Pension error - any recourse?

neelpeel

I just heard from my dad that he had a letter from the company that runs his pension from his work. It said that he had been overpayed about £900.
He was forced to retire about 8 years ago and has been claiming the pension since so the error has been running this long (through no fault of his own).

His pension is not a lot and this £900 he has obviously not put away for and connot afford. What options does he have?

Could he agree to pay it off at say £5 per month? or does he need to pay it at all given that the pension company can be shown to be at fault?
Any advice would be appreciated.

dunstonh

What options does he have?

Either to repay it in one go or agree a repayment plan over 12-24 months.

Could he agree to pay it off at say £5 per month?

highly unlikely that they will accept a figure that low. Typically its up to 2 years. So, you are looking closer to £40.

or does he need to pay it at all given that the pension company can be shown to be at fault?

You are not entitled to keep money you have received in error apart from a few circumstances (like pointing out the error and being told repeatedly that its not an error and yours to spend).

The reduction in pension income can be offset with pension credits if those apply.

peterg1965

Complain if you think you have a genuine grievance. Write to one of the Saturday/Sunday papers who have a financial section. like the Daily Telegraph, and enlist there support to help fight your corner. It sounds like a petty issue as far as the Pension provider is concerned. Don't be bullied into paying without looking at other options.

Peechy_2

I would certainly complain. But check the Pensions Advisory website's "Dealing with Mistakes & Overpayments" page first.

Apologies - first post so I can't link yet

MikeJones_2

Hi neelpeel,

It would not be be unusual to expect to agree a repayment period LESS than the period in which the error occured if this caused financial hardship.

Other circumstances, would also be taken into account and I would highly recommend your dad seeks help from TPAS as already suggested by other posters. It's FREE and your dad will receive help from pension experts who will mediate on his behalf.

Simply get your dad to pick up the phone or write a very simple letter to TPAS outlining his complaint. TPAS will do the rest.

Hope that helps.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.