Derek Ritchie, 63, is among hundreds of former civil servants ordered to repay up to six-figure sums after erroneous overpayments by MyCSP, appointed by the Cabinet Office to manage its pension schemes
The pensioner has been left ‘in a nightmare with no way out’(Image: Getty)
A former civil servant claims he is trapped in “a nightmare with no way out” after being told to return £25,000 in incorrectly paid pension benefits.
Derek Ritchie, 63, is among hundreds of ex-civil servants instructed to repay sums reaching six figures following mistaken overpayments by MyCSP, which the Cabinet Office appointed to administer its pension schemes.
Whilst many of these blunders were identified during a 2019 audit, Mr Ritchie’s overpayments escaped detection and his benefits increased from £200 annually to £4,000, according to The Guardian.
“Over the last 11 years, I’ve made decisions, expenditures and plans based on the figures I was given and the mistake will cause me considerable hardship,” the ex- Ministry of Defence (MoD) worker, who has undergone treatment for depression and anxiety since learning of the repayment demands, explained. “I shall have to go back to work for years to pay this off.”
The 63-year-old, who has been using a false name, revealed he was urged to accept early retirement when his MoD role became available for voluntary redundancy in 2014. He has been employed part-time in mental health care since 2017 and intended to retire completely in 2027.
“I might have chosen to continue my career with the ministry or opt for the redunancy deal available under the voluntary early release scheme if I’d known my income would be lower,” he stated. Pension providers have the ability to write off outstanding debts when claimants can demonstrate they’ve already spent the funds and would face severe financial difficulties attempting repayment, reports the Express.
However, with his monthly earnings already slashed by 13% and facing the possibility of an additional 15% reduction should he accept a repayment arrangement, Mr Ritchie claims he’s been trapped “in a nightmare with no way out”.
A Cabinet Office representative commented: “We apply stringent guidelines on the recovery of overpayments, and work to ensure any money is recovered with flexibility and the least burden possible.”
The £239million contracted pension scheme was handed over from MyCSP to Capita this month. The company claims it will deliver “over 50 years of pension expertise, modern technology including AI, a focus on innovation and a commitment to social value” and vowed to “work in partnership with the Cabinet Office to build a more intuitive service that meets the needs of members”.
