Civil service pensions
Public Accounts Committee
Open
Inquiry
Opened: 6 May 2025
Parliament page
The civil service pension scheme has 1.7m members, either in work or retired. It paid out just under £8bn to scheme members in 2023-24, with its total liabilities coming to nearly £190bn in the same year. The Cabinet Office contracted with MyCSP to administer the scheme in 2014, taking over …
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18
Recommendations
9
Conclusions
1
Report
2
Oral sessions
25
Letters
2
Events
Activity timeline 31 events
21 May
2026
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14 May
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28 Apr
2026
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15 Apr
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15 Apr
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15 Apr
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15 Apr
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26 Mar
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Oral evidence
26 Mar
2026
2026
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
25 Mar
2026
2026
23 Mar
2026
2026
Oral evidence sessions 2 sessions
26 Mar 2026
View on parliament.uk
Chris Clements · Capita Public Services
Richard Holroyd · Capita
7 Jul 2025
View on parliament.uk
Cat Little CB · Cabinet Office
Duncan Watson · MyCSP
Fiona Ryland · Cabinet Office
Muna Rowe · Cabinet Office
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 49th Report - Administration of the Civil Service Pension Scheme | HC 888 | 24 Oct 2025 | 27 | Responded |
Recommendations & Conclusions
27 results
2
Recommendation
Accepted
49th Report - Administration of th…
Set out plan for remaining pension members affected by Remedy, including communication timeline
More than half of members who are drawing their pension and affected by Remedy are facing unacceptable waits until as late as 2027 to have their pension options set out for them. Applying remedies to members requires MyCSP to send …
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Government Response
The government agrees and states that its new pensions administrator, Capita, is undertaking discovery work to develop delivery plans for remaining affected members. It expects to conclude discovery by December 2025 and communicate detailed delivery plans and timescales to members in the first quarter of 2026.
HM Treasury
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3
Recommendation
Accepted
49th Report - Administration of th…
Set out plan to ensure commercial capacity, contract management and adequate customer service from suppliers
The Cabinet Office has not demonstrated it has sufficient capacity and capability to manage the MyCSP contract effectively and has now failed on two occasions to adequately manage the transition from one supplier to another. The Cabinet Office accepts that …
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Government Response
The government agrees and states it has implemented a new contract with 38 Performance Indicators, including Key Performance Indicators, and a system of Service Points with associated penalties for various levels of failure, to ensure robust accountability and improved customer service from its new pensions administrator.
HM Treasury
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4
Recommendation
Rejected
49th Report - Administration of th…
Set out approach to ensure suppliers adequately recognise employee voice, including union recognition
In order to ensure a smooth transition from MyCSP to Capita it is important that appropriate consideration is given to the rights of staff members transferring across. MyCSP staff who are members of the PCS union have been on strike …
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Government Response
The government rejects the recommendation, stating it is prohibited by the Employment Act 1982 from forcing suppliers to recognise trade unions. It clarifies that its Social Value Model requires suppliers to ensure workers are informed of their right to join a trade union and have access to independent representation and grievance mechanisms, but does not mandate union recognition.
HM Treasury
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5
Conclusion
Accepted
49th Report - Administration of th…
Develop contingency plans for Capita's pension administration transition and update Committee on decision
There is a clear risk that Capita will not be ready to take over administration of the Scheme as planned on 1 December 2025. The planned date of transfer of administration from MyCSP to Capita is 1 December 2025. However, …
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Government Response
The government stated it has existing contingency requirements with MyCSP for system rollback and an option to extend support until May 2026 if needed. It confirmed the decision to transfer services to Capita on 1 December 2025 and informed the Committee Chair.
HM Treasury
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6
Recommendation
Rejected
49th Report - Administration of th…
Set out commercial strategy for pension administration, including benefits and costs of in-house delivery
There has been a small market of pension administrators bidding for the contract, potentially limiting the Cabinet Office’s ability to secure value for money for the scheme administration. Capita administered only some elements of the pension scheme before MyCSP took …
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Government Response
The government disagreed with the recommendation, stating it is legally required to follow the Procurement Act 2023 and its standard procurement process already includes reviewing in-house solutions for contracts.
HM Treasury
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1
Conclusion
Accepted
49th Report - Administration of th…
Committee scrutinised Civil Service Pension Scheme administration and planned transfer to Capita
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office and from MyCSP on the administration of the Civil Service Pension Scheme (the Scheme) and arrangement beings made for the planned …
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Government Response
The government outlined that Capita's financial model specifies minimum staff levels and will provide 6-monthly updates. Capita is actively recruiting an additional 60% of staff, many already undergoing training, to manage backlogs. The government confirmed the service successfully transitioned to Capita on 1 December.
HM Treasury
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7
Conclusion
Deferred
49th Report - Administration of th…
High complaint levels linked to MyCSP staff shortages and turnover from contract transfer
We asked the Cabinet Office and MyCSP why complaint levels were so high. Both the Cabinet Office and MyCSP told us that complaint levels and performance failures in 2024 were partly attributable to a shortage of staff. MyCSP’s core staffing …
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Government Response
The government's response, despite stating agreement and implementation, discussed effective engagement, developer contributions, and support for Local Planning Authorities, completely unrelated to the pension scheme administration and staff shortages mentioned in the committee's conclusion.
HM Treasury
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8
Recommendation
Acknowledged
49th Report - Administration of th…
MyCSP's increased staffing shows improving contact centre performance, but remains poor
We questioned MyCSP about what it was doing to ensure its staffing level was at the level it needed to be. MyCSP told us that it has recently increased staff numbers and contact centre performance is improving as a result. …
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Government Response
The government agrees with the recommendation and states that Capita's financial cost model identifies the minimum staffing levels required, and they are recruiting an additional 60% of staff to bolster the team, with flexible staffing arrangements to cover elasticity in demand.
HM Treasury
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9
Recommendation
Accepted
49th Report - Administration of th…
Capita's staffing levels require replanning due to delayed IT automation and missed milestones
Capita is planning to have 33 fewer staff in its first year running the Scheme than the 332 MyCSP had at the start of 2025.16 When we queried whether that would be enough to provide the right levels of service …
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Government Response
The government agrees and states that Capita's financial cost model identifies the minimum staffing levels required and that Capita is recruiting an additional 60% of staff to bolster the team and deal with backlogs, with a large number already recruited and in training, and the government says the transition to Capita has already happened.
HM Treasury
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10
Conclusion
Not Addressed
49th Report - Administration of th…
Progress on McCloud Remedy for current pensioners remains slow, 53% still affected
In response to the 2018 McCloud judgement, the Government created the ‘Remedy’ programme to implement remedies to all affected members across the public sector. Applying remedies to affected civil service members requires MyCSP to send Remedial Service Statements (RSSs) to …
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Government Response
The government response is missing for this conclusion.
HM Treasury
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11
Conclusion
Accepted
49th Report - Administration of th…
MyCSP ceased Remedy processing; Cabinet Office plans to contact remaining pensioners by March 2027
MyCSP is no longer processing Remedy cases whilst the Cabinet Office considers how it wants to deal with these remaining cases. We asked the Cabinet Office if it has a plan for when the remainder of those who are currently …
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Government Response
The government agrees to provide revised options for the Remedy period (2015 to 2022) for the remaining 56% (circa 132,100 impacted members) with discovery work expected to conclude in December 2025. They expect to be able to communicate detailed delivery plans with associated timescales during the first quarter of 2026.
HM Treasury
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12
Recommendation
Accepted
49th Report - Administration of th…
Cabinet Office lacks clear method for prioritising remaining Remedy cases amidst data complexity
The Cabinet Office was unable to tell us how it will decide which members may be waiting up until March 2027 and explained that this would be determined by the data and how the plan is constructed.25 It said that …
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Government Response
The government agrees and is working on implementing the Remedy, including providing revised options to the circa 132,100 impacted members who are drawing their pension, with discovery work expected to conclude in December 2025 and plans to communicate detailed delivery plans and target timescales to members in the first quarter of 2026.
HM Treasury
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13
Recommendation
Acknowledged
49th Report - Administration of th…
Cabinet Office contract with MyCSP lacked commercial levers, resulting in minimal fines
The Cabinet Office accepts that the contract with MyCSP has not always given it sufficient commercial levers to influence how the Scheme is being administered,27 despite having made multiple changes to the contract over its lifetime. For example, despite MyCSP’s …
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Government Response
The government agrees with the recommendation and states it has embedded a robust contract management policy with a standardised approach for administering and managing contracts, including ensuring staff are skilled and trained, and that the Civil Service Pension Scheme must meet the requirements of the contract management policy.
HM Treasury
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14
Recommendation
Acknowledged
49th Report - Administration of th…
New Capita contract incorporates stronger KPIs and penalties to improve accountability and performance
We asked the Cabinet Office what in the current contract was limiting it from holding MyCSP to account for its performance, and what lessons had been learned going forward with Capita. The Cabinet Office responded that the new contract with …
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Government Response
The government agrees with the recommendation and states it has embedded a robust contract management policy with a standardised approach for administering and managing contracts, including ensuring staff are skilled and trained, and that the Civil Service Pension Scheme must meet the requirements of the contract management policy.
HM Treasury
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15
Recommendation
Acknowledged
49th Report - Administration of th…
Cabinet Office repeatedly fails to manage smooth transitions between pension scheme administrators
The Cabinet Office’s difficulties managing the contract are particularly evident when transitioning from one supplier to another. This is the second time the Public Accounts Committee has seen the Cabinet Office fail to manage the successful transition from one administrator …
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Government Response
The government agrees with the recommendation and states the new contract contains 38 Performance Indicators (PI), broken down into Key Performance Indicators (KPIs) and Subsidiary Performance Indicators (SPIs) which cover all aspects of service delivery and allow for financial penalties.
HM Treasury
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16
Recommendation
Acknowledged
49th Report - Administration of th…
Cabinet Office confident in its capacity to manage outsourced pension contract risks
We questioned the Cabinet Office about how we can be assured that it had the capacity to ensure that contractors deliver. The Cabinet Office said that it is fairly confident it has the right expertise and capacity to manage the …
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Government Response
The government agrees with the recommendation and states the new contract contains 38 Performance Indicators (PI), broken down into Key Performance Indicators (KPIs) and Subsidiary Performance Indicators (SPIs) which cover all aspects of service delivery and allow for financial penalties.
HM Treasury
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17
Recommendation
Rejected
49th Report - Administration of th…
Staff uncertainty and strike action threaten pension scheme transition due to TUPE issues
On 24 June 2025, MyCSP staff who are members of the PCS union announced six weeks of strike action planned to take place in the period preceding the transition in protest at the lack of PCS involvement in Transfer of …
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Government Response
The government disagrees with the recommendation to ensure suppliers recognise employee voices through union recognition, stating it's prohibited from forcing suppliers to recognise unions under the Employment Act 1982, although the Social Value Act ensures fair working conditions, including the right to join a union.
HM Treasury
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18
Conclusion
Rejected
49th Report - Administration of th…
MyCSP's refusal to recognise PCS union impacts staff relations, though Capita offers hope
MyCSP told us that it does not recognise the PCS union for collective bargaining or otherwise, because MyCSP is a part-mutual organisation with an elected, formal employee works council who are involved in negotiating terms, conditions and pay.37 It did, …
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Government Response
The government disagrees with the recommendation to ensure suppliers give adequate recognition to the voice of employees through union recognition. They state that the Model Services Contract has a clause for Social Value that successful bidders must comply with under the Social Value Model and that workers must have fair working conditions including the right to join a trade union or other forms of worker representation.
HM Treasury
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19
Recommendation
Not Addressed
49th Report - Administration of th…
Cabinet Office acknowledges union importance, but MyCSP's refusal prompts further strike action
The Cabinet Office acknowledged that it is in everyone’s interests for unions and members of staff to be listened to and stated that its industrial relations team were providing support and assistance where appropriate. The Cabinet Office also acknowledged it …
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Government Response
The government responds to a different recommendation on contingency plans for the Capita transition rather than addressing the issues around union recognition and employee negotiations.
HM Treasury
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20
Recommendation
Rejected
49th Report - Administration of th…
Government lacks policy requiring trade union recognition in contracts, but performance remains a concern
We queried with the Cabinet Office if it was normal practice to let a contract to an organisation that does not recognise trade unions.42 Although unable to give us a definitive answer at the time, the Cabinet Office subsequently wrote …
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Government Response
The government disagrees with the recommendation to ensure suppliers give adequate recognition to the voice of employees, stating that while the Social Value Model ensures fair working conditions and the right to join a trade union, it's prohibited from forcing suppliers to recognize trade unions.
HM Treasury
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21
Recommendation
Accepted
49th Report - Administration of th…
Capita's pension scheme transition experiences significant delays, impacting IT and payments withheld
The planned date of transfer of administration from MyCSP to Capita is 1 December 2025. However, of the eight transition milestones which have so far passed, only one has passed with all elements delivered on time.45 At the end of …
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Government Response
The government agrees with the recommendation and has requirements in place with MyCSP to roll back the system should issues arise during the transition to Capita, allowing service delivery to continue with MyCSP until 31st December 2025, with options to extend support until the end of May 2026 if needed. The Cabinet Office has also informed the Committee chair of the decision to proceed with the transition to Capita.
HM Treasury
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22
Recommendation
Not Addressed
49th Report - Administration of th…
Cabinet Office finds Capita underestimated pension transition complexity, causing significant delays
We questioned the Cabinet Office how confident it was that there would be a smooth transition and that members would receive no disruption to service. The Cabinet Office acknowledged that delays to key deliverables were a significant concern though noted …
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Government Response
The government responds to a different recommendation on contingency plans for the Capita transition rather than addressing confidence in a smooth transition for members.
HM Treasury
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23
Conclusion
Accepted
49th Report - Administration of th…
Cabinet Office preparing contingencies for Capita's IT readiness, awaiting September 'go/no-go' decision
We checked with the Cabinet Office what contingency plans it had should Capita’s IT systems not be ready on the transition date. The Cabinet Office asserted that it had several plans, including a more gradual roll-out of the Capita technology, …
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Government Response
The government states it has requirements in place with the current provider MyCSP in the event of a failure in the implementation cutover including the provision to roll back the system and options to extend support until the end of May 2026. It also states sufficient contingency in the Capita systems to ensure the delivery of service is increased this includes tightening of the commercial levers which will hold Capita to account for failures.
HM Treasury
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24
Conclusion
49th Report - Administration of th…
Capita's public sector pension administration history includes ongoing legal challenges from unions
Capita administered some elements of the pension scheme before MyCSP took on full responsibility for Scheme administration in 2014.54 Capita is now due to take on that full administrative responsibility from December. Capita already administers the Royal Mail Statutory Pension …
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HM Treasury
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25
Recommendation
Rejected
49th Report - Administration of th…
Small market for outsourced pension providers necessitates review to encourage new entrants and resilience
Noting the seemingly small concentration of suppliers, we queried with the Cabinet Office if the market for pension providers is too small and, if so, what it is going to do to ensure that it has more options in future …
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Government Response
The government disagrees with the recommendation, stating it adheres to the Procurement Act 2023, conducts market analysis, and reviews in-house solutions before making procurement decisions, ensuring equal treatment and transparency across the process.
HM Treasury
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26
Conclusion
Rejected
49th Report - Administration of th…
Public procurement regulations limit consideration of supplier's past performance in tendering.
We asked the Cabinet Office if it considers the past performance of companies when procuring suppliers. It said that it did take past performance into account.58 Subsequently the Cabinet Office has written to the Committee to clarify that public procurement …
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Government Response
The government disagrees, stating that it follows the Procurement Act of 2023 which outlines the requirements for ensuring equal treatment and transparency across the procurement process, including reviewing whether an in-house solution is a viable option.
HM Treasury
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27
Recommendation
Rejected
49th Report - Administration of th…
Insourcing government work often proves more expensive than outsourcing due to various costs.
If the market isn’t sufficiently competitive, one option we suggested that the Cabinet Office could consider is what value there might be to bringing the work in-house. The Cabinet Office said that ‘insourcing’ was always considered when making such business …
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Government Response
The government disagrees with the recommendation to set out its commercial strategy for pension administration including consideration of the benefits and costs of administering the scheme in-house, stating that it follows standard procurement procedures and the Procurement Act 2023.
HM Treasury
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Correspondence 25 letters
21 May 2026
To committee
Letter from the Prospect Deputy General Secretary relating to Dealing with Civil Service Pension Scheme (CSPS) member complaints about the impact of the unacceptable performance of scheme administrators, 15 May 2026
Parliament page
14 May 2026
To committee
Letter from the CEO of Capita Public Services relating to Civil Service Pensions, 5 May 2026
Parliament page
28 Apr 2026
From committee
Joint PAC-PACAC letter to the Minister for the Cabinet Office relating to the Civil Service Pensions scheme (CSPS)
Parliament page
15 Apr 2026
To committee
Letter from the CEO of Capita Public Services relating to the Administration of the Civil Service Pensions Scheme, 8 April 2026
Parliament page
15 Apr 2026
To committee
Letter from the Permanent Secretary of the Cabinet Office relating to the Administration of the Civil Service Pensions Scheme, 14 April 2026
Parliament page
15 Apr 2026
To committee
Letter from the CEO of Capita Public Services relating to the Administration of the Civil Service Pensions Scheme, 13 April 2026
Parliament page
15 Apr 2026
To committee
Letter from Chief Executive Officer of MyCSP relating to the Administration of the Civil Service Pension Scheme, 2 April 2026
Parliament page
25 Mar 2026
To committee
Letter from the Permanent Secretary at the Cabinet Office relating to Administration of the Civil Service Pensions Scheme, 24 March 2026
Parliament page
23 Mar 2026
To committee
Letter from the Managing Director of Capita Pension Solutions relating to an update of the civil service pension scheme, 20 March 2026
Parliament page
12 Mar 2026
To committee
Letter from the Chair of the Committee to the Chief Executive Officer of MyCSP Ltd relating to a follow-up to the Administration of the Civil Service Pension Scheme, 05 March 2026
Parliament page
12 Mar 2026
To committee
Letter from the Chair of the Committee to the Chief Operating Officer of the Civil Service relating to a follow-up to the Administration of the Civil Service Pension Scheme, 12 March 2026
Parliament page
2 Mar 2026
To committee
Letter from the Managing Director of Capita Pensions Solutions relating to a follow-up to the administration of the Civil Service Pension Scheme, 23 February 2026
Parliament page
23 Feb 2026
To committee
Letter from the Permanent Secretary at the Cabinet Office relating to a follow-up to the Administration of the Civil Service Pensions Scheme, 23 February 2026
Parliament page
23 Feb 2026
To committee
Letter from the Permanent Secretary at the Cabinet Office relating to a follow-up to the Administration of the Civil Service Pensions Scheme, 16 February 2026
Parliament page
13 Feb 2026
To committee
Letter from the Chair to the Permanent Secretary at the Cabinet Office relating to ‘Administration of the Civil Service Pension Scheme: Hardship loans’, 13 February 2026
Parliament page
9 Feb 2026
To committee
Letter from the Chair of the Public Accounts Committee to the Permanent Secretary at the Cabinet Office relating to the Administration of the Civil Service Pensions Scheme, 09 February 2026
Parliament page
9 Feb 2026
To committee
Letter from the Permanent Secretary at the Cabinet Office relating to the Civil Service Pensions Scheme recovery plan, 02 February 2026
Parliament page
6 Feb 2026
To committee
Letter from the Permanent Secretary of the Cabinet Office regarding Civil Service Pensions, 11 November 2025
Parliament page
2 Feb 2026
To committee
Letter from the Permanent Secretary at the Cabinet Office relating to the Committee’s findings and recommendations on the audit of the Civil Service Pensions, 22 January 2026
Parliament page
1 Dec 2025
To committee
Letter from the Head of Public Affairs and Government Relations at Capita relating to the transition of the Civil Service Pensions Scheme (CSPS), 25 November 2025
Parliament page
17 Nov 2025
To committee
Letter from the Permanent Secretary of the Cabinet Office relating to the Committee’s recent Report on Civil Service Pensions, 03 November 2025
Parliament page
16 Oct 2025
To committee
Letter from the Chief Executive Officer at MyCSP relating to the oral evidence session held on 07 July 2025 on Civil service pensions, 15 September 2025
Parliament page
4 Sep 2025
To committee
Letter from the Civil Service Chief Operating Officer and Cabinet Officer Permanent Secretary relating to the transition arrangements to Capita for the new administration of the Civil Service Pension Scheme and contingency plans, 05 August 2025
Parliament page
4 Sep 2025
To committee
Letter from the Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary relating to the follow ups on the oral evidence session held on 07 July 2025 on Civil Service Pensions, 28 July 2025
Parliament page
4 Sep 2025
To committee
Letter from the Senior National Officer at Public Commercial Services Union relating to the follow up on the oral evidence session held on 07 July 2025 on Civil Service Pensions, 29 July 2025
Parliament page