From Angela MacDonald, Second Permanent Secretary
13 May 2026
I tend to begin these updates by thanking you for your continued patience and support. We have been working on the recovery for four months now and remain focused on the end of June for Capita to be delivering a significantly improved service for everyone needing to interact with the Civil Service Pension Scheme.
I delayed this update from last Thursday so I could share a fuller update on our progress against Capita's plans. Around 1500 pensions have been put into payment in the last two weeks and Capita remains committed, by the end of the May pay cycles, to put into pension payment all members who have already received their lump sums. This step is vital, not only to bring to a conclusion the long-standing cases in the backlog, but also to ensure Capita has the future capacity to process the cases that will be due once members return their quotation paperwork as it clears through the outstanding work.
I have had a few queries about the tax treatment when arrears of monthly pensions are paid in one tax year when they would normally have been paid across two. I have had extensive conversations with HMRC on how this is handled by them and more details from HMRC will be added to the Civil Service Pensions website shortly.
Capita is still receiving high call volumes, at the end of last week, the average call wait time was 46 minutes. Although Capita has added more people to the call centre to answer calls, unless your enquiry is urgent, I request again that you do not call the contact centre to chase your outstanding case, Capita knows it is there and is working to clear the outstanding work. If you have any enquiries about 2024/25 Annual Benefit Statements (ABS), which are now live on the portal, the retirement modeller or any other digital enhancements, go to the Civil Service Pensions website in the first instance as announcements will be made there as they go live.
Turning to the production of retirement quotes and the commitment from Capita as to how it is going to process the outstanding full and partial retirement quotes during May and June. I have to stress that this does not mean that all those cases will be in payment by the end of June but that quotes will be issued to members in the first instance. Members will know that the retirement process has a number of steps with the issuing of a quote being the first step. Last week we started to see a material step up in the volume of quotes issued and by the end of this week, over 2500 quotes will have been posted to members. This compares to an average of about 400 quotes per week in prior weeks. Capita expects to maintain this increased level of quote production between now and the end of June.
It is always the case that members have questions when a retirement quote is received and Capita is going to try to answer as many of the common questions as it can. Some are in this update (see below), but Capita will be actively responding to the feedback we and they get on quotation questions, ensuring that information is available on the Civil Service Pensions website. Please review the questions and answers below before calling Capita. With so many quotes being issued in such a short period of time, Capita expect calls to the contact centre to be high and whilst it will be aiming to resource that as much as possible, you may face a wait until you are able to talk to someone.
From Monday 4 May and the following seven weeks to Tuesday 30 June, Capita has committed to producing pension quote requests that Capita inherited plus those that it has received since 1 December 2025 when it took over administration of the pension scheme. This pipeline of quote requests is made up of:
● active members who are wanting to partially retire
● active members who are wanting to fully retire
● partial retirees who want to fully retire
● deferred members (who no longer work for the Civil Service) who want to bring their pension into payment
Some member records are complex, they may include Added Pension, EPA/EEPA, Transfers in and 2015 Remedy options. Any combination of these possible scenarios means Capita needs to check the data it holds. In some cases, member information will need further clarification. If this is the situation, Capita may contact your employer and/or previous employer(s). There is a formal process for this, and Capita is already working with employers/shared service providers and payroll providers, so all parties are able to turn these requests around as quickly as possible.
Your retirement quote pack may be a long document. It will include your figures and supporting information so please read it carefully. A retirement quote checklist will also be included; use this to ensure you return all the relevant information back to Capita. Please take the time to read the pack carefully and keep a copy of the documentation you return to Capita for reference. Check that your personal details are correct and your date of joining and date of leaving are right. It is possible that some of the information, for example your salary, may be slightly out of date. Please don’t be alarmed about this. Capita and your employer are regularly updating the information they jointly hold, so your salary may be corrected when your quote is finalised or shortly after your pension is put into payment. You will not need to wait for and sign another quote. I’ve tried to anticipate some of the other questions you may have when you get your retirement quote, so please read below.
Finally, you may have heard that I will retire in July 2026, this was announced internally in my department (HMRC) in December 2025. A permanent successor to lead Civil Service Pensions is being recruited now and they will continue to prioritise this emergency intervention. In the meantime, I will continue to give my all to this recovery programme.
Angela MacDonald
Second Permanent Secretary, HMRC
Quotation FAQs
What is included in the pension calculation?
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Transferred in service or pension.
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Previous periods of service you have opted to combine on re-joining (periods you did not combine are excluded from this calculation).
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Added Pension or any Added Years you may have bought.
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Pension benefits for which you have bought an Effective Pension Age or Enhanced Effective Pension Age.
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Pension debits that have been applied following a divorce for example from a pension sharing order.
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Deductions to your pension where you have asked the Civil Service Pension Schemes to pay an Annual Allowance tax charge.
These together with your reckonable service and salary make up your quotation. Before issuing the quote, Capita will have confirmed with your employer the latest data held for you. If your quote isn’t what you expect then firstly, check whether there is anything in the FAQs that covers your question.
What is not included in your pension calculation?
Additional Voluntary Contributions (AVCs) (if applicable) will be paid separately by your AVC provider. Please contact them for details and option forms.
My retirement date is in the past, is this right?
Yes, because of the delays, your quote will state the retirement date or Last Day of Service you agreed with your employer or if you contacted Capita to inform them of the date. Assuming that this remains the date, you left your Civil Service employer, then you can sign the forms, and your pension will be paid with any arrears to that date. If you did not leave your Civil Service employer on that date, then you will need to give Capita and employer (if applicable) the correct date when you return your paperwork. A new quote may then need to be issued.
I think my reckonable service is wrong
Please contact your employer if you think your reckonable service is wrong. Reckonable service is the total length of time (years and months) that you have paid into the pension scheme, including any Added Pension, Added Years etc. It will not include any unpaid leave.
Why does my quote show my previous salary information?
When Capita and your employer have updated the data, they jointly hold, your pension calculation will also be updated. Most members’ salaries change very little in the months before retirement and therefore the quote you are sent will represent fairly accurately what you are going to receive, and you can return your forms. You will receive confirmation of the final figures when you receive your finalisation letter before your pension goes into payment.
Why does the quote look different to what I saw on the old MyCSP modeller?
The modeller would have provided you an estimate and should only be used for illustration purposes. The modeller had limitations and did not include deductions for Scheme Pays, Added Pension, Transfers in, EPA/EEPA etc. Therefore, it was always an approximation of your benefits and not a quotation.
Why does the quote look different from my last ABS?
Your ABS is an estimate of your benefits up to 31 March of the tax year only. Your quotation is based on recent data.
When do I make my 2015 Remedy (McCloud) choice?
If you are affected by the 2015 Remedy (McCloud), you will be provided with your choice in your quote pack. You will need to make a choice as to how you would like to take benefits for the Remedy period (between 1 April 2015 to 31 March 2022). Your options will be:
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Option One is based on you taking your remedy benefits from your legacy scheme (classic, classic plus, premium or nuvos) and joining alpha on 1 April 2022.
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Option Two is based on you taking your remedy benefits from alpha from 1 April 2015.
Look through both quotes and select the best option for you. Make sure you mark this on the Retirement Option Form.
I’ve applied for early retirement; how will this affect my calculation?
The earliest you can currently take your pension (unless you have a protected pension age) is age 55. This is changing to 57 from 6 April 2028. Pensions taken before normal pension age will be reduced as they are expected to be paid for longer. Your retirement quote will include any deductions that may apply for early retirement.
What is abatement?
If you retire taking your benefits from classic, classic plus, premium or nuvos, and continue to work for (or are re-employed by) a Civil Service employer, your pension may be reduced (known as abatement). If you partially retire, your combined post-retirement salary and pension should not be more than what you earned before retirement.
Alpha pensions are not subject to abatement. For more information read the abatement webpage.
Can I get a refund of any widow’s/widower’s pension contributions?
Members of the classic or classic plus pension schemes will have paid widow’s or widower’s pension scheme (WPS) contributions for some or all of their working life. Capita may refund these contributions if the member has been unmarried throughout their service or part of their service. From 1 April 2012, you will only receive a refund of the 1.5% WPS contributions paid. Any refund will be outlined in your finalisation letter.
I’ve looked through the FAQs but still believe that there is a mistake in my quote
Contact Capita via the secure inbox by signing into your online account or call 0300 123 6666 if you do not have an online account. Given the volume of quotes being issued in a short time, it may take Capita some time to come back to you, but they are anticipating a volume of queries and plan to clear quotation queries as soon as possible.
Where do I return my quote?
The business reply address is Civil Service Pension Scheme, PO Box 713, Darlington, DL1 9JZ (this address is included in your quote pack). Quotes can also be returned securely online by submitting via the member inbox of your online member account.
Will I get confirmation of my payments after I return my quote?
Finalisation letters will outline your monthly pension payment and arrears (if applicable) and when your lump sum payment (if eligible) will be paid. If you have a Pension Earmarking Order following a divorce, this will be applied when you take your benefits and will also be outlined in your finalisation letter. During this phase of catching up the outstanding cases, Capita will issue finalisation letters as soon as possible after receipt of the fully completed paperwork.
What if the figures in my finalisation letter look very different to my quote and it would have affected my choices - what should I do then?
Please contact Capita immediately.
How long will it take to get my pension payments after I return my paperwork?
It may take a few more months, if for example you receive your quote at the end of May, return your paperwork in June and your pension is finalised or put into payment on 15 July 2026, you will receive your first pension payment on 15 August 2026 with any arrears (if applicable) also paid.
If you get your quote at the end of June, return your paperwork in July and your pension is finalised or put into payment sometime in August, you will receive your first pension payment in September 2026 with any arrears also paid.
Your lump sum (if eligible) will be paid into your bank by BACS within seven days of receiving your finalisation letter. All payments will be paid into the bank account you put on the Bank Mandate Form you supplied to Capita when you chose your retirement options. If you change your bank account, you should tell Capita immediately.
How do I get financial advice?
Your options on taking your pension are critical choices and once made cannot be adjusted. Many members have been waiting a number of months to receive a quote and will be keen to sign and return forms and get pensions into payment. However, it is vital that all members make considered choices and if you need to get independent financial advice, go to the moneyhelper website and search for an independent financial adviser.
