On the go: Capita Pensions has been awarded a five-year contract extension by the Universities Superannuation Scheme to deliver pension system and administration support.
Capita, which has fulfilled this function since 2015, will provide its pensions software to both the defined benefit and the defined contribution arms of the USS, enabling it to administer the pensions of its 460,000 members.
The DC section of the USS contains members from more than 340 higher education institutions, and the contract sees Capita provide administration services and resources to help with the collection and the investment of DC pension pots.
Commenting on the deal, Stuart Heatley, managing director of Capita Pensions, said: “We are delighted to extend our relationship with the USS. Their unwavering focus on member experience and digital ambitions mirror our own.
“This partnership will help us continue to deliver market-leading solutions for the benefit of scheme members,” he added.
Helen McEwan, chief pensions strategy officer at the USS, welcomed the extension of the contract with Capita. “Our partnership is critical to ensuring we continue to effectively engage with our members and employees,” she said.
Capita has previously been criticised for its handling of some public sector pension schemes. Pensions Expert reported in October last year on the latest raft of problems with the NHS Pension Scheme, which Capita has likewise administered since 2015.
The British Medical Association accused the provider of a number of administration failings that resulted in GPs being paid the wrong pension, incorrect allocations and records of contributions, and employer contributions being deducted for staff who had already left.
In December, Pensions Expert reported that as many as one in five teachers were at risk of receiving incorrect information about their pension entitlements due to poor record-keeping at the Teachers’ Pension Scheme, also administered by Capita.
Capita has had its contracts extended for both schemes.
