Betrayed by outsourcing
Abject failures of outsourcing firms Capita and MyCSP leave civil service pension scheme members in hardship and distress
The betrayal of thousands of members of the civil service pension scheme (CSPS) – who have been left in financial peril and emotional distress due to missed and late pension payments and lump sums – has publicly laid bare the abject and avoidable failure of outsourcing vital services.
The recent fiasco erupted soon after outsourcing giant Capita took over the running of the scheme
in December, piling unsustainable pressure onto failures that had been rumbling for years under the previous administrator MyCSP.
PCS had warned that Capita was ill-prepared for the switch and called for the service to be brought
in-house. By February they admitted to being overwhelmed.
We have been hearing heartrending stories from members left without income, nor any knowledge
of when and how much they will be paid. Many have been unable to pay mortgages, rent and bills, have incurred bank charges and late-payment fees, and been forced to borrow money. Bereaved
spouses have been waiting months for survivor pensions. Others are delaying retirement plans as they fear being left without money. MPs we’re working with say they have also been inundated with pleas for help. Many have taken action to raise the issue and the public administration and constitutional affairs committee has been examining the crisis. We’re urging members to sign our e-action.
The unprecedented breakdown in service will take months to clear.
Our members working in Capita are telling us the system is unfit for purpose, with a heavy reliance on manual workarounds still needed.
General secretary Fran Heathcote said the fiasco has been “extremely distressing” for members and called for an end to failed outsourcing.
PCS is in weekly negotiations with the Cabinet Office. Among the union’s actions has been a consistent call for compensation, which succeeded in March when the Cabinet Office said those who have experienced unacceptable delays are eligible for compensation for distress and inconvenience.
They had earlier agreed to pay interest on late payments, offer interest-free loans to plug gaps, and fund the deployment of 150 extra staff to help clear the backlog.
In a new move that defies belief, Capita has now been awarded a £1bn contract to handle payroll for some 250,000 civil servants.