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Business & education services

Serco Group picks up final salary pension admin contract in US

Contract is worth up to US$200mln and might run for five years

Serco Group PLC (LON:SRP) is to provide support services to the US Pension Benefit Guaranty Corporation (PBGC) in a contract worth up to US$200mln over five years.

The first task order has already been issued with a five-year value of up to US$112mln.

READ: Serco Group adds £560mln Aussie defence contract to workload

Serco will help PBGC field offices to manage documents and records, operate contact centres and find members of pension schemes.

PBGC is a federal agency that protects the retirement incomes of nearly 37mln US workers in private sector defined benefit pension plans and is currently responsible for the benefits of about 1.5 million people in failed pension plans.

It is funded by insurance premiums, investment income and assets and recoveries from failed employer plans.

Rupert Soames, Serco’s chief executive, said the contract strengthens its US Citizen Services capabilities.

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