Update on Civil Service Pensions administration chaos

PCS members working in Capita on the Civil Service Pension Scheme have reported major system shortcomings and an acute shortage of staff. While some ‘surge and rapid response’ staff are being deployed, pensions administration requires weeks of training, limiting the immediate benefit of this deployment.

For months PCS had warned the Cabinet Office that we didn’t believe Capita was ready to take over, and we recommended bringing the physical administration of the scheme back in-house.

Impact on members

Widespread hardship and financial distress is being caused by the loss of expected pension income. Recent and imminently retiring staff, ill-health retirees and bereavement cases are particularly urgent.

Unreasonable pressure is also being placed on the pensions administration staff working in Capita. It is estimated that there needs to be at least 100 more staff to respond to the backlog and new claims.

PCS position and demands

PCS has demanded immediate prioritisation of urgent cases, for voluntary exit schemes (VES) to be delayed in order to prioritise urgent pension cases, clarification of any “bridging loan” arrangements and for stronger accountability and improved resourcing.

Cabinet Office response

The Cabinet Office has refused to pause VES, saying it can recover the situation and deliver the VES schemes as planned.

PCS has cautiously welcomed ministerial confirmation that departments are being asked to set up hardship loan schemes. However this process itself will create more work for Capita.

A Cabinet Office working party has been created to investigate the situation and develop a recovery plan; but although this may offer limited early remedy, clearing the backlog is expected to take months.

Next steps and union actions

PCS will continue to meet weekly with the Cabinet Office, and the new working party.

PCS has briefed our parliamentary group, MPs are raising concerns and an MPs’ drop-in at Westminster is being arranged.

We have launched an e-action, asking members to write to their MP, calling on them to support our demands and to write to the Cabinet Office minister.

PCS will consider further escalation if the Cabinet Office does not implement immediate, effective prioritisation and resourcing measures.