Teachers' Pensions has faced significant challenges in processing pension payments, affecting many retirees, including one who recently experienced a two-month delay in receiving their pension. This issue arose when the individual did not receive their expected payments, prompting them to contact Capita, the current administrator of Teachers' Pensions, to resolve the matter.
Upon inquiry, Capita revealed that no checks regarding address, date of birth, or National Insurance number are conducted when sending out pension payments. Consequently, the individual had to confirm their identity through several means to receive their overdue payments. Capita explained that two letters concerning pension payments were dispatched to the individual 14 days apart, with payments halted two weeks after the second letter was sent.
In an effort to mitigate financial strain, the individual requested the cash equivalent transfer value (CETV) of their pension and received it shortly after contacting Capita. The Department for Education (DfE) had previously informed them that providing the CETV was intended "to avoid causing upset." However, delays are prevalent due to a considerable backlog of pension payments caused by recent legislative changes introduced in 2023. Last month, over 1,300 pensioners awaited their valuations, highlighting the extent of the issue.
The DfE is now investigating potential improvements to the pension payment system. Meanwhile, Capita's contract to administer Teachers' Pensions was not renewed and will be taken over by Tata Consultancy Services in October. This transition aims to address ongoing administrative challenges.
The individual affected by the delayed payments expressed concern over their financial situation and noted that they were instructed to wait ten working days for their missing payments to be credited. As a result, they are struggling to meet their next credit card bill obligations. The pension payment system's current processes may also be in breach of GDPR rules, as it fails to log disproved matches, necessitating annual identity confirmation for pensioners.
"This jeopardises the sale of the marital home and my onward purchase," – BF