MPs have raised concerns that administrative failures in the Capita-managed civil service pension scheme could force bereaved families to miss critical deadlines for tax-free lump sum payments. The scheme’s handling of claims has reportedly created such disorganization that some payments may no longer qualify for tax exemptions, potentially leaving families with unexpected financial burdens. The government has been urged to address the situation before families face significant tax liabilities.
MPs say ‘chaos’ at Capita-run scheme could mean some claims miss tax-free time limit on lump sum paymentsBereaved families could face “unconscionable” tax bills because of “chaos” in the civil service pension scheme, the government has been warned.Some lump sum pension payments to families are only tax-free if made within two years of a scheme being told of the member’s death. Continue reading...
