London, UK – Retired firefighters from the Ministry of Defence’s fire and rescue service are facing significant delays and payment issues with their pensions, following a £525 million contract awarded to outsourcing group Capita in 2019.
Since Capita took over the administration of the Defence Fire and Rescue Project (DFRP), retired workers and spouses of deceased pensioners have reported miscalculated benefits and lengthy delays in receiving their payments. The mistakes have left some individuals waiting for up to eight months for money owed to them.
Trade union Unite has highlighted concerns about Capita’s upcoming contract to administer the entire civil service pension scheme in 2025, citing the issues faced by the retired members of the MoD fire and rescue service. These retirees were responsible for fighting fires on military bases in hazardous conditions.
Capita has admitted to providing incorrect employment data to the scheme’s administrator, leading to delays and payment miscalculations. The Cabinet Office has acknowledged these errors and expects them to be resolved by July 2024.
Retired members of the pension scheme have expressed frustration and financial strain due to the delays in receiving their rightful benefits. Unite has raised concerns about Capita’s ability to manage the civil service pension scheme, which has 1.6 million members and is set to be administered by Capita starting in 2025.
Capita has conducted internal audits to investigate the incomplete employee data submitted to the pension scheme’s administrator, MyCSP. However, the company has insisted that it is not solely responsible for the pension problems and has worked with Unite to rectify the payroll data issues.
The situation has caused significant distress for retirees like Frank Gallacher, who spent over 40 years contributing to the pension pot. Similarly, Sally Stringer expressed frustration over missing out on higher pension benefits associated with her late husband’s promotion.
Unite has emphasized the impact of these pension blunders on scheme members and has questioned the decision to award Capita the contract to administer the civil service pension scheme next year. The union’s general secretary, Sharon Graham, criticized the prioritization of cost-cutting and outsourcing over the well-being of pensioners.
As Capita prepares to take over the administration of the civil service pension scheme in 2025, the impact of the pension payment issues on retirees and the broader implications for the management of the scheme continue to raise concerns and prompt scrutiny.