Capita and Cabinet Office Chiefs Unveil Plan to Address Pension Crisis
Capita and the Cabinet Office have taken significant steps to address the ongoing pension crisis affecting Civil Service Pension Scheme members. Company CEO Adolfo Hernandez and Cabinet Office Permanent Secretary Cat Little recently issued a public apology for the “serious issues” that have led to payment delays and financial distress for numerous civil servants.
Apology and Acknowledgment of Issues
In their statement, Hernandez and Little recognized the impact of the situation on members, especially those dealing with bereavement or health challenges. They emphasized their commitment to resolving these issues and restoring proper services.
Background of the Pension Crisis
When Capita took over the administration of the Civil Service Pension Scheme on December 1, they inherited a backlog of 86,000 cases. This was significantly higher than the 37,000 cases reported by the previous provider, MyCSP, which had declared that all outstanding items were disclosed prior to the transition. The transfer resulted in increased call volumes and complex queries, exacerbating existing problems.
Emergency Measures Implemented
A specialized team led by HMRC’s second permanent secretary, Angela MacDonald, is overseeing an urgent recovery plan. Key actions include:
- Prioritizing Urgent Cases: Focus on bereavements, ill-health retirements, and hardship situations.
- Increasing Staffing: Deploying over 150 additional personnel, boosting the total workforce to more than 650.
- Support for Those in Hardship: The Cabinet Office is collaborating with various departments to establish interim support for affected individuals.
Capita aims to restore service levels for urgent cases by the end of February, though a specific timeline for resolving all priority cases remains unclear. The introduction of interim support measures is also part of their commitment to assist those experiencing financial difficulties.
Union Response and Future Actions
Unions have pressed for immediate solutions, highlighting reports from civil servants facing prolonged waits for pension payments. Demands include increased resources to clear the backlog and financial compensation for affected individuals. There is also a call to pause voluntary exit schemes until the backlogs are adequately addressed.
Little reaffirmed in a staff email that measures to prioritize voluntary exit scheme quotations are being developed, despite the likelihood of ongoing delays during the recovery process. Employees facing difficulties accessing the system are assured that their data is being managed by Capita.
Next Steps
Capita is launching a separate initiative to handle the issues stemming from the McCloud ruling, which affects approximately 74,000 pensioners and 21,000 deferred members. For immediate assistance, former civil servants are directed to contact their past departments or Capita based on their retirement timeline.
The situation remains dynamic, with stakeholders closely monitoring the recovery plan to ensure timely and effective resolutions to the ongoing pension crisis.
