Overpayment 1

United Kingdom
07/03/2000
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Reference: J00112

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.





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