From Angela MacDonald, Second Permanent Secretary
28 May 2026
The Civil Service Pensions Taskforce is continuing to work alongside the scheme administrator, Capita and there continues to be a lot of focus on the outstanding quotes, including ensuring the data used is correct. For those of you who have received your quote or are waiting for one, there is a ‘Quotes Hub’ on the Civil Service Pensions website to help answer some common questions members have. An FAQ document is also being inserted into quotation packs. Please read the questions in the hub, and the FAQ document if you have received a quotation pack, before calling the helpline, as you may well find your answer there.
Before you return your quote pack to Capita - make sure you’re happy you have understood and checked everything as decisions can’t be changed. Keep a copy of everything you send, just in case you need to refer to the information.
I want to remind you that quotations being issued by the end of June does not mean members’ pensions will be in payment by the end of June. Once you have received your quote, you need to confirm your retirement decision and return the pack to Capita, who will check the paperwork returned and then put the pension into payment. This means first payments could be around July or August. If your case is more complex and requires additional information, you may be contacted by Capita with further questions. For the majority of members, however, this should be a straightforward process..
Since my last update, a further 800 quotes will have been issued by Friday 29 May. I have to urge members waiting for quotes: please don’t call the contact centre to ask where yours is, as those answering the calls will not be able to give you that information. I understand your distress and frustration at these delays, but there is a lot of back and forth going on in the background to ensure your quotes include accurate information. This back and forth can mean that some members are receiving their quote with a later retirement date before those with an earlier date. Please be assured that this process is being actively managed.
Because there have been further delays, it has been agreed that the Transitional Support Loan payments can be increased to a maximum of £20,000 in exceptional cases, should members need additional financial support to bridge the gap. If you are struggling and need this support, please contact the appropriate team dealing with Transition Support Loans in your department. This really is not the situation we ever wanted to be in, but it continues to be necessary intervention by Civil Service employers to step up to help their employees.
We are working to pay any pension arrears as quickly as possible, but I do also need to flag that 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.
We continue to see escalations from understandably distressed members who are having to retire due to ill health or where there is bereavement, whether for a member in service or an already retired member. We know this is an area where we had been informed that service had significantly improved and therefore it is very disappointing to see that this is not what is happening. We are working with employers and with Capita to identify relevant cases and address the poor service delivery. I am sorry this is happening, it is not acceptable.
Finally, I can confirm that Capita went live with the 2024/25 Annual Benefit Statements (ABS) on the member portal earlier this month. Thousands of you have already signed into your accounts to view or download them. Please remember, this is a simplified version of the ABS which the previous administrator produced and shows your benefits to 31 March 2025. It is not a recalculation of the figures with new pensions data. Your address or death benefit nomination(s) are not included in this ABS document: this does not mean your details have been lost, just that they have not been included in this version. Sign in to review or update this information.
If you didn’t get a statement last year (you may be one of those people with a complex record) then you will need to wait a little longer for your ABS, but please be assured your pension data is safe. If you started in the Civil Service between 1 April 2025 and 31 March 2026, you will get your first ABS later in 2026. Capita will be creating an ABS Q&A webpage shortly which will also include useful information on registering for the portal.
As we head towards the end of June, we are working with Capita to ensure as many people as possible see an improvement to the service they have experienced thus far. We are exploring all areas where members highlight that your experience is not aligned with the operational data that we receive. There remains significant work to do and Civil Service teams continue to work hard with Capita to deliver for all affected colleagues. I know we still aren’t in a good enough position with too many families impacted by what is happening. The recovery team will continue to provide you with regular updates on actions being taken. I want to thank you for your valuable feedback and continued fortitude.
Angela MacDonald
Second Permanent Secretary, HMRC
