The Ministry of Defence has confirmed that more than 1,000 retired military personnel have been notified of pension debts resulting from administrative errors. According to the MoD, 335 veterans were overpaid a combined £5.1 million due to incorrect National Insurance calculations. The department indicated it is also investigating separate errors related to Pension Sharing Orders, Early Departure Payments, and State Pension Age determinations.
Affected veterans have reported receiving letters from Equiniti, the company administering the pension scheme on behalf of the MoD, demanding repayment of substantial sums. Some individuals have been notified of six-figure debts. In response to these demands, pension payments for numerous veterans have been reduced significantly. For example, one veteran’s monthly pension was cut from £550 to £365 following a demand for £8,000, while another had his pension reduced by approximately £650 monthly after being told he owed £26,438.
Of the 335 veterans affected by National Insurance errors, approximately one-third have reportedly paid their debts in full, with 52 having arranged repayment plans. To date, £304,000 of the £5.1 million owed has been recovered. The Forces Pension Society indicated awareness of a limited number of veterans whose debts were cancelled after filing formal complaints.
The MoD stated it bears responsibility for recovering funds distributed in error and emphasized its commitment to doing so “in a sensitive and proportionate way.” However, affected veterans have questioned the fairness of the recovery process, with some calling for debts to be waived entirely. Former Conservative defence secretary Penny Mordaunt suggested that no financial assessment has been conducted to determine whether cost recovery is justified in individual cases. Equiniti acknowledged the concerns raised but stated that errors originated over a decade before its parent company Sopra Steria assumed the contract in 2023.
The Forces Pension Society is advising veterans receiving overpayment notices to verify authenticity, request detailed calculations, and pursue complaints through established dispute procedures.
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