Pensions Crisis Update

Civil Service Pensions Crisis Update

I still have to advise members that despite the heaviest of criticism by MP’s at a Parliamentary Select Committee on July 8 and in the media for their handling of the civil service pensions crisis, Capita are still a long way from resolving the backlog of cases resulting from their mishandling of the contract to manage civil service pensions.

As a result, thousands of staff remain without pension quotes, unable to retire and many with severe financial difficulties.

As has been the case for some time now PCS continue to meet weekly with representatives of the Cabinet Office, In the meeting held on Friday 24 July. PCS National Officials met with the newly appointed Director of Civil Service Pensions Richard Vianello. 

He reported that progress had been made in stablishing a quality assurance process to satisfy the Cabinet Office that system fixes are in place and adhered to. 

PCS welcomed the commitment that Capita will now prioritise and respond to cases escalated through the union. Whilst not a huge gain this does show that union members will be prioritised.

However, the latest pensions taskforce update issued on 23 July indicates slow progress in clearing the huge backlog of cases:

• 9,463 outstanding retirement quotes as of 20 July (7,194 requested prior to 5 June)

• 4,750 outstanding bereavement cases of which 1,461 are more than four months old

Many PCS members still unable to retire

I take no pleasure in saying that Capita (now labelled ‘Crapita’ by many in the media), continues to fail those members retiring now and already retired but also those wishing to retire. Increasing numbers of PCS members have contacted the union to say they have been forced to continue working, which has had a life-changing impact on themselves and their families. They have made this decision as they have lost confidence in the ability of Capita to pay their pension payments on time.

The union will request specific information from the Cabinet Office on the numbers of staff left in this desperate position. Angela MacDonald formerly brought in to fix this chaos - now retired herself) almost predicted this that this would be the case, with members losing confidence – this is of course in one way another issue for the Civil service having employees in work who would prefer to be retired.

I am asking branch representatives to notify Pensions@pcs.org.uk if you become aware of members forced to continue working because of the breakdown in service by Capita, so we can exert further pressure to resolve this unacceptable situation. 

Advice for PCS members

Escalate any Pension issues as before.

• If members are retiring more than ever, they need to Join PCS ARMS. PCS members can continue to be represented if they experience problems after retirement related to the pensions crisis by joining our Associate and Retired Members section (ARMS). Details about joining can be found here. 

• Write to your MP. Demand an end to the pensions crisis and insourcing of pensions administration by completing this e-action.

• Sign the Megaphone petition (over 11,000 signatures already!) 

• Demand the Synergy contract is returned in house and not awarded to any private company let alone Capita.

• Branches have been asked to contact pensions@pcs.org.uk if they are aware of members forced to continue working because of the pensions crisis.

Campaign for insourcing continues

The PCS campaign to demand insourcing of pensions delivery continues. In a highly critical update to parliament (July 1) Nick Thomas-Symonds, Paymaster General said he would insource pensions administration now if he could. The pensions contract was described as a “prime candidate for insourcing”. The administration of our pensions is better off in public rather than private hands. I will ensure that the government is held to the commitment for the wave of insourcing they have promised. I am writing to the newly appointed Paymaster General and also to the DWP Minister about the Synergy contract.

PCS will continue to work with our Parliamentary Group to hold Capita to account for any further mismanagement or broken promises about the recovery process. 

PCS will not sit on our hands until this Pensions chaos is resolved for members, and that both the pensions contract and the Synergy contracts are brought back into the public sector, where they are safe.

e-Action: Civil Service Pensions Crisis

Ask your MP for urgent action on Capita Civil Service Pension Administration. Click here for more information on how you can help.

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