Outsourcing firm Capita said the National Audit Office has launched a review into its administration of the UK’s Civil Service pension scheme.
Capita said it accepts that its performance running the scheme “remains below the standards that scheme members and the Government rightly expect”.
The company apologised earlier this year for a series of failings linked to the contract. In July, chief executive Adolfo Hernandez admitted there had been delays in administering the 1.7 million-member scheme, leaving thousands of civil servants waiting for payments and retirement quotes.
Capita also failed to meet a June 30 deadline to deliver the terms of the £239 million pensions contract, after missing earlier targets. The Government withheld nearly £10 million in payments to the company over its performance on the Civil Service scheme, amid calls for Capita to lose the contract.
Capita said it would “engage fully and transparently” with the National Audit Office, the Cabinet Office and other relevant stakeholders. It added that it had made “good operational progress” across priority areas of the pension scheme in August and September.
“Capita recognises the need for continued service improvement, and we are implementing further automation along with stronger governance including improved management information,” the company said.
“The remediation of CSPS (civil service pension scheme) remains the Group’s top priority.”
Capita previously said issues with the contract could reduce its earnings by as much as £40 million.
