More than 1,000 UK military veterans have been notified that they owe significant sums of money due to long-standing administrative errors in their pension payments. The Ministry of Defence (MoD) confirmed it is pursuing the recovery of these funds, which were incorrectly issued over several years.

The issues stem from various calculation errors, including incorrect National Insurance adjustments, Pension Sharing Orders, and Early Departure Payments. In one specific category, 335 veterans were overpaid a total of £5.1 million due to National Insurance calculation mistakes. While the government maintains a responsibility to recover taxpayer funds, the situation has caused financial distress for many retirees who were unaware of the errors.

Ray Lawton, a 70-year-old veteran, reported that his monthly pension was reduced from £550 to £365 after he was informed of an £8,000 debt. Other veterans, such as Andrew Thorburn, have been told they owe sums exceeding £26,000, leading to substantial monthly income cuts. Some individuals have even been notified of six-figure debts.

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The pension scheme is administered by the company Equiniti on behalf of the MoD. While Equiniti acknowledged the distress caused to pensioners, it stated that it does not make the decision to recoup funds. Sopra Steria, which took over the pension contract in 2023, noted that the errors originated more than a decade before they assumed responsibility.

The MoD stated it is handling cases individually and aims to act in a "sensitive and proportionate way." However, former defence secretary Penny Mordaunt has argued that there is a "compelling case" for the debts to be waived, suggesting that the government should assess whether recouping the money is financially sensible given the circumstances. The Forces Pension Society is currently advising affected veterans to verify their notices and utilize formal complaint procedures.

Source: BBC News