Capita Takes Over Civil Service Pension Scheme Administration: What You Need to Know

The Cabinet Office has given the green light for outsourcing giant Capita to assume control of the Civil Service Pension Scheme (CSPS), despite earlier concerns regarding its readiness. This transition, set for December 1, 2023, marks a significant shift in the management of a scheme that serves 1.7 million members.

Capita’s £239 Million Contract

In November 2023, Capita was awarded a lucrative £239 million contract to take over from the current administrator, MyCSP. Preparations for this changeover have been underway for several months, aimed at ensuring a seamless transition over the next decade.

Concerns Raised About Transition Readiness

However, back in July, Cat Little, the permanent secretary of the Cabinet Office, expressed concerns during a session with the Public Accounts Committee. She highlighted that Capita had not met several critical “transition milestones,” raising alarms about the project’s timeline. These concerns were validated by a report from the National Audit Office (NAO) which indicated that Capita had missed three of these milestones, resulting in the Cabinet Office withholding £9.6 million in transition payments.

Despite these setbacks, Capita remained confident about its preparedness, claiming to have completed its necessary milestones.

A Reassuring Update from the Cabinet Office

Recently, the Cabinet Office confirmed that Capita had adequately addressed the previous concerns and is now on track for the December transition. A spokesperson expressed confidence that the program remains aligned with the planned timeline, stating:

“As with any major programme, we will continue to regularly assess business readiness during the transition and work closely with both MyCSP and Capita to keep member and employer impact during the transfer to a minimum.”

Important Changes for CSPS Members

CSPS members should be aware that the transition may cause temporary outages in online services, as their account details will be migrated to Capita’s new platform. It is anticipated that members will need to re-register to access online services, with a full rollout of Capita’s offerings expected by March 2026.

Union Concerns Over the Transition

The Civil Service’s major union, the Public and Commercial Services Union (PCS), has openly expressed its apprehensions regarding the shift from MyCSP to Capita. They have urged the Cabinet Office to reconsider and bring scheme administration back in-house, citing potential risks associated with outsourcing.

Adrian Prandle, assistant general secretary at the FDA, the union representing senior civil servants, emphasized the importance of ensuring a smooth transition:

“It’s essential that the transfer goes smoothly, that any temporary disruption is minimized, and there is a marked improvement in service delivery.”

Challenges in Current Administration

The ongoing issues with MyCSP’s administration have included delays in retirement quotes and payments, as well as long wait times for customer inquiries. PCS General Secretary Fran Heathcote articulated that the increase in retirements and backlogs made this a particularly challenging time to change administrators. She stated:

“This transition is only necessary in the first place because of the now discredited policy of outsourcing. We reiterate our call for this work to be brought back in house to provide for proper governance and a decent public service.”

Capita’s Commitment to CSPS Members

In a statement, Capita has affirmed its commitment to a secure and efficient transition, focusing on providing enhancements to the service. The company claims it will introduce digital tools that will give members better visibility and control over their pension journeys.

Looking Ahead: Innovation and Improvements

Capita aims to leverage automation and artificial intelligence to improve service efficiency and accuracy over time, tailoring its offerings based on user feedback and independent assessments. The company has expressed pride in having been chosen to support over 1.5 million current and former public servants in the UK.

As the transition date approaches, both members and union representatives will be keeping a close watch to ensure that the necessary steps are taken to protect the interests of CSPS members during this crucial transition.

Conclusion

The transition from MyCSP to Capita presents numerous opportunities and challenges. As preparations continue, it’s essential for all stakeholders—members, unions, and the Cabinet Office—to stay informed and engaged with the process to ensure a smooth and effective handover.

For CSPS members, staying updated on these developments can make a significant difference in how they manage their pension resources moving forward.