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MilitaryLatest NewsEconomics, government & businessPay & benefitsPensions

Overpaid public sector pensioners will face cuts

by Louisa Peacock 16 Dec 2008
by Louisa Peacock 16 Dec 2008

Ministers are being called upon to explain how thousands of retired public sector workers face a cut in their pensions after a huge overpayments blunder.

Liberal Democrat Treasury spokseman Vince Cable raised the issue in the House of Commons yesterday after receiving a tip-off that Xafinity, which delivers about 5% of public sector pensions, has been overpaying some pensioners for years.

Ex-military personnel and NHS staff are among those caughtaffected, although the government has confirmed that repayments were “not going to happen”.

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Chancellor Alistair Darling said yesterday: “It will be necessary to adjust what’s paid for the future. It does need to be put right from next year.”

The Cabinet Office is expected to release a statement this morning.

Louisa Peacock

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