TechTarget

Pensioners robbed by IT

The Government's failure to fix continuing computer problems has cost some 280,000 people with private pensions almost £40...

The Government's failure to fix continuing computer problems has cost some 280,000 people with private pensions almost £40 million worth of investment income, the Tories claimed recently.

Since April 1997, 330,000 people have been entitled to a rebate on their National Insurance contributions after...

contracting out of the State Earnings Related Pension Scheme (SERPS) and entering into a private money-purchase pension scheme instead.

However, a long-running fault with the Department of Social Security's NIRS 2 computer system has meant that approximately 85 per cent of the payments - totalling £140 million - are still outstanding.

Instead of paying the refunds into people's private pension schemes however - thereby adding to their capital and increasing interest earned off their investments - the Treasury has kept the cash, paying interest at six per cent a year.

David Willetts MP, shadow secretary for social security, criticised the government for its "incompetence" and argued that by keeping the rebate money and offering a low investment return, it had caused over £36 million of investment to be "lost forever".

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close