Up to 93,000 retired teachers underpaid £35 million in pensions after Capita blunder

Tens of thousands of retired teachers have been underpaid £35 million in pensions after a blunder by outsourcing firm Capita.

As many as 93,000 teachers missed out on their full pensions after the the company failed to account for inflation in their calculations.

And some have yet to be paid properly a year on from the problem being spotted.

The firm, which administers teachers pensions for the Department for Education, made the error for four years in a row between 2011 and 2015, according to Schools Week.

The error was identified in August 2016, but a year on some retired teachers have still not been notified or been paid the right amount.

Capita told Schools Week some had been informed and paid the correct amount, but “the remainder will be notified as soon as the calculation has been completed.”

Capita administer pensions for the Department for Education

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According to documents released by the Department for Education, the miscalculation was down to an annual exercise to increase pensions in line with inflation failing to take place for some members.

The document says: “A formal rectification project is in progress to accurately identify all affected members, to contact any such members, take corrective actions on the impacted member records, and ensure member benefits (estimated at around £35 million) are accurately paid.”

A Capita spokesperson told Schools Week: “A number of members of the teachers’ pension scheme who retired between April 2011 and April 2015 may be due an additional payment.”

They said that they told affected members and sent them the missing funds “as swiftly as possible” after they were identified, and that steps had been put in place to make sure the problem doesn’t happen again.

The Mirror approached the Department for Education for comment, but they had not responded at the time of publication.

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