Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Acknowledged
Cabinet Office repeatedly fails to manage smooth transitions between pension scheme administrators
Recommendation
The Cabinet Office’s difficulties managing the contract are particularly evident when transitioning from one supplier to another. This is the second time the Public Accounts Committee has seen the Cabinet Office fail to manage the successful transition from one administrator of the Scheme to another without a drop in performance levels during that period. MyCSP’s 27 C&AG’s Report, para 3.9 28 C&AG’s Report, paras 1.5 and 1.15 29 Qq 68 30 Q 69-70 10 poor customer service record over the last two years mirrors the same drop off that occurred when Capita was handing elements of the Scheme administration over to MyCSP in 2014.31
Government Response Summary
The government agrees with the recommendation and states the new contract contains 38 Performance Indicators (PI), broken down into Key Performance Indicators (KPIs) and Subsidiary Performance Indicators (SPIs) which cover all aspects of service delivery and allow for financial penalties.
Government Response
Acknowledged
HM Government
Acknowledged
3. PAC conclusion: The Cabinet Office has not demonstrated it has sufficient capacity and capability to manage the MyCSP contract effectively and has now failed on two occasions to adequately manage the transition from one supplier to another. 3b. PAC recommendation: [The Cabinet Office should set out in its Treasury Minute response:] • what measures it intends to put in place to ensure adequate customer service from suppliers in the transition period between contracts. 3.7 The government agrees with the Committee’s recommendation. Recommendation implemented 3.8 The Cabinet Office has a number of levers in the new contract that can be utilised if service were to deteriorate in any period including any transition period. 3.9 The new contract contains 38 Performance Indicators (PI), broken down into Key Performance Indicators (KPIs) and Subsidiary Performance Indicators (SPIs). These cover all aspects of Service delivery, including data accuracy, member communications, statutory requirements, benefits calculations and accuracy, employer interfaces, transfers in and out, overpayments, complaints and IDRP, revisions, quotes etc. 3.10 If the level of performance of the Supplier during a Service Period is below the Target Performance Level in respect of a KPI, or the Supplier fails to rectify an applicable Minor KPI Failure within the Tail Fail Period, Service Points shall accrue to the Supplier as defined in the contractual Key Performance Indicator. 3.11 Thresholds for failure fall into three primary categories: Minor, Serious and Severe. Minor failures do not normally invoke Service Points, unless it is a repeat failure or is not rectified within the Tail Fail Period. Serious and Severe failures will invoke Service Points based upon the severity of the failure. 3.12 The government has reviewed the current contract and ensured that they have tightened the commercial leverage available linking to the above measures to ensure poor performance can be appropriately penalised. 3.13 This includes call answer rate and the payment of pensions and lump sums.