Civil Servants: Workplace Pensions
The question
To ask the Minister for the Cabinet Office, what assessment he has made of the potential risks of using (a) Capita, (b) Equiniti and (c) other private providers for pension administration; and whether he plans to review the 2023 procurement exercise.
Answered by Anna Turley
Prior to the 2023 procurement for the Civil Service Pensions Scheme (CSPS), the Cabinet Office conducted a formal, evidence-based Delivery Model Assessment. This assessment was carried out in line with Public Sector Procurement legislation and the Sourcing Playbook, evaluating the risks and benefits of various models, including insourcing.
The assessment considered capability, capacity, and value for money, which informed the decision to procure from the third-party market. The subsequent procurement exercise was competitive, attracting multiple bidders and confirming a viable market.
The new contract contains robust governance procedures and contractual options, such as step-in rights, to manage supplier performance. As is current practice, performance data will continue to be published to ensure transparency.
The 2023 procurement was a formal process conducted in line with all legal requirements and is now complete, and there are no plans to review the exercise. The department is now focused on the transition to the new service. Capita has been contracted to assume full administrative responsibilities from 1 December 2025.
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