The latest update from Angela MacDonald, Second Permanent Secretary at HMRC, outlines progress in the Civil Service Pensions recovery programme, with thousands of outstanding retirement quotation and payment cases now being processed. However, while improvements are being reported, many members continue to experience significant delays and uncertainty.
Quotation Backlog Reducing
Capita has now issued more than 15,380 retirement quotations and expects to reduce the remaining backlog to around 4,000 cases by the beginning of next week.
Attention is now turning to the remaining cases, many of which are more complex. Around 1,500 cases have been identified as requiring additional work, and affected members will be contacted directly. In some instances, members will be offered calls to discuss outstanding issues and explain any further steps needed before benefits can be paid.
Members are reminded that quotation packs are being sent by second-class post and may take several days to arrive.
Pension Payments and Arrears
Capita reports that where all completed paperwork has been received, payments are now being processed within 15 days. From July onwards, the target is for completed retirement claims to be processed within 10 to 15 working days.
Members should receive:
- A finalisation letter by post.
- Any lump sum payment within 7 to 10 days of the finalisation letter.
- Ongoing pension payments one month after retirement.
The update also notes that pension arrears may be paid before the accompanying paperwork arrives. Members receiving arrears payments are advised to wait for their finalisation letter before raising any queries.
For those receiving substantial arrears payments, HMRC guidance has been provided regarding potential tax implications, including situations where delayed payments may affect tax bands.
The Cabinet Office plans to introduce a new process next week allowing members who returned their paperwork more than four weeks ago to raise queries directly, helping identify cases that may have stalled in the system.
Returning Documentation
Members can continue to return forms by post or through the secure member portal. Capita has clarified that uploaded files must not exceed 10MB. Documents submitted successfully through the portal will generate an acknowledgement and reference number.
Additional identity checks may also be required in some cases as part of enhanced fraud prevention measures.
Bereavement Cases Remain a Major Concern
The update reveals there are currently around 3,700 bereavement cases where Capita is awaiting information from families before payments can proceed. While follow-up activity has taken place and work is ongoing to improve communications around issues such as probate, these cases remain a significant area of concern.
For many members, especially those waiting for retirement payments, bereavement cases and long-standing unresolved issues, the impact continues. We remain particularly concerned about the number of outstanding bereavement cases and the distress this is causing families who are waiting for pension benefits to be resolved.
Additionally approximately 4,500 cases are awaiting processing by Capita, including data triage cases. The Cabinet Office says these are being tracked closely, with the objective of clearing this backlog by the end of July.
Other Outstanding Areas
The recovery programme continues to work through:
- Death in Service cases.
- Ill Health Retirement cases.
- Transfer-in and transfer-out requests.
- Divorce-related pension calculations.
Approximately 4,000 members affected by the temporary pause in transfer value calculations will be contacted from 6 July with updates on their cases. The Cabinet Office has stated that policy measures will be considered to ensure members do not lose out because of these delays.
Looking Ahead
Capita has committed to processing new retirement cases within four months, and members requesting quotations for retirement dates up to four months ahead are expected to receive their benefits on time.
The Cabinet Office is also reviewing the overall position at the end of June to assess the effectiveness of recovery measures and determine any commercial actions required.
Angela MacDonald has now handed over responsibility for future updates to Richard Vianello, who joined the Cabinet Office as Pensions Director on 29 June. Weekly updates will continue before returning to a fortnightly cycle.
CSPA’s Position
While it is encouraging to see modest progress being made in reducing some of the backlogs, many members are still facing unacceptable delays and uncertainty. The experiences described by members over recent months demonstrate that there remains considerable work to do before confidence in the service can be restored.
CSPA continues to support members affected by these issues and is raising individual cases and wider concerns directly with the Cabinet Office through regular meetings. We will continue to highlight where progress is needed and push for members to receive the service and support they are entitled to.
You can read the Civil Service Pensions Taskforce Update #11 on the below link
https://www.civilservicepensionscheme.org.uk/memberhub/kbarticle/?id=KA-01372
