The Civil Service Pension Scheme (CSPS) has given Capita a new contract to manage the scheme for the Cabinet Office from September 2025.

The deal for the CSPS, which is one of the largest public sector pension scheme in the UK, is worth £239m over 10 years.

Under the new contract, Capita will aim to modernise the pension administration systems through “enhanced system design and digital innovation”.

Capita stated that it will integrate generative artificial intelligence technology to “transform” the pension experience for CSPS members, providing members with personalised digital channels to help them plan and manage their retirement savings.

It said the enhancement of the end-to-end customer experience will create a more intuitive and innovative interactions for both client and pension members, while providing insights to support a data-driven approach for scheme employers.

Capita will be responsible for delivering employer and member services; pensions payroll; administration services relating to the Civil Service Compensation Scheme; Civil Service Injury Benefit Scheme; and related finance and accounting services.

Commenting on the announcement, Capita chief executive officer, Jon Lewis, said: “We are exceptionally proud to have been selected to administer the CSPS.

“This award is testament to the commitment of our colleagues to design innovative solutions and deliver exceptional customer experience.

“We are committed to offering seamless, tailored experiences and with generative AI we can deliver new levels of personalisation for all CSPS members.”

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