Retired UK Civil Servant Ordered to Repay £25,000 After Pension Scheme Error
Derek Ritchie, a 63-year-old retired UK civil servant, has been ordered to repay £25,000 in overpaid pension benefits which date back to 2014. These overpayments, which have occurred for 11 years, can be repaid either by bank transfer or in instalments.
Ritchie was initially informed about the overpayments by MyCSP in March and apologized to, though he did not receive a full explanation. Three months later, he faced legal threats if repayments did not commence. The situation has caused him significant hardship, including needing treatment for depression and anxiety, and he may need to return to full-time work to cover the debt.
He is one of hundreds of civil servants who have been ordered to repay overpayments resulting from administrative errors. Some cases have involved repayments in six-figure sums. MyCSP, responsible for managing civil service pensions for the Cabinet Office, admitted in 2019 that it was attempting to recover £2.7 million from over 2,000 pensioners.
These errors were uncovered during a Cabinet Office-ordered review; however, the review initially failed to identify Ritchie's overpayments. Overpayments for him rose from roughly £200 annually to around £4,000. This week, Capita took over the scheme, stating it brings pensions expertise and is working with the Cabinet Office to improve service.
Government rules require that pension members be placed in the financial position they would have been in had the overpayment not occurred. Debt may be reduced if the member can demonstrate hardship. The Cabinet Office has expressed sympathy for those affected but maintains that there is a duty to recover public funds. It applies guidelines to recover overpayments flexibly and in a way that minimizes the burden on pensioners.
