Screw up on Mil Pensions - Over Payments

Discussion in 'Army Pay, Claims & JPA' started by in_the_cheapseats, Dec 15, 2008.

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  1. in_the_cheapseats

    in_the_cheapseats LE Moderator

    Just had a piece on BBC News 24 commenting on the fact that a large number (think I heard 100000) public pensions from the NHS and Army (may just be the BBC but the commentator said Army specifically) are being overpaid and monies are going to be recovered.

    Can't find a link yet.

    Anyone in BAFF or the wider audience know about anything about this?

    Sounds like a prize fcuk up :(
     
  2. in_the_cheapseats

    in_the_cheapseats LE Moderator

    Thanks for the link.

    Joy.

    Anyone "been informed" yet how much their pension is going to be reduced to next year?
     
  3. can they legally do that?
     
  4. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes

    From the BBC Report.


    Quite the most disingenuous statement made in this whole affair. Good news! You won't have to pay it back......Bad news! We're cutting your future payments.

    I wonder in which universe this isn't 'money being repaid'? Darling should be skewered for that particular bit of spin.


    Yes, I'm afraid they can.
     
  5. They have overpaid but they are not going to claw back any of the overpaid amount. That is fair because it is they who inform us what we are getting.
    Naturally the amount paid will have to revert to the correct amount. Just because a mistake was once made shouldn't entitle you to a lifetime of overpayment. If an underpayment has been made you wouldn't be complaining about being paid the correct (higher) amount would you?
     
  6. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes

    Markintime, I'm reading it as your future payments will be reduced to pay for it.

    It won't drop to the correct amount. It'll be lower to reconcile the overpayment.
     
  7. I hope not. I await further analysis.

    Edited to add: If the overpayment concerned Army alone they might try to do that but since it also involves their pet NHS I doubt it. The NHS is far too litigious and the resultant headlines about stealing from the angels would be devastating!
     
  8. Does this mean the pension calculator is wrong?
     
  9. The story on Radio 4 ended with the advice that the Cabinet Office would issue a statement tomorrow.

    Best to wait for that...

    Litotes
     
  10. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes




    If they adhere to standard industry practice then it'll be clawed back whether they're NHS or Mil.

    Now for the bit that might be balls since I have no knowledge of the Armed Forces pension scheme (I'm TA).

    In the industry if it's an unsecured pension, the Government allow you a certain amount of income (the GAD allowance) determined by age and sex and value of fund and if more than this is paid it's an overpayment and must be clawed back or it counts as an unauthorised payment by HMRC and could result in a tax liability for the recipient and /or a penalty for the administrators of the scheme.

    Now, if as I suspect, it's more like an annuity arrangement, then if it was worked out on the wrong basis then it is equally repayable.

    As you say though, it'll be interesting to see what way the political wind blows.
     
  11. When I got divorced of course my pension payments were taken into account when the Finacial settlement was made. I wonder if there will be an adjustment to what my ex wife was awarded!!!!
     
  12. http://www.timesonline.co.uk/tol/news/politics/article5349141.ece

    Tens of thousands of former public-sector employees face a cut in their income after it emerged that overpayments worth millions of pounds had been made to their pensions.

    Retired NHS staff and armed services personnel may have been overpaid for decades by the company Xafinity, which administers about 5 per cent of Britain’s two million public-sector pensions.

    Those affected are not expected to be asked to pay the money back but their income will be reduced to the correct level from April.

    Vince Cable, the Liberal Democrats’ treasury spokesman, made the disclosures in the House of Commons yesterday – a move which angered the Government, which had been preparing to make a statement on the overpayments today.

    Related Links
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    Public sector pensions will cost £1 trillion
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    There is already growing concern over the cost of the generous packages enjoyed by 5.2 million state employees, which critics say represents a financial timebomb.

    Matthew Elliott, of the Taxpayers’ Alliance, said after Mr Cable’s revelations: “A staggering amount has been wasted in this fiasco.

    “Public-sector pensions have long been a black hole for public money, but to learn that already gold-plated packages have cost the man on the street even more due to incompetent administration is a disgrace.”

    In the Commons, Mr Cable asked Alistair Darling how many people were involved, how much money was involved and what steps would be taken to retrieve the overpayments, “which I understand in some cases go back decades and are potentially enormous”. Mr Cable added: “I hope none of us can face the possibility of large numbers of ex-servicemen suddenly being faced with bailiffs turning up and asking them to repay overpayments.”The Chancellor replied: “It does need to be put right from next year. There will be a statement tomorrow from the Cabinet Office.”

    Mr Cable’s disclosure of the problem provoked government insiders to accuse him of breaking an informal agreement for the sake of political expediency.
     
  13. LOL !!
     
  14. From the link " Matthew Elliott, of the Taxpayers’ Alliance, said after Mr Cable’s revelations: “A staggering amount has been wasted in this fiasco. Public-sector pensions have long been a black hole for public money, but to learn that already gold-plated packages have cost the man on the street even more due to incompetent administration is a disgrace.”

    I was not aware that I had such a pension. Does this mean I am not involved in the adjustment?

    On a tangent, I like the bit where people did not like the LimpDumbs jumping the gun. I thought that whistle-blowing MPs were wonderful things and enjoyed all controls?