Army pension division error cost us thousands

Technophobe

I am seeking advice or help with an issue involving an error made by the Service Personnel and Veterans Agency Pension Division......
Two years ago my wife who was then 56 and I divorced and a court order awarded her 55% of my army pension.
The sharing order was agreed between us after consulting with the Pensions Division at the Service Personnel and Veterans Agency (SVPA).
We had delayed our divorce because under the rules prior to 2009 my wife was not able to draw her pension until she reached the age of 60. We were separated and she received half my pension by standing order from my bank. In 2009 the SVPA announced that the rules had changed and that pensions could be drawn from the age of 55 instead of 60. I contacted the SVPA and specifically asked the army pension division if there would be an actuary reduction if my wife drew her pension early. I have a communication from them which states that there would be no reduction. We then decided to start divorce proceedings. The pension sharing order was implemented 2 years ago and my wife received what was effectively 55% of my army pension. SPVA have recently contacted her to say that they had made a mistake when interpreting the rules and she will have an actuary reduction imposed on her pension and will now receive a pension 50% less than we anticipated. They have also said that she will not be expected to repay the overpayment as it was their mistake. Had we been correctly informed of the rules in 2009 we would not have pursued a pension sharing order for the army pension; we would have made alternative financial arrangements. My ex wife now stands to loose £3000 per year from her pension. Is there any legal course of action we can take to either revoke the pension sharing order or insist that the reduction is revoked and her full pension is re-instated.

molerat

Complaints procedure here http://www.mod.uk/NR/rdonlyres/00093635-3C15-475D-9402-09AA3EA6084A/0/20090731FinalproofoftheIDRPbookletMMP130.pdf

Pension sharing leaflet here http://www.mod.uk/NR/rdonlyres/80916E89-5CB5-4DC3-A0A8-51BCA75E2C5C/0/20050419UMMP131PensionBenefitsonDivorce.pdf

Page 8 1st para, the last sentence seems open to possible interpretation. Does it refer to the whole paragraph or just the last half ?

Go the complaints procedure way first as it will cost you nothing. The reduction cannot be revoked if it is correct but I should imagine the whole thing could be unwound in exceptional circumstances. It may be a job for a solicitor possibly a specialist in matrimonial and pensions.

Talley24

I understand there are over 120 people directly affected by the action that has been taken and my former wife and I are in the same boat as Technophobe. We have contacted our MPs requesting them to make representation to the Minister involved and are additionally looking to take legal action. Clearly, collective action is likely to be more effective than unitary and, if Technophobe could personally message me, we could discuss potential courses of action further.

oneofthe120

I have just opened the letter form SVPA and discovered I am one of the 120 whose pensions they want to reduce, I believe those of us affected by this proposed change need to present a coherent case and take united action against this so called error. I have set up an email account so those affected can contact me directly in order that we can do this. So please contact me at afpserror@gmail.com asap thank you.

oneofthe120

Talley24 wrote: »

I understand there are over 120 people directly affected by the action that has been taken and my former wife and I are in the same boat as Technophobe. We have contacted our MPs requesting them to make representation to the Minister involved and are additionally looking to take legal action. Clearly, collective action is likely to be more effective than unitary and, if Technophobe could personally message me, we could discuss potential courses of action further.

I am one of those affected by this so error and have a proposed reduction of £6000 pa I am willing to participate in any legal action necessary in order to resolve this matter; so would be grateful if you could please contact me directly at afpserror@gmail.com