Pensions 'underpaid' through National Insurance error

09/03/2009

An administrative mistake could have led to thousands of pensioners who formerly worked in the public sector not being given enough of a retirement income, it has been claimed.

National Insurance data has not been correctly registered for over 30 years leaving some pensioners short by up to £200 per year, the Times reports.

In total, the shortfall for the NHS staff, teachers, civil servants and other public sector employees is thought to add up to around £100 million.

Speaking to the newspaper, Steve Webb, work and pensions spokesman for the Liberal Democrats, said: "This is a clear injustice suffered by large numbers of workers through no fault of their own, which must be remedied immediately, including back payments."

As yet, the government has yet to make a public statement about the mistake - though the Times confirmed that it was aware of the pensions shortfall.

In a separate statement last year, ministers confirmed that around 100,000 staff had been overpaid on their pensions.

The total sum of this mistake is thought to be £140 million - and some of those affected will face reduced pension incomes from the start of the new financial year in April.

However, the government has since confirmed that it will not try to get back the money it lost out on through overpayments in previous years.

Mr Webb added: "We need an urgent statement on the scale of the underpayments."

Tags; Income Worries and Debt, Retirement Money Problems,

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