Millions of retirees have been receiving the wrong pension for decades because of “truly mind-blowing” IT errors dating back to the 1990s, according to a new report.
The problem is linked to pensioners not getting the correct level of Graduated Retirement Benefit (GRB).
This is an additional benefit, designed to top up your state pension, for people who paid “graduated contributions” on top of national insurance contributions between 1961 and 1975.
The amount of GRB you could be entitled to when you reach state pension age will be based on how much you paid in “graduated contributions”.
The BBC says the issue with retirees not receiving the correct uprate of GRB is down to a problem with the Pension Strategy Computer System.
Do you think you've been underpaid the state pension? Let us know: mirror.money.saving@mirror.co.uk
Sir Steve Webb, who served as pensions minster between 2010 and 2015, told the broadcaster that he had never been made aware of the issue.
"The scale of these errors is truly mind-blowing," he said.
"Although the absolute size of the errors is typically small, the number of people potentially affected is huge.”
Officials from the Department for Work and Pensions (DWP) confirmed that the problem was deemed "too complicated to fix" back in 2002.
In a new statement today, the Government said it is investigating "possible remedies".
A DWP spokesperson said: "A decision was made in 2002 not to make changes or corrections given the system's complexity and minimal impact on individuals, until a new computer system was introduced.
“The Department is assessing the scale of this issue and investigating potential remedies.”
The vast majority of people were wrongly paid to the tune of 1p or 2p per week, and all the mistakes are below 10p.
Official analysis published by the DWP last month shows it underpaid state pensioners £540million in total, but also overpaid £110million.
Normally, the DWP will spot the problem and pay you what you are owed as a lump sum.
If you think you have been underpaid and the DWP has not contacted you or corrected the issue, you can contact them to enquire.
If you think you have not had the correct state pension amount, you should contact the Pensions Service arm of the DWP directly.
You can call on 0800 731 0469, but be aware that the lines are only open from 9.30am to 3.30pm Monday to Friday.
In more retirement news, Brits have been urged to check their eligibility for pension credit over fears that 850,000 people are missing out.
