Capita acknowledged a larger-than-anticipated backlog of cases inherited upon taking over the scheme. The company issued an apology to those impacted by the delays.
Steve Duell, a 65-year-old retiree from Hull, said he might need to borrow money to cover his bills if his pension payment does not arrive by the end of the month. Duell, who retired on January 1 after 40 years with the Land Registry, expected to receive a lump sum shortly after his retirement. However, he stated that he has received no information regarding his retirement package.
Duell told the BBC that he has spent nearly 15 hours on hold attempting to contact the administrators. "We've got no money, and we've got lots of financial commitments," he said. "We need to pay off car loans and make mortgage payments."
The Civil Service Pension Scheme is a defined benefit scheme providing retirement income to former civil servants. The transition to Capita for administrative duties was intended to streamline operations. However, the backlog has resulted in significant disruption for many retirees who rely on these payments for their financial well-being. The situation highlights the potential challenges associated with outsourcing pension administration and the importance of ensuring a smooth transition to prevent disruptions in payments. The long-term impact on the retirees and the reputation of the Civil Service Pension Scheme remains to be seen.
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