Capita Pension Solutions has reached a voluntary recognition agreement with the Public and Commercial Services Union (PCS), as the transfer of Civil Service Pension Scheme (CSPS) administration from MyCSP Ltd to Capita Pension Solutions begins today.

Capita said the agreement will give PCS members a “formal voice” in workplace matters as more than 350 MyCSP staff transfer to Capita under the new contract, which has gone live today, after more than a decade of MyCSP management.

A further 150 new Capita employees will support the service from central Liverpool, Cheadle and virtual teams.

The move follows months of scrutiny and union concern over the transition, including a Public Accounts Committee (PAC) report earlier this year that sharply criticised successive governments for failures in Civil Service pension administration and vindicated PCS’s long-running campaign over MyCSP’s performance.

PCS had also raised concerns over Capita’s initial handling of ballot arrangements for transferring staff, warning of a potential “company-led” process, and had repeatedly pressed
for formal engagement with the new provider as the handover approached.

Capita later confirmed it had begun union talks ahead of the switch.

However, today’s voluntary recognition deal marks the clearest sign yet of improving industrial relations as the contract goes live.

Capita’s chief people officer, Scott Hill, said the business was committed to building a “strong, positive relationship” with PCS.

“I want to extend a warm welcome to all our new colleagues joining Capita to deliver this important service for public servants,” he said.

“This agreement reflects our commitment to building a strong, positive relationship with PCS. We look forward to working closely with PCS to ensure a smooth transition of the service and a constructive partnership going forward.”

Capita Pension Solutions managing director, Chris Clements, added that the agreement showed how the firm intends to work with all stakeholders, including PCS, “to deliver the best service for pension scheme members who have delivered or are delivering essential services for the UK”.

He said that Capita would roll out a new, modernised service model using automation and AI to support teams while maintaining expert oversight.

“This voluntary recognition agreement is an important step in that journey,” he said. “It demonstrates our dedication to engaging with colleagues and working in partnership to deliver an excellent service for the 1.5 million members of CSPS.”

PCS general secretary, Fran Heathcote, welcomed the agreement, stating: “We welcome the recognition agreement between PCS and Capita, which gives our members a real voice in the workplace. We look forward to working towards building a positive industrial relations environment, which is in the best interests of the successful administration of the pension scheme.”

The CSPS administration contract formally transferred to Capita today (1 December), after more than a decade under MyCSP.

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