FDA respond to Ministerial Statement on civil service pension crisis

FDA welcomes the “serious response and decisive action” announced by the government to address pensions crisis and Capita’s “inability to deliver”.

As reported in Civil Service World, FDA Assistant General Secretary Adrian Prandle stressed that “it is right that the terms of contract are being used to address failings” and the “severe” consequences they have had for members.

Prandle’s response was a reaction to the Ministerial Statement issued by Paymaster General and Minister for the Cabinet Office Nick Thomas-Symonds, which addressed Capita’s poor administration of the Civil Service Pension Scheme (CSPS) and the continuing pensions crisis.

The statement labelled the administrator as “completely unprepared” to take over the contract. That lack of preparedness led to an “overwhelmed” system, which resulted in the backlog that created 120,000 unresolved cases.

Thomas-Symonds announced that the government has withheld £9.9 million in payments to Capita, and that the cost of deploying more than 140 Cabinet Office officials to clear the backlog would be recovered directly from Capita.

Prandle added:

“Our members, many of whom have devoted decades of service to the public, have faced unacceptable delays in receiving payments from pensions to which they have contributed to in good faith throughout their careers. 

“For some, the consequences have been severe. Members experiencing serious or terminal ill health have seen ill health retirement plans disrupted, while others have been forced to retire without certainty about when their pension benefits will be paid. Plans have been dashed, lives have been put on hold, and significant life decisions have been delayed indefinitely. There can be no doubt that they, and many others, have been badly let down. 

“We will continue to engage constructively with both the government and Capita, but our members’ frustration is both understandable and justified. They need – and deserve – to see tangible and sustained improvements across all aspects of the pension service. 

“Whether a case is designated high priority or remains in the wider backlog, every member’s situation is critically important to them. Patience is understandably running out, and restoring a fully functioning service is essential”. 

Thomas-Symonds also announced that, following Capita’s failure to meet contractual levels by its 30 June deadline, “immediate technical intervention” will see independent auditors probe “system integrity” and “force rectification directly on the ground”.

At the joint evidence session on the CSPS crisis, Thomas-Symonds confirmed that the feasibility of a longer-term in-house model is being tested. However, it was stressed that the government cannot walk away from the Capita contract until they are confident they have a sustainable alternative.

Whilst the FDA “welcome the longer-term feasibility study into how the service could be provided in the future”, Prandle also warned that, “it is vital that none of this detracts from securing action for pensioners facing financial hardship and all other scheme members. Those who have served the public throughout their working lives deserve nothing less”.