PCS demands compensation for late pension payments

At our meeting with the Cabinet Office on Friday (20), a significant increase in payments made by Capita was reported, but the scale of the backlog means it will be many months before the position returns to anything approaching normal.

An explanation has been given for the partial payment received as a first payment by those retiring in December and January: while lump sum payments can be made in full, first monthly payments are advances up to a limit of 70%. This enables quicker payment without having to first complete the addition to payroll and apply tax codes. Transition loans will not become repayable until the process is complete.

During the chaos which followed the transition from MyCSP to Capita, many of the most affected members of the Civil Service Pension Scheme contacting PCS have rightly raised the issue of compensation. We now know that overdue pension and lump sum payments will have interest added at Bank of England base rate (currently 3.75%) plus 1%.  This will achieve a measure of restitution but doesn’t reflect the suffering caused, with many pensioners deprived of their main source of income having been unable to cover household costs. Although the tariff may not be generous, the Pension Ombudsman does have the power to direct the scheme to compensate for maladministration. PCS will continue to press for the best available redress for scheme members in our talks with the Cabinet Office.

The PCS campaign, working closely with our parliamentary group of MPs and our retired members in PCS ARMs, continues to build, with a particular emphasis on identifying the causes of the service failure and the record of failure associated with privatisation. This work will enable us to participate fully in the panned government review.

 If you haven’t already, use our e-action to contact your MP about the pensions crisis.