Armed Forces: Pensions
John Glen (Salisbury, Conservative)
To ask the Secretary of State for Defence how many Pension Credit members of the Armed Forces Pension Scheme have been affected by his Department's miscalculation of the level of pension to which they are entitled; and if he will estimate the cost to the public purse of maintaining the payments to such members at the current level.
Andrew Robathan (Parliamentary Under Secretary of State (Defence Personnel, Welfare and Veterans), Defence; South Leicestershire, Conservative)
There are 128 Pension Credit Members (PCMs) who have been paid a full pension from the effective award date when in fact they should either have been paid on an actuarially reduced basis, or not paid until age 60 or 65. There are also 427 PCMs whose pensions are deferred, but they have been incorrectly notified they can claim their full pension at age 55 without actuarial reduction.
The pensions currently in payment are more than the PCMs are entitled to and legally, there is no provision to continue to pay the pensions at the incorrect rates. The reduction to these pensions will be implemented from
Actuarial reduction is a reduction made to a member's final pension and lump sum (where applicable) to take account of the fact that pension/lump sum is being drawn earlier than the scheme pension age. The amount of the reduction applied depends on the age the member is when the pension becomes payable.