Watchdog sticks probe into Capita’s handling of 1.7 million member civil service pension scheme

Parliament’s Public Accounts Committee (PAC) has opened an inquiry into Capita’s administration of the Civil Service Pension Scheme after thousands of retired public sector workers reportedly struggled to receive their pensions. The committee says Capita repeatedly made and broke promises to resolve problems following its takeover, while the National Audit Office is also investigating.

The scheme serves 1.7 million people under a ten-year contract worth £239 million, transferred from MyCSP in December. Capita said it inherited 132,100 complex cases, compared with a previous backlog of 37,000, and missed deadlines to resolve the problems; the government withheld a £10 million payment. The PAC inquiry will examine the scheme’s condition at launch, Capita’s performance, the impact on members and the Cabinet Office’s oversight.