A retired civil servant says he has been plunged into a financial nightmare and must return to work after being ordered to repay a staggering £25,000 in pension overpayments.
A Systemic Error With Personal Consequences
Derek Ritchie, aged 63, is one of hundreds of former civil servants who have been instructed to repay sums, some reaching six figures, due to erroneous payments. The mistakes were made by MyCSP, the firm appointed by the Cabinet Office to administer government pension schemes.
While an audit in 2019 identified many of the overpayments, Mr Ritchie's case was missed entirely. According to reports, his annual pension benefits incorrectly rose from £200 to £4,000. The former Ministry of Defence worker, who has used a false name, explained the profound impact this error has had on his life.
"Over the last 11 years, I've made decisions, expenditures and plans based on the figures I was given," he stated. "The mistake will cause me considerable hardship." He has undergone treatment for depression and anxiety since learning of the repayment demand and lamented, "I shall have to go back to work for years to pay this off."
A Retirement Plan in Ruins
Mr Ritchie's ordeal began when he accepted early retirement in 2014 under a voluntary redundancy scheme. Since 2017, he has worked part-time in mental health care and had planned to retire fully in 2027. He now feels his original choice was based on false information.
"I might have chosen to continue my career with the ministry or opt for the redundancy deal if I'd known my income would be lower," he said. His monthly income has already been cut by 13%, and he faces a potential further 15% reduction if he agrees to a repayment plan, leaving him feeling trapped.
Guidance exists for pension providers to write off debts in cases where claimants have spent the money and would face severe financial difficulty repaying. However, this appears not to have provided a solution in Mr Ritchie's case.
Official Response and a New Provider
A Cabinet Office spokesperson addressed the situation, stating: "We apply stringent guidelines on the recovery of overpayments, and work to ensure any money is recovered with flexibility and the least burden possible."
This controversy emerges as the £239 million pension scheme contract has this month transferred from MyCSP to Capita. The new provider has pledged to bring over 50 years of expertise, modern technology including AI, and a focus on innovation to the service, vowing to work with the Cabinet Office to build a more intuitive system for members.
For Derek Ritchie and others in his position, this change comes too late, as they grapple with the lasting consequences of a costly administrative failure.