Hundreds of former members of the military have had their pensions slashed after receiving letters telling them to repay thousands of pounds because of a clerical error. The Ministry of Defence (MoD) confirmed to the BBC that more than 1000 retired service personnel are being pursued for debts. The majority, 335 veterans, were overpaid a total of £5.1m as a result of incorrect National Insurance calculations.
The Forces Pension Society said it is aware of a small number of veterans whose debts were wiped after raising a formal complaint. Ray Lawton, 70, was told in July he owed £8,000 following six years of overpayments. Days later, his monthly military pension was cut from £550 to £365.
"I haven't got £8,000 to pay out," said Lawton, who served 16 years in the Royal Artillery. "I've got a little bit put aside but nowhere near that much." The Portsmouth-based veteran told the BBC: "I've trusted the army all my life even when I left and I trusted my pension would be right. Then this letter comes and it's just blown it all out." Lawton's letter was sent from a company called Equiniti, which administers the pension scheme on behalf of the MoD.
It said an error in its system meant he had been overpaid for years. Lawton is one of many veterans from across the UK who contacted BBC Your Voice after receiving letters out of the blue seeking money they didn't know they owed. The Forces Pension Society, a not-for-profit which supports military retirees, said it is aware of many overpayment cases running into the tens of thousands of pounds.
A small number of veterans have been told they owe six-figure sums. The MoD confirmed errors relating to National Insurance adjustments, Pension Sharing Orders (PSO), Early Departure Payments (EDP) and State Pension Age (SPA). It says it is investigating issues on a case-by-case basis.
It added that of the 335 veterans affected by National Insurance errors, a third have paid off their debt in full and 52 have an agreed repayment plan in place. So far, of the £5.1m, £304,000 has been paid back. Veterans said they want more clarity about the debt and how it has been calculated.
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