The Head of Pension Administration, Yvonne Murphy, presented a report that informed Members of the introduction of an ‘Overpayment of Pensions Policy’ formalising the operational and decision-making processes in dealing with the overpayment of pensions.

Appendix 1 to the report contained the draft Overpayment of Pensions Policy.

The policy outlined the circumstances where the recovery of monies was pursued, along with the considerations as to the commercial viability of recovery, the reasons for write-off and actions undertaken to mitigate the loss to the taxpayer.

The policy confirmed that the Fund adopted the HM Revenue & Customs (HMRC) statutory “de minimums limit” of £250, which allowed for the non-recovery of a payment up to £250 gross made in error “because of circumstances that were beyond the control of the pension scheme making the payment”.

The Pension Board had considered the draft policy and, after making a number of revisions to the document, had deemed the policy (Appendix One) as suitable for presentation to Pensions Committee for its approval; on the basis it was equitable to scheme members, the scheme itself and the taxpayer.

Following discussion with Members it was agreed that paragraph 3.4 be amended to replace the £1000 limit for reporting to reference the minimum approval limit documented in the Wirral Council Constitution.

Resolved – That the draft ‘Overpayment of Pensions Policy’ which formalises the Fund’s current operational practice, including the application of HMRC’s statutory £250 “de minimums limit”, be approved subject to the amendment that the reporting limit for write off of irrecoverable debt within the policy be linked to the minimum approval limit documented in the Wirral Council Constitution.