Capita issues apology on missed deadline on civil service pensions

Capita PLC on Tuesday apologised for distress and inconvenience after the company missed a ministerial deadline on civil service pensions in the UK.

The London-based outsourcing and business services company said it is working in collaboration with the Cabinet Office, but acknowledged that "service has not been good enough, particularly for members waiting on bereavement, retirement and quotation cases and we are sorry for the distress and inconvenience experienced by those members."

Capita had missed a June 30 ministerial deadline on delivering the full terms of a £239 million contract.

The company said: "We now have the processes, automation and technology in place to work through the backlog. Capita is assessing the implications of the matters contained in the statement and, if required, will update the market as soon as it is able to do so."

Capita will publish a "comprehensive" trading statement later this week, the firm said, outlining progress against its strategic priorities.

The Public & Commercial Services Union in mid-June had said that around 150 HMRC staff would be required to help clear backlogs and support core pension administration functions "that Capita has been unable to deliver."

Notably, cases including bereavement and ill-health retirements were due to be resolved in February, but had not been resolved by mid-June, the PCS had said.

Capita shares fell 10% to 290.90 pence each on Tuesday morning in London.

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