Retired UK civil servants failed by pension outsourcing, government says
Summary
The UK government has admitted that outsourcing the civil service pension scheme to the private company Capita caused serious delays and problems, leaving some retirees without payments for up to a year. Due to poor service and financial hardship for pensioners and their families, the government is now planning to bring the scheme back under direct public control.Key Facts
- The civil service pension scheme was outsourced to Capita in December.
- Many pensioners faced long delays, some up to a year, before getting their payments.
- Around 17,000 relatives of deceased pensioners are also experiencing payment delays.
- Some affected include a 98-year-old woman and a widow relying on benefits due to delayed payments.
- Capita has a history of delays and lost contracts for other pension schemes.
- The UK government awarded Capita a £239 million contract despite previous issues.
- Parliament’s public accounts committee recommended bringing the scheme back in-house.
- The Cabinet Office confirmed Capita failed to meet deadlines and agreed to take the scheme back under government control.
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