Teachers threaten legal action being “left in limbo” due to delays in receiving pensions valuations
Teachers who have been affected by “major delays” in getting their pensions valued are threatening legal action against the Government and pension provider, Capita Pension Solutions.
Represented by law firm Leigh Day, former and current members of Teachers’ Union NASUWT claim the delays are causing “financial losses and emotional stress”, as the valuations are often needed for divorce proceedings or retirement planning.
The Teachers' Pension Scheme (TPS), administered by Capita Pension Solutions on behalf of the Department for Education, has reportedly been subject to significant delays in processing Cash Equivalent Transfer Values (CETV) requests.
A CETV is needed to determine the value of a pension pot. Therefore, without the valuation, it is “almost impossible” to reach a financial settlement in divorce proceedings or effectively plan for retirement, said Leigh Day.
The DfE said in January that a total of 1,344 teachers were waiting for valuation from the TPS, while online reports suggested some have been waiting more than 12 months.
Leigh Day argue that the “ongoing failures” of Capita are in breach of its statutory obligations to members of the scheme.
They add that there may be a “discriminatory element” to the delays and that Capita and the Department for Education could be in breach of the European Convention on Human Rights, concerning:
- Women who are seeking a divorce and are potentially being trapped in abusive relationships.
- The particular impact on older pension scheme members who are more likely to make CETV requests.
- The timing of the CETV request.
Capita has managed the TPS for 27 years, but in October 2025 the contract will transfer to Tata Consultancy.
Lawyers claim this ongoing transition “raises concerns about accountability” - as it is feared Capita may lack the incentive to resolve CETV delays before its tenure ends.
Ryan Bradshaw, solicitor at Leigh Day said: “This backlog must be cleared immediately, and those affected deserve compensation for their financial losses and the stress endured. Without proper accountability and reform, this situation sets a dangerous precedent for how we value and treat our public servants.”
The law firm revealed that a pre-action protocol letter is being prepared and “to be sent imminently”.
In a statement published last week (20 March) on outstanding CETVs, Capita plc said: "For those members affected by 'Transitional Protection', the team need to carry out multiple calculations to provide you with your CETV. These calculations need to be carried out for both final salary and career average service as opposed to one calculation for non-impacted members.
"This is a new requirement of all public service pension schemes implementing the remedy, which meant a full range of guidance had to be prepared and agreed across all schemes. Unfortunately, preparing the guidance in accordance with the legislation, and existing scheme rules, takes a long time to agree for consistency and to ensure calculations don’t need to be revisited."
It continued: "Receiving the majority of the guidance has allowed us to process most of the cases. The last set of guidance we’re waiting on is for those members receiving their pension benefits and who have either not made their Transitional Protection remedy choice or had flexibilities.
"All the backlog cases, apart from those for certain retired members and those who haven’t retired but have flexibilities, have now received their CETV.
"We apologise for the inconvenience the delay has caused and want to assure you that the remaining cases remain a priority and we’re working as quickly as possible to clear."
The Department for Education has been approached for comment.
Lottie Winson
