The deal with Capita brings a step-change in the service provided to CIS customers backed by major investment in our Life & Savings operations, including the Life & Savings back office, customer contact area and support processes. This further improvement in customer service will lead to better retention and referral rates in the future.

Over the course of the contract, the proposal will enable Capita to deliver a contemporary set of products over an agreed timeframe. The first major delivery will be a new range of protection products targeted for early 2009.

As part of the transfer, over 800 CFS colleagues will transfer employment to Capita under TUPE legislation with effect from Monday 19 November 2007. In line with CFS's 'Agreed Principles for Outsourcing', the proposals for this transfer, and the terms and conditions with the new partner, have been the subject of a full consultation process with the Trades Unions.

Following the transfer, those staff who fall under the TUPE arrangements will have the benefits of excellent opportunities for career progression as Capita develop a Life & Pensions Centre of Excellence in Manchester city centre.

David Anderson, Chief Executive Co-operative Financial Services, said, "This partnership with Capita will ensure that we are well placed to achieve our future goals and at the same time provide our staff with increased opportunity for future development within a number of different sectors. Over the last three years, the change programme undertaken within CIS has delivered significant customer and business benefits ahead of schedule. This is yet another way of transforming the way in which we do business and ensuring that our customer service continues to be world class."

Paul Pindar, Chief Executive of The Capita Group commented, "This partnership will draw upon Capita's expertise across both the life & pensions and unit trust administration markets through both Capita Life & Pensions and Capita Financial Group. An integrated operating infrastructure will deliver cost and quality benefits alongside enhanced customer service and provide a flexible platform for CIS's current and new business. The work will be delivered from a central Manchester base and builds on Capita's commitment to North West England. We look forward to welcoming all staff who transfer to Capita."