Overpayment

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Mice224
Mice224 Posts: 1 Newbie
in Pensions, annuities & retirement planning
My uncle worked for the local council. He died 13 months ago after a short illness. They paid out the lump sum remaining on his policy once the estate was released from probate. This was all dealt with by the solicitor.


Today my mother received a letter from them stating they had over paid him a month's pension and she is now liable to pay it back. Her phone call to their office was fruitless and they were quite frankly insulting.


Where do we stand? Does it have to be paid? If they made an error and paid out the lump sum, shouldn't this have come to light then?


I hope someone can shine some light on this for us.

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    If what they say is true it's not your money. If you keep it it's theft.

    If you wrote a cheque for £35 when it was meant to be £25 wouldn't you want your £10 back?
    Free the dunston one next time too.
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    Where do we stand? Does it have to be paid? If they made an error and paid out the lump sum, shouldn't this have come to light then?

    Mistakes happen and there is no legal right to retain the money that was paid in error unless there was a reasonable expectation. A reasonable expectation would not apply here.

    So, yes it does have to be repaid. If the amount is large, they do have to agree to a reasonable repayment schedule (typically no more than 1-2 years given the timescale mentioned here).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Silvertabby
    Silvertabby Posts: 9,024 Forumite
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    Overissues of pension aren't recovered from the lump sum death grant because that is the property of the named beneficiary and the overissue isn't their debt. Nor is is recovered from the widow's pension, for tax reasons.

    As the estate was being handled by a solicitor, are you sure that the pension scheme didn't write to him/her to request a repayment of the overissue from the estate?

    I know it sounds harsh, but it's the responsibility of the LGPS to ensure that correct pension payments are made. After all, if there were still pension payments due to the estate, you would expect them to be made, wouldn't you?
  • xylophone
    xylophone Posts: 44,427 Forumite
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    over paid him a month's pension and she is now liable to pay it back.

    Is the pension paid in advance? This is what happens in our pension scheme.

    The pension payment was paid to the deceased's bank account after he had died (because it was already in the system)?

    If the above is the case, then the repayment is due from the deceased's estate, not from the death grant or the widow's pension.
  • atush
    atush Posts: 18,726 Forumite
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    kidmugsy wrote: »
    If what they say is true it's not your money. If you keep it it's theft.

    If you wrote a cheque for £35 when it was meant to be £25 wouldn't you want your £10 back?

    You would want it, but would not necessarily (w/o a contract) be entitled to it
  • Silvertabby
    Silvertabby Posts: 9,024 Forumite
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    xylophone wrote: »
    Is the pension paid in advance? This is what happens in our pension scheme.

    The pension payment was paid to the deceased's bank account after he had died (because it was already in the system)?

    If the above is the case, then the repayment is due from the deceased's estate, not from the death grant or the widow's pension.

    LGPS is monthly in arrears - but if the payroll has already been done before the notification, then it's not always possible to stop the payment.
  • hyubh
    hyubh Posts: 3,532 Forumite
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    Silvertabby wrote: »
    LGPS is monthly in arrears

    Not necessarily...

    http://www3.hants.gov.uk/pensions/lgps/pensioner-information/lgps-new-pensioner.htm
  • Silvertabby
    Silvertabby Posts: 9,024 Forumite
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    LGPS is monthly in arrears
    Originally posted by Silvertabby
    hyubh wrote: »
    Not necessarily...

    http://www3.hants.gov.uk/pensions/lgps/pensioner-information/lgps-new-pensioner.htm

    OK - usually in arrears.
  • Pun
    Pun Posts: 740 Forumite
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    Did he die within 5 years of starting to receive his pension from the council?
This discussion has been closed.
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