Summary
Some retired civil servants in the UK did not receive their pension payments this month after the company managing their pensions, Capita, failed to make the payments. Capita took over the administration of the Civil Service Pension Scheme in December and now has an unexpected backlog of pension cases to handle. The company apologized and is working to resolve the issue.
Key Facts
- The Civil Service Pension Scheme serves 1.7 million public sector workers in the UK.
- Capita took over managing the scheme in December with a seven-year contract worth £239 million.
- Some retirees did not receive their expected pensions due to a backlog of 86,000 cases.
- Capita expected a backlog of 37,000 cases but found it to be much larger.
- Retiree Steve Duell reported financial difficulties due to the non-payment.
- Another retiree, Paul McKenna, is facing uncertainty and stress, having planned to use his pension for significant expenses.
- Capita has increased its workforce on this project to over 500 people to address the backlog.
- The Public Accounts Committee had warned Capita might not be ready for the transition.
