Do I have to pay back pension overpayments?

If you think your pension provider might be paying you more than they should, always report it. These are known as overpaid pension payments.

The sooner you identify a mistake and let the pension scheme know, the more options you normally have to fix the mistake.

Even though the mistake isn’t your fault, you usually won’t be able to keep the overpayments. 

Instead, your pension provider will tell you how much you need to pay back. You might not need to repay some overpayments if they were made more than six years before the mistake was discovered.

Typically, your future pension payments will be lowered until the amount is repaid, but you might be able to agree a different way. 

You can usually repay over the same period it was paid to you. For example, if you’ve been overpaid for two years, you should be allowed two years to repay. 

If you’re worried that you’ll struggle with the repayments, see our guide Help if you’re struggling with debt for steps you can take. 

If you’re unhappy with the amount you’ve been asked to pay back, or to complain about the mistake happening in the first place, follow these steps.

Tell your pension provider why you’re unhappy and explain what you’d like them to do to put things right.

If you’re asking for compensation, include as much information as you can on why you feel it’s fair. For example, if you’ve: 

• lost money due to the mistake 

• reported the issue as soon as you noticed it 

• felt stressed or upset due to the error

• had to spend lots of time trying to resolve things.

It’s best to complain in writing so you can keep copies of everything.

Your pension provider will investigate your complaint and let you know what they propose to do. 

If you’re happy with this, you can accept the offer and close your complaint. If not, you can take your complaint further. 

If you can’t agree on a fair resolution or your pension provider hasn’t replied within eight weeks of contacting them, you can make a complaint to The Pensions OmbudsmanOpens in a new window

The service is free and independent, and they’ll look at the facts without taking sides. 

You can complain about:

• a pension scheme set up by you or your employer 

• the Pension Protection Fund

• the Financial Assistance Scheme.