing systems and set up by accessing our current platform to manage the on-going payroll and pension activity including elements of system administration.

The Council has considered this procurement in relation to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (the Regulations). The Council’s view is that those Regulations apply to the transfer of activity envisaged by the proposed award of a contract for these services. Application of the Regulations is a matter of law and Bidders are therefore advised to seek their own independent legal advice on whether or not the Regulations apply.