By Adam Morris
Pressure is intensifying on Scottish pension bosses to cancel repayment demands made to retired officers at the centre of a major public finances blunder.
Many cops across the UK who receive an ill health or injury on duty pension have had their settlements recalculated as part of a wider age discrimination row, with some being asked to repay thousands of pounds.
At the end of last year it emerged the Scottish Public Pensions Agency (SPPA) has already issued letters asking for money back.
However, 1919 has now learned of examples in England where similar repayments have been waived.
And the guidance which forces south of the border are working from explicitly states pension scheme managers should consider whether officers acted in “good faith” before demanding a refund.
Given the row centres around a decade-old pension scheme change, over which officers had little choice and was subsequently ruled unlawful, campaigners say that should be enough for authorities to drop the demands.
The SPPA said overpayments dating back more than five years would be written off, and that it was now “considering” more recent cases.
David Kennedy, general secretary of the Scottish Police Federation, said: “These officers were injured on duty or had to retire through ill health.
“They have absolutely acted in good faith – it wasn’t their mistake.
“Unless there are specific circumstances in which it cannot happen, we would ask that these repayments are written off.”
The row is the latest development within a wider problem facing pension authorities across the UK.
“They have absolutely acted in good faith – it wasn’t their mistake”
David Kennedy, SPF general secretary
In 2015, public servants including police officers, firefighters and judges were switched from the 1987 pension scheme to a Career Average Revalued Earnings (CARE) arrangement.
But following a campaign years later by judges, the switch was found to be unlawful in a ruling now known as the McCloud Remedy.
That means officers who retired between 2015 and 2022 must have their final pension settlement recalculated.
This in itself has caused a stir, as resettlements are taking longer than expected to resolve, with many waiting for an uplift of tens of thousands of pounds.
But for those who also receive pensions linked to injury on duty or illness, the recalculation involved means that chunk of their pension may in fact have been overpaid.
As such, the final settlement – in some cases – has triggered a repayment demand, often to retired officers who cannot work because of the physical and mental consequences of their policing career.
“This pensions crisis will clearly place immense strain on the public purse,” said Liam Kerr, justice spokesperson for the Scottish Conservatives.
“But the bottom line is this: these officers did nothing wrong, and should not be financially penalised for a mistake they didn’t make.
“Many of these brave men and women have made great sacrifices for our safety, and they should be treated accordingly.
“That’s the conclusion which appears to have been reached in parts of England, and the Scottish Government should consider doing the same.”
The position in England is further forward, providing a harbinger for Scottish campaigners, and authorities there appear to be considering a more lenient approach.
1919 understands there is at least one case in the West Midlands where a retired officer was initially told they owed money back to their police force, but now their scheme manager “does not wish to recover the overpayment of pension and lump sum that has arisen”.
And police sources in England have confirmed there are other instances where such repayments will either be waived or covered by the relevant police force.
The situation in England differs in that one body – the National Police Chiefs’ Council – sets guidance for all 45 forces, although it is up to each one to decide a final policy.
NPCC guidance – taken from the UK Government – states overpayments “should be pursued”, but must take “proper account of how far recipients have acted in good faith”.
In Scotland, the final decision lies with the SPPA – a Scottish Government quango.
Martin Gallagher, a retired officer who heads up the ‘Job’s Forgotten’ campaign group – set up to pressure authorities to pay pension entitlements in full and on time – added: “How could you say these officers have done anything other than act in good faith?
“The whole thing is absolutely staggering. We gave everything to policing, and some are still suffering physically and mentally because of it.”
An NPCC spokesperson said: “We provide guidance on pensions to forces across England and Wales to aid in consistency.
“However, each chief constable, as the scheme manager for their force, is responsible for their officer pensions and final decisions sit with them to manage.”
A spokesperson for the SPPA pointed out the “incorrect guidance” was issued by the UK Government and said work was ongoing on “recalculating the pensions of the members affected by the error”.
They said: “The SPPA will not seek to recover any overpayment dating back more than five years and is currently considering the position for overpayments within the last five years in line with the principles set out in the Scottish Public Finance Manual, which provides guidance on the proper handling of public funds.
“The SPPA is accountable to the Scottish Parliament for applying the manual’s rules correctly.
“In any circumstance in which the SPPA is seeking to recover overpayments and a retired member feels that overpayment recovery would cause them hardship, they can contact the SPPA to discuss alternative repayment options.”