Following concerns around the administration of the Civil Service Pension Scheme (“CSPS”), outsourcing firm Capita took over scheme administration for the CSPS from MyCSP on 1 December 2025. The transfer saw Capita inherit approximately 86,000 outstanding pension cases, with a further 120,000 new cases having been received by the administrator since the transfer last year. The backlog has caused administrative delays resulting in significant inconvenience to scheme members, requiring a rapid response from the administrator and the Government.
Unacceptable Levels of Service
Prior to the transfer, a parliamentary report highlighted the “unacceptable” levels of customer service delivered by MyCSP, noting that only 8% of calls were answered within 30 seconds and that complaint levels had reached their highest point since 2016/17. Parliament warned that these poor service standards were likely to persist under Capita’s management and raised significant concerns about Capita’s readiness to assume responsibility for the scheme on 1 December, citing previous failures to meet transition milestones in the lead up to the transfer.
Those fears were realised once Capita took control of the scheme on 1 December, following which date members began reporting various administrative issues, including difficulties accessing the online pensions portal, missing data in their pensions records and delays to pension payments. These issues caused financial strain for members, particularly those expecting imminent pension payments and those in priority groups, such as individuals in ill-health retirement or awaiting death-in-service benefits.
Recovery Plan and Joint Response
In January 2026, Capita and the Cabinet Office issued a joint statement acknowledging the ongoing backlog, apologising to members, and committing to a comprehensive recovery plan aimed at clearing outstanding cases and addressing underlying issues. Central to the delivery of the recovery plan is a “surge team” 250 additional staff from both Capita and the Government, tasked with delivering three sprints to restore service levels by June 2026.
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Sprint 1
Concluding on 6 February 2026, Spring 1 focused on mobilising the recovery plan, improving call-handling performance, and introducing a transition support loan scheme for scheme members experiencing financial hardship. Eligible members may access interest-free loans of £5,000 or up to £10,000 under exceptional circumstances.
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Sprint 2
Sprint 2 completed on 22 February and prioritised restoring service levels for the most critical member groups, including those dealing with bereavement and ill-health retirement. This phase also addressed technical and data-related issues to ensure the scheme’s long-term stability. Unpaid or missing lump sums and arrears have either been paid or followed up, and it is expected that the remainder of pension arrears will be paid within the next 8 weeks.
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Sprint 3
Sprint 3 is currently underway and is due to conclude on 20 March. It is aimed at resolving the remaining priority cases where documentation has not yet been provided and establishing measures to secure future scheme stability. Efforts to reduce the backlog will continue on an ongoing basis through to June 2026, at which point the scheme the last of the priority cases and finalising plans for stability going forward. The backlog will continue to be reduced on an ongoing basis up until June 2026, when it is expected that service standards will be fully restored.
Looking Forward
Looking ahead, the government has confirmed that a full review of the CSPS transfer and its failures is set to begin by summer 2026. Whilst the recovery plan is progressing well, the difficulties encountered during and after the transfer serve as a clear reminder of the critical importance of robust pensions administration. As the recovery plan enters its latter stages, the focus will remain on restoring confidence in the administration of the scheme and reinforcing the safeguards necessary to protect members’ long‑term financial security.
If you have any questions about the issues raised in this blog, please contact Juliet Bayne or your usual Brodies contact.
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