Bereaved families face 'unjust' tax bills over delayed civil service pension payouts

Bereaved families affected by delays in civil service pension payouts may face tax charges on lump sum death benefits. Under HMRC rules, payments must be made within two years of a death being reported to remain tax-free. The Civil Service Pension scheme, managed by outsourcing firm Capita, has a backlog of over 120,000 cases, with 1,643 cases over 100 days old. Government and the Pensions Ombudsman acknowledge the delays, but standard complaints may take up to 18 months to resolve.