NI pensions cut as government admits to overpayments

The government has announced that more than 2,000 former public sector workers in Northern Ireland will have their pensions cut in order to make up for past overpayments.

It is likely that the move will have an impact on inheritance planning for many people heading towards or currently in retirement.

According to an official statement, "incorrect indexation" of pensions starting from 1978 and carrying on until this year have led to workers being overpaid by an average of £1,300, or £3.70 a month.

And while the 2,200 workers within Northern Ireland believed to be affected by the inaccuracies will not be required to pay such an amount back, they may see their public sector pensions reduced from the start of April 2009.

Among those likely to be affected by the announcement are retired NHS workers, teachers, civil servants and armed forces personnel.

Commenting on the news, a spokesman for Help the Aged welcomed the fact that pensioners were not being asked to pay "for a mistake that wasn't theirs", the BBC has reported, while it is estimated that as many as 95,000 retirees across the UK could have unwittingly received pensions overpayments over the past three decades.
Contact us for legal advice