Public sector pensioners out of pocket

Public sector pensions have been underpaid to the tune of almost £100m.

Former teachers, civil servants, NHS workers, military and judicial staff are facing a pensions shortfall because of a failure, dating back to 1978, to register national insurance data. Previous national insurance inconsistencies had resulted only in overpayments.

While the government is aware of the situation, and letters have been issued to inform claimants that they will be paid the correct amount from next month, pensioners have not been told if they can claim back the money owed. In some cases this may be as much as £200 a year.

However, according to a Cabinet Office spokesperson, “In cases where pensions are underpaid, the government’s normal practice is to put right any underpayments.”

Last December, Cabinet Office minister Liam Byrne admitted that more than 100,000 public sector workers had been overpaid by up to £140m.

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