The Pensions Regulator has awarded Capita a £105 million seven-year contract to deliver "employer education" for automatic pension enrolment.

Employers have to phase in automatic enrolment of staff into workplace pension schemes between October 2012 and September 2016, depending on company size. The seven-year contract awarded has a further three-year extension option and will commence next month.

The Pensions Regulator will communicate with over 1 million employers as part of its role to maximise compliance with automatic enrolment. Under the outsourcing deal Capita said it will take responsibility for "delivering high volume employer communications" and "transactional processes in relation to the new requirements".

Its role will include distributing campaign messages to employers, intermediaries and advisers; notifying employers 12 and 3 months ahead of their automatic enrolment duty dates; managing employers' registrations with the regulator; the provision of a contact centre; and compliance enforcement activities, including the issuing of fines.

Chief executive of the Pensions Regulator Bill Galvin said: "Working with Capita will enable us to make a rapid transition to providing information to tens of thousands of small and micro businesses each month, whilst continuing to focus on our role in regulating the pensions industry."

Capita’s India-based rival TCS was awarded a bigger contract last year in relation to UK pensions reform, when it took on administration for the National Employment Savings Trust (NEST), in a deal worth £600m over ten years.

Capita recently acquired UK-based call centre providers Ventura and Vertex, which will help it meet the demands of this latest contract.

John O'Brien, an analyst at TechMarketView, said: "Capita’s capability in campaign and message distribution should have been enhanced by its recent acquisition of managed print services provider Right Document Solutions.

"Communications and marketing is becoming an increasing area of interest for Capita and rivals like Xerox, Serco and HP, as both public and private sector customers look to extract cost and drive efficiencies out of these business processes."