Capita Employee Pension Scheme

Capita employee pension scheme

Capita employee pension scheme is a retirement plan offered by Capita, a leading provider of business process management and outsourcing solutions. This scheme is designed to help employees save for their future and ensure financial security during retirement. In this article, we will explore the details of the Capita employee pension scheme, its benefits, and how it works.

1. Types of Pension Plans

Capita offers two types of pension plans to its employees: Defined Contribution (DC) and Defined Benefit (DB). In a DC plan, employees contribute a portion of their salary, and the employer may also make contributions. The accumulated funds are invested, and the final pension amount depends on the performance of the investments. In a DB plan, the employer guarantees a specific pension amount based on factors such as salary and length of service.

2. Contributions

In the Capita employee pension scheme, both the employee and the employer make contributions. The employee's contribution is deducted from their salary, while the employer's contribution is an additional benefit provided by the company. The contributions are invested in various funds to generate returns over time.

3. Investment Options

Employees can choose from a range of investment options for their pension contributions. These options include funds that invest in stocks, bonds, property, and cash. The choice of investment depends on the employee's risk appetite and financial goals. Capita provides guidance and resources to help employees make informed investment decisions.

4. Tax Benefits

Contributions made to the Capita employee pension scheme are eligible for tax relief. This means that the employee's contributions are made from pre-tax income, reducing their taxable income. Additionally, the investment returns within the pension scheme are also tax-free. However, withdrawals from the pension scheme may be subject to income tax.

5. Retirement Options

When an employee reaches retirement age, they have several options for accessing their pension funds. They can choose to take a lump sum payment, purchase an annuity for a regular income, or opt for a flexible drawdown arrangement where they can access their pension funds as and when needed. The choice of retirement option depends on the individual's financial situation and retirement goals.

6. Portability

If an employee leaves Capita before reaching retirement age, their pension funds can be transferred to another pension scheme or consolidated with their new employer's pension scheme. This ensures that the employee's retirement savings continue to grow and remain accessible.


1. Can I opt out of the Capita employee pension scheme?

Yes, employees have the option to opt out of the pension scheme. However, it is important to consider the long-term benefits of saving for retirement and the potential financial security it provides.

2. How much should I contribute to the pension scheme?

The amount you should contribute to the pension scheme depends on various factors such as your age, salary, and retirement goals. It is recommended to contribute as much as you can afford to maximize the benefits of the scheme.

3. Can I change my investment options?

Yes, employees can change their investment options at any time. It is advisable to review your investment strategy periodically to ensure it aligns with your financial goals and risk tolerance.

4. What happens to my pension if I die before retirement?

If you die before reaching retirement age, your pension funds can be passed on to your nominated beneficiaries. They will have the option to receive the funds as a lump sum payment, purchase an annuity, or transfer it to their own pension scheme.

5. Are there any fees associated with the pension scheme?

Yes, there may be fees associated with managing the pension scheme and investment funds. These fees are typically deducted from the investment returns and are disclosed to employees.

6. Can I access my pension funds before retirement?

In most cases, pension funds cannot be accessed before reaching the minimum retirement age. However, there may be exceptions for specific circumstances such as serious illness or financial hardship.

7. What happens if Capita goes bankrupt?

If Capita goes bankrupt, the pension scheme is protected by legislation and is separate from the company's assets. The Pension Protection Fund (PPF) ensures that employees' pension benefits are safeguarded.

8. How can I track the performance of my pension investments?

Capita provides regular updates and statements to employees, allowing them to track the performance of their pension investments. Additionally, employees can access online portals and resources to monitor their pension funds.


- Provides employees with a secure retirement plan

- Offers tax benefits and potential investment growth

- Allows employees to choose their investment options

- Provides flexibility in retirement options

- Portable and can be transferred to another pension scheme


- Start saving for retirement early to maximize the benefits of the pension scheme

- Review your investment strategy periodically to ensure it aligns with your goals

- Take advantage of the tax benefits by contributing the maximum allowed amount

- Seek professional advice if you are unsure about investment options or retirement planning


The Capita employee pension scheme offers employees a valuable opportunity to save for their retirement and ensure financial security in the future. With a choice of pension plans, investment options, and tax benefits, employees can tailor their pension contributions to their individual needs. The scheme provides flexibility in retirement options and portability, allowing employees to maintain their retirement savings even if they leave the company. It is important to take advantage of the scheme, contribute regularly, and review investment strategies to maximize the benefits and achieve long-term financial goals.


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