Civil Service Pension Scheme Transfer Faces ‘Unacceptable’ Six-Week Delay
The administration of the Civil Service Pension Scheme (CSPS) transitioned back to Capita on December 1, 2023, after a decade with MyCSP. The change follows ongoing performance issues that have plagued the scheme, which could be felt immediately with the transfer to Capita. Despite claims of resolved “teething problems,” numerous issues have persisted since the transition.
Six-Week Delay in the Pension Scheme Transfer
Capita’s initial updates made on December 4 suggested that the new website and portal issues had been addressed. However, users have continued to report significant problems, such as:
- Difficulties logging into the new system
- Missing personal data
- Challenges reaching customer service
- Late payments
These difficulties resemble those experienced when MyCSP first took over the administration from Capita in 2014. Six weeks post-transition, concerns have been voiced by civil service unions and the Civil Service Pensioners’ Alliance. Major unions have described the situation as “unacceptable.”
Concerns from Unions and Members
FDA assistant general secretary Adrian Prandle highlighted an influx of queries from members, particularly those who are retiring. Prandle emphasized that many members lack clarity regarding their pension payments. He characterized the situation as dire, especially for those approaching or having just completed retirement.
Steve Thomas, deputy general secretary of the Prospect union, reported “unprecedented numbers of unacceptable delays” in pension payments. He detailed cases where members struggle financially, often waiting for months without income from the scheme.
Additionally, the PCS union noted significant challenges arising from the transition, including registration hurdles and discrepancies in member data. They reported a backlog of 86,000 cases due to system errors and bugs, which they discussed with the Cabinet Office on December 10.
The Transition Challenges
The Civil Service Pensioners’ Alliance noted that the transfer involving over 1.7 million members was always expected to present challenges. General secretary Sally Tsoukaris remarked on the volume of calls and emails from distressed members following the transfer.
Capita stated that their current backlog was more than double what was anticipated when they took over. They are now working with around 500 full-time staff, a 50% increase from the previous provider, to manage operations effectively.
What’s Being Done to Resolve the Issues?
In response to the ongoing issues, Capita reported that over £600 million in payments had been made since the beginning of December. Meanwhile, unions are demanding regular updates from the Cabinet Office regarding progress on resolving these lengthy delays.
Both Prospect and PCS have asserted the need for increased resources to address the outstanding backlog effectively. PCS, in particular, called for the immediate cessation of voluntary exit schemes until the issues have been resolved.
Overall, as discussions continue between unions and the Cabinet Office, pressure remains on Capita to ensure timely and accurate delivery of services. The goal is clear: to provide civil servants with the reliable pension services they deserve.
