Veterans Hit with Pension Repayment Demands

Hundreds of former service personnel are being asked to return thousands of pounds in overpaid pension money as a result of administrative errors they had no hand in.

The Forces Pension Society (FPS) has gone public with the issue, calling on Veterans UK and pension administrator Equiniti to shoulder the financial burden themselves rather than pursue those who served.

The problem – which first came to light following a Freedom of Information request by the FPS in 2024 – stems from errors in the calculation of Armed Forces pensions. Some veterans now face five-figure repayment demands. One case reported in the Mail on Sunday involved a former Royal Navy serviceman with 35 years' service facing a bill for £18,200.

FPS Chief Executive Major General Neil Marshall was direct about where responsibility should lie: "Errors in the complex calculations of hundreds of pensions were made, resulting in requests for repayments and reductions in pensions going forward. This is happening to many veterans in retirement whose life plans are settled and without the wherewithal to earn money to return overpayments. It seems to us that the requirement to refund the monies should lie with Veterans UK and Equiniti."

The FPS – an independent, not-for-profit organisation representing more than 60,000 serving personnel and veterans – is recommending anyone affected visit forcespensionsociety.org for guidance on how to respond to repayment demands.

Don't get caught out – know your pension

If this story has left you with questions about your own Armed Forces pension, you're not alone. Understanding what you're entitled to, and how to protect it, is exactly the kind of thing most veterans are never properly briefed on before they leave.

In Issue 1 of CIVVY, our finance expert Nick Onslow breaks down the Armed Forces pension in plain English. No jargon. Just straight talk on money, written by someone who knows the system. Get your copy here.