We’ve all questioned that outlay, that monthly amount of pay you never see. But you know it’s the right thing to do. That portion of pay that will be worth more to you later than it will now. Despite the financial pressures you may face across your working life, from the economy’s ups and downs and shocks to the cost of living, to starting a family, buying a house, or covering the cost of care, you’ve kept up paying into the pension you are sure will be there providing an income when your career is over. Some compromise now for an essential benefit later. Dignity in retirement.
At the turn of the year widespread frustration with the level of service being provided by successive administrators of the Civil Service Pension Scheme (CSPS), turned to widespread injustice. It’s one thing not being able to answer calls or respond to members queries via email (and let’s not downplay this, as hugely significant life decisions relied on this information being provided) but quite another to not be paying pensions upon retirement. A scandal you might say.
But our members, and their colleagues in the civil service, have faced just this. Many will have paid in for four decades. None will have expected it possible they could retire without their pension being paid to them.
It has taken a civil service team to begin – and there is still some way to go – to get things back on track. The CSPS’s recovery taskforce – led by the impressive Angela MacDonald, Second Permanent Secretary at HMRC – has focussed rightly on first getting money to those most in need, followed by all who should be in receipt of a pension, whilst improving the chance of contacting administrator Capita and being responded to. The promise of AI and technology as key parts of Capita’s service as administrator has not got off to a great start, with members locked out of the portal and finding minimal information there when they can log in. But the union’s regular meetings with MacDonald and her team have shown a commitment to not just bring the service up to scratch, but to ensure appropriate service levels will be sustainable.
There is another part of the picture still to come: accountability for how the scheme administration arrived at such a low point.
However, there is another part of the picture still to come: accountability for how the scheme administration arrived at such a low point. This isn’t a straightforward picture – the Cabinet Office as scheme manager will have questions to answer and there will be scrutiny of the effectiveness of the levers and service level agreements with contractors. The balance of responsibility between the old contractor, MyCSP (Equiniti), and the new, Capita, is not yet clear. Were contexts for the administrators, such as an existing backlog at transfer, dealing with the McCloud remedy, and having a huge programme of voluntary exit schemes needing support, insurmountable or avoidable? The FDA will continue to press for authoritative investigations and consideration of appropriate compensation, and is pleased parliament has been showing interest through its committees and debates.
Central to avoiding a repeat crisis is increasing transparency: acceptable service levels from the administrator need to be reached and sustained, and knowing more about administrator performance is important. For example, there should be regular publication of data on answering contacts and timely processing of payments. Service level agreements and KPIs must be open to public or parliamentary scrutiny, to support Cabinet Office and administrator accountability. If problems emerge with administrator service, then trade unions should be alerted and scheme members communicated to regularly. And trade unions require an effective escalation route to help get members’ cases resolved by the administrator.
Dedicated civil servants retiring without a pension – or, for some, even knowing what their pension is worth – is unacceptable.
Dedicated civil servants retiring without a pension – or, for some, even knowing what their pension is worth – is unacceptable. Family plans for post-retirement were abandoned, finances needed rethinking and commercial loans or borrowing from family resulted. Hardship was faced and some felt they had no choice but to delay their retirements. This must never happen again.
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