The member's pension was overpaid and the scheme tried to
recover the overpayment shortly after. The member argued she had
spent the money on a new car and washing machine and a visit to a
relative in South Africa.
The Ombudsman found that there was no maladministration in seeking
to recover the overpayment. Such recovery is a legal entitlement as
confirmed in Scottish Equitable v Derby. The member would
have to demonstrate that there was a causal link between the
overpayment and the expenditure. No such evidence was produced and
the Ombudsman found that whilst the member's expenditure might be a
reason for allowing her time to repay, the scheme was entitled to
recover the full amount of the overpayment.