Fri, 2 Jan 2009

Government tackles overpaid pensions

The Government has explained how it overpaid pensions for teachers, NHS staff, the armed forces and the Judicial and Civil Service.

They are estimated to have received around £3.70 a month too much.

A statement by Liam Byrne, minister for the Cabinet Office says ‘to enable the correct pension increases to be applied, pension scheme administrators need accurate Guaranteed Pension (GMP) information derived from the individual’s National Insurance contribution record.

‘Our investigations have revealed that in 95% of cases this information is correctly recorded. But, in some cases it is not.

‘In those cases schemes have paid the annual increase on the full pension each year instead of on an amount adjusted to reflect the GMP entitlement’.