PENSIONERS in Bolton could be losing out due to problems with the Benefits Agency's new computer system. And they are being urged to check the amount they receive to see if there are any irregularities. According to the North West Society of Chartered Accountants, up to a third of all new pensions paid since last July were wrongly estimated, with a knock-on effect on tax codes.

Diane Eatough, deputy president of the NWSCA, urged retired people to contact the Benefits Agency if they were in any doubt about the amount they were being paid.

"Anyone who is slightly out of the ordinary could be affected," she explained. "Particularly divorced women, those who contracted out of the state earnings-related scheme or who have worked abroad."

Incorrect pension calculations may result in the wrong tax code being issued, and the computer problem is not expected to be resolved before April."

A spokesman said there was "little point" in contacting the Agency however because they were aware of the problems caused by the installation of the new computer system.

Because of the problems with the computer, pension entitlements were being estimated, but he stressed that this only applied to people who have started to claim a pension since April 1998, "and not all of those are affected."

Exisiting claimants, those who were receiving a pension before April 1998, are not affected.

He went on: "One of the problems is that we can estimate reasonably accurately the base rate of pension, what is more difficult to estimate is the SERPS entitlement. We do accept that there will be people who are not getting their full entitlement, but this will be sorted out as soon as we get the computer working and clear the backlog."

Compensation

But he could not put a date on when the computer would be up and running.

He said that people who felt a grievance could claim compensation and details were in the leaflet GL22 'Tell Us Your Comments and Complaints".

Special payments could be made if people had suffered financial loss as a result of their pension being estimated.

However, to apply for compensation people must have suffered a delay of longer than eight months from the date they made their first claim. The amount of money owed must be at least £100, and the amount of compensation owed must be at least £10.

"We are sorry for the problems, and unfortunately there will be pensions that are underestimated. But there will be some that have been overestimated. We are doing the best we can and a task force has been set up. We are hoping that the computer will be working in the next few months." Earlier this month the Social Security Secretary, Alistair Darling, announced that benefits recipients whose payments had been disrupted because of computer problems would be compensated.

He confirmed that those on retirement pension who do not qualify under the existing rules and had experienced unreasonable delay would receive a flat rate payment of £10.

He said: " I have been concerned for some time about these delays and I am determined that any inconvenience suffered by those who would otherwise not get anything should be properly recognised. I will announce the details shortly."

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