Civil service pensions crisis: calls grow for inquiry as pressure mounts on Capita

Conference delegates also called for a public inquiry into what has been described as an unprecedented collapse in service for pension scheme members.

Demonstration targets Capita AGM

Ahead of last weeke's conference, PCS members, supported by ARMs colleagues and London regional TUC activists, staged a demonstration outside Capita’s annual general meeting.

More than 60 demonstrators took part, and the protest was addressed by chair of our parliamentary group John McDonnell MP, leaving an impression on Capita shareholders.

Fresh scrutiny of Capita’s government role

John McDonnell said MPs had been pressing the government over Capita’s record, questioning why the company continues to receive public contracts while the pensions crisis remains unresolved.

The parliamentary public accounts committee and the public administration and constitutional affairs committees are due to hold a further joint evidence session on 7 July.

PCS General Secretary Fran Heathcote will write to both committee chairs with an update on the latest position. We will continue working with our parliamentary group to monitor recovery progress and whether Capita meets the ministerial target of reaching contractual service levels by the end of June.

Recovery plan shows some progress but backlog remains

A further meeting has taken place with the Cabinet Office, with Angela MacDonald, second permanent secretary at HMRC and lead for the recovery team, updating unions on progress.

Around 2,000 pensions have been put into payment in the past two weeks, and unions have been told that members who already received lump sums should be allocated to an automated payroll cycle by the end of May.

Annual benefit statement information is now live on the member portal.

Over the last fortnight, around 3,000 pension quotes have been issued. Capita says it aims to maintain that output to clear the quotes backlog by the end of June, although finalising cases will still take additional time once quotes are returned.

New retirement applications are continuing at a rate of around 1,000 a week, underlining the scale of the challenge still facing the recovery effort.

A joint effort is also under way to identify any pre-transition applicants whose pensions are still not in payment despite previous commitments. Branches are asked to report unresolved cases to PCS via [email protected] 

The latest Recovery Taskforce update includes approximate figures on progress and more detailed information for members who have received their pension quote.

Compensation process likely to affect thousands

The Cabinet Office is handling complaints within the framework set by the Pensions Ombudsman, using the formal maladministration process.

It is expected that thousands of scheme members affected by the service breakdown will submit complaints.

Once a complaint has been logged with Capita, members can pursue the Internal Dispute Resolution process, including claims covering distress, inconvenience and any penalties or charges incurred.

If necessary, cases can be escalated through a second stage, with additional resources expected to be made available to deal with the volume of complaints.

Legal advice

We are seeking legal advice from our solicitors on whether there is an enforceable basis for compensation claims and we will provide a further update.