From Angela MacDonald, Second Permanent Secretary
03 July 2026
Last week, I said I’d issue a follow-up update to outline Capita’s end of June position. I’m very aware of the stress and worry this is causing people and I’m working hard to ensure steps are in place to support members.
Quotations
Capita has now issued more than 15,380 quotes. We expect that by Monday of next week there will be c.4,000 left to be issued.
We are now focusing on the remaining cases to process them as quickly as possible during the next six weeks. We believe c.1,500 are complex cases which we are in the process of agreeing a new process for, this will involve offering calls to the affected members in order to address the outstanding issues on progressing the cases or explaining what additional steps are needed to ensure members can access their benefits. These members will be written to, and more detail will follow on the process.
I have to reiterate that quotations are issued 2nd Class via Royal Mail, so it will take some days for those posted on Monday 29 June and Tuesday 30 June to land on doorsteps. Royal Mail aims to deliver 2nd Class mail within three weekdays.
Again, I have to stress that members please read the FAQs included in the quotation pack or on the Quotes Hub to answer any questions you may have. It is critical that you make the right choice for you when taking your pension, and once you have made those choices, they can’t be changed.
Pension payments
Where all the paperwork has been returned, Capita are now processing payments within 15 days of receipt.
We want to ensure no member has been missed, in next week's update we intend to outline an approach where members who have returned their paperwork more than four weeks ago will be able to raise a query via a new channel so that we can identify any potential issues.
From July, completed quotation paperwork returned can expect to be processed within 10 to 15 working days, members will receive a finalisation letter (via 2nd Class post) in the first instance followed by a lump sum payment within 7 to 10 days of the date of that letter and a pension payment one month after the date of retirement. We will be monitoring Capita’s service delivery against this target.
Pension arrears
Finalisation letters will outline what, if any, pension arrears you are also due. If you receive an amount of money that you don't recognise, please wait to receive the finalisation statement before raising a query with Capita. As mentioned previously, quotations and finalisation letters are being mailed via 2nd Class post so a payment may arrive in your account before the letter. If you still need to contact Capita, please raise your query via the secure member portal.
If you receive several months of pension arrears, there may be tax implications. This factsheet in the Recovery Plan Updates section of the Civil Service Pensions website has been provided by HMRC colleagues specifically to help members with pension arrears and includes an example letter should you need to write to HMRC. The factsheet also contains important information about what will happen if the pension arrears move you into a higher tax band and that would have been avoided if the payments were correctly applied to a previous tax year.
Returning your quote successfully
Last week, I made reference to the confusion regarding Capita’s ID checking requirements. With the increased focus on scams and the importance of protecting our members, Capita has introduced additional checks to ensure pensions are protected.
It is vital that the highest standards of security are applied when paying pension entitlement. A variety of data sources will be utilised to ensure payments are made to the correct person but in some instances ID checks will be required. While we recognise this may cause inconvenience and frustration, increased security measures are the correct course of action.
When returning the quote claim forms please note they can be sent via post or the secure member portal. Please note that there is a 10MB file limit when returning your quotes via the pension portal. Photographs of quote pages are more likely to take you over the 10MB limit, so please save and upload your documents into a PDF or JPEG format. If your returned quote was over the limit, you will have received an error message asking you to try again. Members successfully submitting their quote via the pension portal will receive an acknowledgement and reference number.
Bereavements
There are currently 3,700 cases where Capita are waiting for families to return information to enable pensions to be put into payment. The cases were followed up during May. As we work through these, we recognise that specific circumstances may cause complications. For example, we are aware that probate impacts can cause additional delays and are working to provide information more quickly on this in the overall process.
I am very focused on the number of cases now available for processing within Capita, this currently stands at circa 4,500 (which includes data triage cases). I am tracking these very closely with a view to having them cleared by the end of July.
Death in Service and Ill Health Retirement cases.
Capita and the recovery team are tracking all older cases individually. They require an element of hypercare, so bear with us a little longer so we can progress your case.
Timescales to expect if you are wanting to retire.
Capita has committed to processing retirements within four months. Capita will not process quotation requests which are for dates beyond a four-month timescale. Members requesting a quote from July for a retirement date four months away should expect to retire and receive the correct pension payment on time.
Transfers in, Transfers out and Divorce letters.
All pension schemes have a statutory requirement to regularly review factors. This means that on a four yearly cycle linked to the scheme valuation activity is required to be undertaken. As a result of the findings some pension services linked to transfer values are temporarily paused while calculation factors are being updated. Capita will be writing out to approximately 4,000 members from 6 July giving you an update on your case. Please be reassured that we will make the necessary policy considerations to ensure that you do not lose out as a result of this delay.
Member portal.
A large number of calls to the contact centre continue to be about the member portal and how to register. Read this updated webpage on the Civil Service Pensions website for further information.
The end of June position.
We are aware that the status of the scheme at the end of June is an important point to reflect on the effectiveness of our recovery actions. We are assessing this in order to support Ministers and to ensure appropriate commercial actions are taken. But from the point of view of you as the members, the operational work to process cases continues unabated. Richard Vianello, the new Pensions Director joined the Cabinet Office Pensions team on Monday 29 June to provide the long term and permanent leadership of the Scheme. Richard will continue these updates starting from next week and then back into the fortnightly cycle from then on.
I end by acknowledging the unacceptable and awful experience that so many of you have had. My team and I have done all we can to improve the position in the last 6 months and have been able to help thousands of people. I'm grateful for the messages and the challenges I have received from many members. There is still more to do, and I am totally confident that the hard work will continue unabated under Richard’s leadership.
Angela MacDonald
Second Permanent Secretary, HMRC
