Abatement of pension

brian_collins

I was re-employed by the Civil Service following redundancy. On starting with the new employer I declared all the necessary information including an existing Civil service pension of £400 per month. After being in post for nearly 15 months the pension administrator MyCSP have realised (and admitted liability) that they have wrongly assessed my continued entitlement to my pension, which should have been abated on my return to work. Subsequently they have presented me with an over-payment of several thousands of pounds and are now asking for full repayment due to their error ie:maladministration, where I cannot be better off in my current position than I was in my last. Had they done their re-engagement correctly then I would have had the opportunity to have taken a part-time post to allow me to keep my pension or look for employment outside of the Civil Service where abatement does not exist. Subsequently to regain my pension, earned over 40 years, I have now reduced my working week and salary to allow for the pension to be re-instated. They as a pension service have taken no moral responsibility for their error and continue to pursue for this money which I have had and spent in good faith on normal living costs. I have contacted the Pension advice service and Ombudsman (plus my own MP, chocolate fireguard) but they continue to threaten for an error of their doing and not mine. Desperate for help, but has any one else had the misfortune of dealing with MyCSP and abatement in particular. MyCSP say they are pursuing the payment to care for their members interests and well-being, but am I not also entitled to the same consideration having done no wrong. As you can imagine this worry has brought great distress to my family and I....trying to reason with a monster that is MyCSP.f

Dox

Presumably you have been through the Internal Dispute Resolution Procedure (normally a pre-requisite before the Pensions Ombudsman can take the case)?

This answer won't help your immediate (and entirely understandable) anger/anxiety/frustration, but there really is not much you can do pending the outcome of the Pension Ombudsman's determination. If (as seems likely from what you say) you can argue something known as a 'change of position' defence to repaying the money then it is unlikely they will be able to claim the whole amount, and possibly none of it. That will only succeed if you genuinely did not know, and could not reasonably have known, that your pension should have been abated when you went back to work.

Nobody here can give you any helpful guidance, I'm afraid, although that probably won't deter a few hardy souls from trying - it really is one for the Ombudsman.

hugheskevi

Given this is a dispute, it may be beneficial to do some brief reading to fully understand the roles and responsibilities of your employer when you were re-employed and those of the scheme administrator, MyCSP. Section 4.3 of this link sets out the employer responsibilities. It is worth identifying exactly which entity failed to take the action(s) for which they were responsible.

Note section 4.3.9 in particular, as it relates to Dox's comment "That will only succeed if you genuinely did not know, and could not reasonably have known, that your pension should have been abated when you went back to work."

Section 4.3.9: People who retired or left with a compensation payment/pension were told, as part of their pension notification that, if they become re-employed in employment covered by the CSP arrangements, they must tell the new employer about their previous service because of possible abatement. They are also responsible for telling the Scheme Administrator that they are taking up the new employment. However, you [the employer] have a responsibility to notify the member about possible abatement where they tell you they are receiving a pension and you have the responsibility to tell the Scheme Administrator that the pensioner has started work with you. The Joiner Tool will prompt you to take abatement action, where appropriate.

The main abatement publication MyCSP may say you should have been familiar with is at this link. It is worth reading this along with the literature you received with your exit payment and upon rejoining, as this will help have prepare your explanation as to why you weren't aware your pension should have been abated.

The complaints process has 2 stages - internal dispute process stage 1 in which the scheme administrator reviews the case and the internal dispute process stage 2 in which the scheme manager reviews the case. If you remain unhappy after stage 2 the issue can go to the Pension Ombudsman.You need to ensure that MyCSP have considered the complaint under the internal dispute process, and not just as an issue you have raised. The complaints process is at this link.

OldBeanz

Don't worry. They have been after money off me for 2 years and still have not answered many of the issues I have raised as they have such a high turn over in staff and as you have no doubt realised are absolutely useless (polite term here). I am threatening to sue them which put them back in their box again.
If push ever does come to shove then repay at £5pcm then let them try and sue you for the rest.

brian_collins

thank you for your support....I have found MyCSP to be useless at best and care nothing for it;s members they are supposed to care for. They have admitted the fault ie:did not action a CSP 13 form correctly on time, until 16 months in to my new employment.. As a gesture I did offer a payment of £1000, but this was flatly refused on the basis they are caring for their members interests and pensions....though am I not a member also, with whom they have placed a several thousand debt on, through their error. If nothing else this forum I joined only yesterday has given me some moral support, being in a position with the monster that is MyCSP as others seem to have witnessed also. I am determined not to be a scapegoat for their failings and would appreciate any further support others may offer.

Marcon

brian_collins wrote: »

I have contacted the Pension advice service and Ombudsman (plus my own MP, chocolate fireguard) but they continue to threaten for an error of their doing and not mine. Desperate for help, but has any one else had the misfortune of dealing with MyCSP and abatement in particular.

Completely understand your distress, but this forum isn't the best place for help. You've already found the place that is: TPAS (and if necessary on to the Pensions Ombudsman - who will be the ultimate arbiter). Have you actually completed the Internal Dispute procedure, or indeed actually started it? If not, TPAS can help at any stage, even if the Ombudsman normally can't until you've exhausted a scheme's internal complaints procedure.

xylophone

Did you know that your pension should have been abated and fail to remind the administrator/your employer when the necessary action was not taken?

hugheskevi

this was flatly refused on the basis they are caring for their members interests and pensions

To be more precise. they are a private company administering a pension scheme which has rules set out in legislation and funded by the Exchequer.

As scheme administrator they have an obligation to pay members the pension to which they are entitled to under legislation, and to attempt to reclaim monies according to whatever recovery agreements and monetary thresholds they have in place with the scheme manager.

It is just the application of standard procedures for their business, nothing to do with caring about members (although such platitudes might be part of standard lines).

though am I not a member also, with whom they have placed a several thousand debt on, through their error.

Yes, and your argument will be that you reasonably considered yourself entitled to the monies paid, you have adjusted your lifestyle accordingly and repaying the money would cause hardship. The extent to which you can demonstrate this will determine what the legal outcome would be likely to be when defending against any action taken against you regarding repaying the over-payment.

There is also a practical consideration about the value-for-money in terms of pursuing the overpayment. If the overpayment is small, it won't be worth proceeding to court, given the associated legal fees, etc. However, an overpayment of several thousand may well offer value-for-money in terms of pursuing the debt, although this then comes back to how strong you think your case is that you could not have reasonably known you were being overpaid, that you have adjusted your lifetstyle accordingly and repaying the overpayment would cause you hardship.

brian_collins

In reply to your last thread...No I was not aware I was being overpaid any monies. I completed the necessary forms and declared this pension on my re-reinstatement to the Civil Service. Indeed had I been made aware fr Abatement I could have accepted the post as part-time, having my pension abated or I could have looked for work outside of the Civil Service where Abatement did not matter. A total error by these fools and I accepted the payment in good faith and at no time looked to take advantage of their failings.All advice is welcome, as in these occasions you do find yourself alone.....