Capita faces National Audit Office review over pension scheme administration

The National Audit Office has launched a review into Capita regarding its administration of the UK Civil Service pension scheme. The firm has acknowledged that its performance has remained “below the standards that scheme members and the Government rightly expects.”

Earlier this year, Capita apologized for various failings related to the contract. In July, CEO Adolfo Hernandez admitted to delays in administering the scheme, which serves 1.7 million members, causing thousands of civil servants to experience delays in receiving payments and retirement quotes. Capita also missed a June 30 deadline to deliver terms for the £239 million contract.

As a result of poor performance, the Government has withheld nearly £10 million in payments to the company, and there have been calls to strip Capita of the contract. The firm stated it is implementing further automation and stronger governance to remediate the situation, noting that earnings could be impacted by as much as £40 million due to these contract issues.