Legal action has been launched against the government over “unacceptable” pension delays for divorced and retiring teachers.
Law firm Leigh Day has launched a legal claim on behalf of current and former NASUWT union members who have waited several months to secure Teachers’ Pension Scheme valuations.
Without them, TPS members are unable to reach financial settlements in divorce proceedings or effectively plan for retirement, the lawyers said.
They are demanding an apology and compensation from the Department for Education and Capita Pension Solutions, which administers the scheme on the government’s behalf.
NASUWT general secretary Dr Patrick Roach stated the “unacceptable delays” have placed “financial and emotional burdens on teachers”.
“Teachers who have dedicated their careers to public service deserve better than to be left in limbo. The time for excuses is over.
“The government and Capita must act urgently to resolve these issues, provide compensation to those affected, and ensure that such failures are not repeated in the future.”
The valuations, called cash-equivalent transfer values (CETVs), determine a pension pot’s worth. They are often needed for divorce proceedings and retirement planning.
But Leigh Day said the delays “have left thousands of current and former teachers waiting over six months for a response”.
TPS: 80% of pension backlog cleared
It is understood this has forced some to remain in properties with partners where there has been a complete breakdown in relationships.
Regulations say CETV calculations must be provided within three months of the applicant’s request or, in exceptional circumstances, six months.
Leigh Day believes the “ongoing failures of Capita are in breach of its statutory obligations to members of the scheme”. NASUWT members “affected by delays of more than three months in receiving a CETV calculation may be entitled to compensation”.
Ryan Bradshaw, of Leigh Day, said: “This backlog must be cleared immediately, and those affected deserve compensation for their financial losses and the stress endured.
“Without proper accountability and reform, this situation sets a dangerous precedent for how we value and treat our public servants.”
Capita declined to comment. However in an update published last week, the TPS apologised for the delays and said it had “made significant progress to reduce the backlog that built up whilst the necessary guidance was developed”.
Eighty per cent of those CETVs have been issued. It attributed the delays to the need to draw up new guidance after rule changes which meant it had to calculate pension values in a different way.
Capita, which has managed TPS for 27 years, will hand over the contract to Tata Consultancy in October.
DfE has been approached for comment.
I experienced this a few years ago – and it is sad to see that things haven’t materially improved.
Like the Student Loan company they seem to be very hard to deal with.