Rosalind Connor comments in the FT on pension schemes’ handling of overpayments
Across the UK, tens of thousands of people could be in for similar shocks as pension schemes across the land complete a massive record-checking exercise, which is throwing up significant errors in pension records dating back four decades.
More than 10,000 retired members of the UK Civil Service are expected to receive letters advising of reductions to pension payments this year after the Civil Service Pension Scheme identified £22m of overpayments.
Rosalind Connor commented on how pension schemes are handling overpayments:
“Trustees can ask the member for the money back and can take action to recover the outstanding sums.”
Rosalind went on to explain that it is often possible to reduce future payments in order to recover the overpayment already provided, which tends to be easier to get the member on side.
“On occasion, when the change is very small, trustees may choose not to send out a correcting communication, but this is unusual.”
Read Rosalind’s comments in the FT
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