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Civil Service Pension Delays: Veteran Reports Four-Month Wait After Outsourcing

A former civil servant’s reported four-month wait highlights pension administration problems after the scheme transferred from MyCSP to Capita. The Cabinet Office later outlined recovery work, but did not confirm his individual case was resolved.
From TheFinanceBase Team3 min to read
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Former civil servant Steve Tessier told Computer Weekly on 4 March 2026 that he had gone more than four months into retirement without receiving pension payments. He said his savings were dwindling and that he had no other income. His account illustrates the disruption reported after administration of the Civil Service Pension Scheme moved from MyCSP to Capita; it does not establish the current status of his individual case.

What happened to Steve Tessier’s pension?

Computer Weekly reported that Tessier, who had served in the civil service for more than 40 years, had not received pension payments more than four months after retiring. He told the publication: “There should be no doubt that I am incandescent with the way that I – and tens of thousands of others – are being treated.”

Tessier also criticised the outsourcing arrangement, saying: “We’ve lost control and we’ve lost accountability over the services that those companies provide.” These are his views as reported by Computer Weekly, not formal findings about responsibility for his delay.

The report does not establish whether Tessier later received his pension. A subsequent Cabinet Office update describes scheme-wide recovery work, but does not confirm payment to him.

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Why were Civil Service pension payments delayed?

Administration of the Civil Service Pension Scheme transferred from MyCSP to Capita on 1 December 2025. The Cabinet Office awarded Capita a seven-year contract worth £239 million in 2023, according to Computer Weekly. The report put the scheme’s membership at 1.7 million.

As reported by Computer Weekly, Capita attributed problems to thousands of unread emails and millions of inherited database errors. Those figures are Capita’s explanation as relayed by the publication; the available accounts do not establish that they were independently audited or settle what each party knew before the transfer.

The Cabinet Office said the core payroll for people already receiving pensions remained stable. That is distinct from backlogs and delayed payments affecting some cases, and does not mean every scheme member went unpaid.

What has the Cabinet Office said about recovery?

In an update dated 2 March 2026 and revised on 5 October 2026, the Cabinet Office described intensive recovery work on inherited backlogs. It said all 15,000 inherited unread emails had been opened and assessed. It also reported that 6,078 outstanding lump sums and arrears had been inherited at transition; payments had been made or missing documentation followed up, and in some cases 70% of pension arrears had been paid.

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The update said remaining arrears were scheduled for payment within eight weeks of the 2 March update and that interest would be applied to delayed sums. It did not state an interest rate or detail how interest would be calculated or paid.

The Cabinet Office also reported that more than 90% of calls were answered within 30 seconds for much of the final week of February, and that the overall answer rate was 99%, compared with 27% in January. These are figures reported in the official update, not a guarantee of an individual caller’s experience.

The update listed June 2026 as the taskforce’s target for restoring all service areas to standard contractual levels. It states a target, not confirmation that it was achieved.

What support was mentioned for people affected?

In the Computer Weekly report, a Cabinet Office spokesperson said: “An interest-free loan is being made available via departments to provide immediate financial support where it is needed.” The report did not set out eligibility or how to apply, so affected retirees would need to seek current details from their department or the scheme’s official channels.

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A Capita spokesperson told Computer Weekly it was “deeply sorry for the worry, distress and frustration these issues have caused.” Tessier’s account raises questions about communication and case support, but neither the report nor the Cabinet Office’s scheme-wide update establishes what support every affected pensioner received.

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What remains unclear about the handover?

The available accounts do not answer what the Cabinet Office and Capita knew about inherited records and risks before the transfer, or whether the data provided by MyCSP was complete and fit for use. Tessier himself said he did not know whether the handover data was adequate. Nor do the accounts establish whether the June service-level target was met or whether Tessier’s own pension was subsequently paid.

For an individual with a delayed payment, scheme-wide recovery figures cannot determine the status of a particular case. The Cabinet Office update says interest will be applied to delayed sums, but does not provide a rate or explain the individual calculation.

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