49th Report - Administration of the Civil Service Pension Scheme

Select Committee
Public Accounts Committee HC 888 24 October 2025
Report Status Response document linked Recorded deadline: 24 Dec 2025

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Conclusions & Recommendations 27 items (18 recs)
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Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Forth-ninth report from Session 2024-26 · published 19 Jan 2026
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Recommendations & Conclusions

27 results
2 Recommendation
Set out plan for remaining pension members affected by Remedy, including communication timeline
Recommendation
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 … Read more
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3 Recommendation
Set out plan to ensure commercial capacity, contract management and adequate customer service from suppliers
Recommendation
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 … Read more
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4 Recommendation
Set out approach to ensure suppliers adequately recognise employee voice, including union recognition
Recommendation
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 … Read more
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5 Conclusion
Develop contingency plans for Capita's pension administration transition and update Committee on decision
Conclusion
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, … Read more
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6 Recommendation
Set out commercial strategy for pension administration, including benefits and costs of in-house delivery
Recommendation
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 … Read more
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1 Conclusion
Committee scrutinised Civil Service Pension Scheme administration and planned transfer to Capita
Conclusion
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 … Read more
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7 Conclusion
High complaint levels linked to MyCSP staff shortages and turnover from contract transfer
Conclusion
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 … Read more
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8 Recommendation
MyCSP's increased staffing shows improving contact centre performance, but remains poor
Recommendation
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. … Read more
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9 Recommendation
Capita's staffing levels require replanning due to delayed IT automation and missed milestones
Recommendation
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 … Read more
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10 Conclusion
Progress on McCloud Remedy for current pensioners remains slow, 53% still affected
Conclusion
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 … Read more
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11 Conclusion
MyCSP ceased Remedy processing; Cabinet Office plans to contact remaining pensioners by March 2027
Conclusion
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 … Read more
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12 Recommendation
Cabinet Office lacks clear method for prioritising remaining Remedy cases amidst data complexity
Recommendation
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 … Read more
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13 Recommendation
Cabinet Office contract with MyCSP lacked commercial levers, resulting in minimal fines
Recommendation
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 … Read more
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14 Recommendation
New Capita contract incorporates stronger KPIs and penalties to improve accountability and performance
Recommendation
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 … Read more
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15 Recommendation
Cabinet Office repeatedly fails to manage smooth transitions between pension scheme administrators
Recommendation
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 … Read more
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16 Recommendation
Cabinet Office confident in its capacity to manage outsourced pension contract risks
Recommendation
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 … Read more
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17 Recommendation
Staff uncertainty and strike action threaten pension scheme transition due to TUPE issues
Recommendation
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 … Read more
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18 Conclusion
MyCSP's refusal to recognise PCS union impacts staff relations, though Capita offers hope
Conclusion
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, … Read more
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19 Recommendation
Cabinet Office acknowledges union importance, but MyCSP's refusal prompts further strike action
Recommendation
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 … Read more
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20 Recommendation
Government lacks policy requiring trade union recognition in contracts, but performance remains a concern
Recommendation
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 … Read more
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21 Recommendation
Capita's pension scheme transition experiences significant delays, impacting IT and payments withheld
Recommendation
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 … Read more
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22 Recommendation
Cabinet Office finds Capita underestimated pension transition complexity, causing significant delays
Recommendation
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 … Read more
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23 Conclusion
Cabinet Office preparing contingencies for Capita's IT readiness, awaiting September 'go/no-go' decision
Conclusion
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, … Read more
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24 Conclusion
Capita's public sector pension administration history includes ongoing legal challenges from unions
Conclusion
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 … Read more
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25 Recommendation
Small market for outsourced pension providers necessitates review to encourage new entrants and resilience
Recommendation
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 … Read more
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26 Conclusion
Public procurement regulations limit consideration of supplier's past performance in tendering.
Conclusion
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 … Read more
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27 Recommendation
Insourcing government work often proves more expensive than outsourcing due to various costs.
Recommendation
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 … Read more
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