MyCSP paid Cabinet Office £605,000 for pension payment errors in 2019/20

Civil Service pension scheme administrator, MyCSP, paid £605,000 to the Cabinet Office in lieu of erroneous overpayments in the 2019/20 financial year, according to Conservative MP and Cabinet Office Parliamentary Secretary, Julia Lopez.

Responding to a question from Labour MP Grahame Morris, Lopez explained that MyCSP and the Cabinet Office had an agreement whereby the Cabinet Office is refunded for overpayments arising from a MyCSP error.

In response to a separate question from Morris, Lopez also informed the Commons £20,610 had been paid in compensation awards through the internal dispute resolution process to pensioners affected by overpayments identified during an internal controls framework review (IFCR).

She explained that in most situations, overpayments that are not recovered by the scheme would be considered unauthorised payments, which would potentially be subject to tax charges of up to 55 per cent.

On this occasion, Morris had asked: “With reference to overpaid pensions by civil service pension scheme administrator MyCSP in cases identified by the ICFR, how much has been paid in compensation awards to affected pensioners through internal dispute resolution to date?”

Lopez commented: “Any potential recovery is carefully considered, including the cost effectiveness of doing so (e.g. the relative costs of recovering very small amounts). Members have the opportunity to submit evidence should they believe that either recovery should not take place or where they might require a longer repayment plan.

“Members overpaid and identified by the ICFR were treated in the same way as other members where overpayments had occurred as part of business as usual.”

She added that there was no separate record for the total value of pension underpayments under the ICFR but noted that these formed the majority of the rectifications needed.

Lopez commented: “Members received topped up pensions accordingly as part of business as usual activities, rather than as part of a separate project to recover any amounts due.”

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