Royal Navy veteran Thomas Meadows discovered to his horror that he was in debt by the staggering sum of £18,200 when a letter arrived out of the blue last February.The 73-year-old recipient of a prestigious Meritorious Service Medal was dumbfounded to learn his Armed Forces pension had been overpaid for nine years due to an obscure accounting error.This had come about through no fault of his own, yet the pension scheme administrators that had blundered made it very clear he was on the hook to repay the huge sum.‘It was a great shock to receive the letter,’ said Mr Meadows, a former chief petty officer who served his country for 35 years. ‘It wasn’t even signed with a name, there was just a number. But when I called, it was answered by a young lady who couldn’t help at all.’Our investigations reveal there are hundreds of retired Armed Services members in the same situation. They have seen immediate cuts to their monthly pensions and face further reductions if they sign up to the repayment plans offered by the pension scheme.Mr Meadows was overpaid due to a ‘National Insurance adjustment’ error, although The Mail on Sunday has discovered this is one of myriad mistakes causing similar overpayments to veterans.It is a complicated calculation, which involves a reduction when someone reaches state pension age. In this case, after the reduction was made the pension scheme then incorrectly applied an inflation-linked increase for a second time. That caused the overpayments which then compounded over the years.This was detected in 2024, according to a freedom of information request to the Ministry of Defence, which was obtained by the Forces Pension Society in March this year. Thomas Meadows with his daughter Gemma and granddaughter Faye. He discovered to his horror that he was in debt by the staggering sum of £18,200 when a letter arrived out of the blue last FebruaryThe society is a not-for-profit organisation that acts as an independent pension watchdog for the military community. Chief executive Major General Neil Marshall said his organisation is aware of hundreds of overpayments – some in the thousands of pounds, some in tens of thousands and a few above £100,000.‘These arise from policy errors and miscalculations relating to pensions sharing on divorce, early departure payments, guaranteed minimum payments, guaranteed income payments and National Insurance adjustments,’ he said.‘When an overpayment is discovered, attempts will be made to recover the historic overpayment, at the same time as adjusting future payments downwards.‘This often happens to members in retirement, when their life plans have been made, their standard of living is set and they lack the wherewithal to earn money to return overpayments.’Mr Marshall feels the complaint process is unsatisfactory, with members who rightly doubt the overpayment figures and ask for detailed calculations not getting them – and simply being told the matter is being investigated.‘We recognise the principle of recovering public monies that have been overpaid,’ he said. ‘But we also think it wrong that the scheme administrator who has made the error should attempt to recover the money from members who have acted in good faith.’The Armed Forces pension scheme is run by three entities – Defence Business Service and Veterans UK are internal to the Ministry of Defence and in charge of operations, including pension entitlement decisions, while private sector company Equiniti makes payments to pensioners.Mr Marshall added: ‘It seems to us that the requirement to refund the public purse should lie with Veterans UK and Equiniti.’Mr Meadows lives with daughter Gemma and granddaughter Faye, who are together coming to terms with what a £18,200 financial liability will mean for their family.His pension has already been cut from around £1,150 a month at the start of this year to around £950, to adjust for the miscalculation.But he has not yet negotiated how he will return the overpayment, and is thinking about how he will absorb the impact. Mr Meadows has other income, including a pension inherited from his late wife and one from his job as a displays specialist at a garden centre, which he took after leaving the Royal Navy in 2002.‘As you can imagine, I am very upset by this error. I’ve made a complaint and not agreed to a repayment plan yet,’ he said.‘The reduction in my pension is a worry. I used to go clay target shooting but it’s quite expensive so I don’t do that so much any more. The cost of fuel has gone up too.’ Thomas Meadows in uniform during 35 years in the Armed Forces. After leaving the Royal Navy in 2002, he then took a job as a displays specialist at a garden centre, which provides him with a pensionRetired captain Nick Fletcher, who served in the Royal Navy for 36 years, received a letter the day after his 69th birthday in February asking him to repay £19,800 of his Armed Forces pension. He has lodged a complaint and asked for a full breakdown of his pension calculation, which he has not yet received. Mr Fletcher, who lives in Hampshire and chairs a charity on a voluntary basis, said his monthly pension has been cut by £600, and he faces a second cut of that size if he agrees to a three-year repayment plan.‘It’s a very unfair business and, frankly, a complete shambles,’ he said. ‘I know there are people in very difficult circumstances.’A Ministry of Defence spokesman said: ‘Where payments have been made in error, we have a responsibility to recover taxpayer funds and will always seek to do so in a sensitive and proportionate way. This includes... sensible repayment schedules. Through Veterans Services, we provide one-to-one support to veterans and their families facing challenges.’Equiniti said it ‘supports in the recovery of overpayments’ and ‘works to ensure that all members receive the correct information and appropriate support’.What fellow veteran victims can doThe Forces Pension Society says first verify your letter is legitimate, then follow up in writing to request further information. It suggests contacting your local MP for support, and explains how to complain in a step by-step guide on its website. Here is the link: forcespensionsociety.org/2026/03/equinti-overpayment-of-armed-forces-pension-letters. To make your complaint for pension ‘maladministration’, you first need to use the Internal Dispute Resolution Procedure (IDRP). You can then take it to the Pensions Ombudsman if necessary. The Government has information at gov.uk/ government/groups/veterans-welfare-service and its helpline is 0808 1914 218 (option 6). If you are affected, write to us at: money@mailonsunday.co.uk