Public sector recruiter The Capita Group Plc (Capita) has agreed a contract with The Pensions Regulator to support its direct communications with employers for automatic enrolment of staff into workplace pension schemes, which will be phased in from October 2012.

The seven-year contract, beginning in October, has an option for the regulator to extend it for a further three years and is worth around £105m.

Chief executive of The Pensions Regulator, Bill Galvin, says: “Helping more than 1m employers to get ready for automatic enrolment over the next five years is a major challenge. We will provide high-quality information to every employer in the country, making it as simple as possible to comply.

“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 – as well as supporting them by dealing with their calls and questions – while continuing to focus on our role regulating the pensions industry.”