Early retirement scheme "overpayment" Dept want it back

Begob · 12-11-2010 11:34AM #1

What would ye suggest on this issue.

Our late father who in his last years was unfortunately getting very absent minded/close to dementia, but still very independent and fiercely private was getting the early retirement pension.

It has come to light that he never informed the dept of his oap non contributory.
They wrote to him[in papers we found unopened] informing him that if he didn't they would cancel his ERS payment.
We've discovered they never cancelled it and he was paying tax,a lot of tax because he declared all his income via his p60,done by his late wife,our mum.

Now they want the "ERS overpayment" running into several thousands, back and are sending me demanding letters as "next of kin" once they found out he was dead [he's dead with a few years].They never sympathised.

His estate consists of just the remains of an ssia which would cover this and some savings.

What should we do? The dept made this mistake.He paid a lot of tax on account of it which apparently has past some sort of deadline to be claimed back...yet they still want the funds back.
For various family reasons and issues his estate has not been dealt with yet.

Has anyone ever had a similar experience with the Early retirement scheme ?

Tipp Man · 12-11-2010 11:57AM

How long ago did he pass away?

I think you need to get yourself a good solicitor

The_Conductor · 12-11-2010 12:09PM

OP - sorry to hear about your father.

There is a case to be made for having the demand reduced by the gross tax paid on the overpayment- but ultimately the overpayment resides with your father's estate, and it would be the duty of the executor of the estate to satisfy this demand from the proceeds of the estate.

You need to seek legal advice on this.

Begob · 12-11-2010 12:15PM

About 4 yrs ago and the mother about 6 yrs ago
He died intestate too further complicating matters.
Theres a family of 6 and most of them are raging about this.
Some of them have said they will sue the administrator for an entitlement if he/she doesn't work out what taxes were paid that shouldn't have been and deduct that from what is handed over to the dept.
The figure the dept want back a bit scarey I may aswell say,it's over 20k

The family solicitor has been given the paperwork alright but no admin has been agreed understandably.
The solicitor says they have no business writing to me as it's not my debt.

The_Conductor · 12-11-2010 12:20PM

Begob wrote: »

The solicitor says they have no business writing to me as it's not my debt.

The debt is not your debt- it is however associated by the Department with the farm (rightly or wrongly) and as a successor- in the absence of the executor clearing the debt, the debt stays associated with the holding.

Begob · 12-11-2010 12:33PM

Thanks smccarrick,
My first thoughts on that would be,that such a position by the department,should they go after me,is that it would be unconstitutional.
It's the first thing I discussed with the solicitor.
I had no control over or entitlement to my parents pensions or knowledge or control over any of their financial affairs.
They were very private people.

Given the families concerns,I'll advise going down the negotiation route and suggest payment minus the gross tax deductions made.

Early retirement scheme "overpayment" Dept want it back

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