BCSSS changes administrator
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The British Coal Staff Superannuation Scheme has decided to replace its pensions administrator, citing the new provider's focus on service quality.
The trustees chose to replace Capita with Brightwell following a review. Brightwell is already the administrator of the Mineworkers' Pension Scheme, as well as the BT Pension Scheme in which it originated.
The trustees said they chose Brightwell for its focus on providing members with a high-quality service. The new administrator will take over in October 2027. Capita will have held the contract for 10 years.
Capita has lost other large clients in recent years, including the Teachers' Pension Scheme. A contract to look after the Royal Mail Statutory Pension Scheme was cancelled by ministers because the administrator missed key milestones.
The cancellation came as Capita has been struggling to get on top of a large backlog of cases at the Civil Service Pension Scheme, which it won from MyCSP and took over last December. The administrator said it expects a £40m hit on profits from the CSPS issues. The government has been withholding milestone payments while the service as usual is not restored, but it continues to fund a 'surge team' from HMRC to support the private outsourcer in the recovery work.
The Teachers' Pension Scheme was with Capita until the end of October and has also come under fire for its administration. The Department for Education recently settled with teachers' union NASUWT over delays to cash-equivalent transfer values after the union issued a legal claim.
Administrators under scrutiny
Problems in pensions administration are not new but could be coming to the fore as more people have more pension accounts – combined with complex project work such as scheme consolidation, the McCloud remedy and pensions dashboards. Firms are also having to invest to stay ahead of ever more sophisticated attacks from hackers and scammers.
On Tuesday, the government said it will require administrators to adhere to minimum standards, focusing on accurate records, resilience and the ability to transfer administration services effectively.
Administrators looking after trust-based schemes will also have to register with the Pensions Regulator, but it is unclear if TPR will be given powers to deregister them as previously floated; the consultation response said only that the regulator will be able to "request information, investigate concerns and require administrators to put problems right" and, "where there are serious failings, TPR will be able to issue warnings, improvement notices and financial penalties".
A new report by the Pensions Policy Institute for the Pensions Administration Standards Association found that more memberships were being administered across fewer schemes between 2024 and 2025, with DC memberships within those schemes increasing by 7%.
The administration sector is at a crossroads, said PPI policy researcher Shantel Okello.
“The challenge is to invest in data, systems, and specialist people while protecting day-to-day services and preparing for disruption," she said.
PASA chair David Fairs said technology and AI have the potential to improve consistency and member service but will not remove the need for skilled administrators.
"Their expertise and judgement will remain essential to resolving complex cases, supporting members and making sure automated processes deliver the right results," he argued.
