Civil Servants: Workplace Pensions
The question
To ask the Minister for the Cabinet Office, if he will set out if a Civil Service Pension Scheme recipient is liable for the repayment of overpayments, including where the the recipient has queried the payment with the scheme administrator, and is repeatedly advised by the scheme administrator that the level of the payment is correct.
Answered by Satvir Kaur
The government has a duty to recover overpaid public money to ensure the scheme remains fair and sustainable for all taxpayers. The scheme follows the HM Treasury guidance on “Managing Public Money” which requires the scheme, where possible, to recover any money that a member is not entitled to.
The Civil Service Pension Scheme pays out 732,000 pensions per month. Any potential recovery is carefully considered, including the cost effectiveness of doing so (e.g. the relative costs of recovering very small amounts). Members have the opportunity to submit evidence should they believe that either recovery should not take place or where they might require a longer repayment plan.
We recognise that being asked to repay funds can be stressful. To manage the impact on retired civil servants, the scheme administrator works individually with those affected to create manageable recovery plans. These plans focus on the member's specific ability to pay, often spreading repayments over a long period to ensure that no undue financial hardship is caused.
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