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UK MoD cuts military pensions after overpayments due to errors
The Ministry of Defence said more than 1,000 retired service personnel are being pursued for debts tied to incorrect National Insurance calculations, with £304,000 repaid so far of £5.1m owed.
The UK Ministry of Defence has slashed the pensions of hundreds of former military personnel after letters demanded they repay thousands of pounds, following clerical errors in how pension overpayments were calculated, according to BBC Business. The MoD confirmed that more than 1,000 retired service personnel are being pursued for debts, and it said 335 veterans were overpaid a total of £5.1 million due to incorrect National Insurance calculations. Of that amount, £304,000 has been paid back, and the MoD said a third of the affected veterans have settled in full while 52 have agreed repayment plans. The BBC reported that one veteran, Ray Lawton, 70, was told in July he owed £8,000 after six years of overpayments, and shortly afterward his monthly military pension fell from £550 to £365. The letters were sent from Equiniti, which administers the pension scheme on behalf of the MoD. The MoD said it is investigating issues on a case-by-case basis and cited errors involving National Insurance adjustments, Pension Sharing Orders, Early Departure Payments, and State Pension Age. A MoD spokesperson told the BBC that where payments were made in genuine error the department has a responsibility to recover taxpayer funds in a sensitive and proportionate way.