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Case studies

Teachers’ Pensions  

Running Teachers’ Pensions for the Department for Children, Schools and Families

Before we began running the Teachers’ Pension Scheme, it was labour-intensive and inefficient. Member queries were answered in weeks rather than days and files could easily be misplaced, leading to low productivity.

We set up a dedicated contact centre, providing one point of contact for all customer queries. We also introduced email and online access to give customers a choice of communications channels.

Our productivity improvements almost halved the staffing requirement from 450 to 250. But by generating new business we were able to redeploy 98% of redundant employees to other pensions contracts. We actively encourage staff to pursue professional qualifications, and ISO and IiP accreditation have been key factors in contributing to a staff retention rate of 97% and average service levels of 98%.

We’ve cut operating costs by 48% from some £17m to under 9m a year, and are currently working to generate a further £8m of savings.

 

"Capita’s initiatives and technological developments have brought the Teachers’ Pension Scheme to the forefront of pensions administration."

Head of the DCSF Scheme Management Unit, 2007

 

Fast facts
Start 

April 1996, then re-awarded in 2003 following competitive tender.

Staff retention

Staff retention rate of c97.5% and an average service level of over 98%

Costs cut

Costs cut by 48% from c£17m to c£8.9m per annum

Cost savings

£20m savings for the taxpayer in first 7 years and a further £8m forecast

Capita services

Maintenance of  member records
Pre-retirement administration
Pensions payroll and fund accounting

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