Mr Webb explains: "If the state pension is too high, a pensioner can find that their state pension is reduced once the new GMP figure is used.
"Likewise, a pensioner can find that their occupational pension is adjusted up or down, and in some cases schemes are asking for overpayments to be recovered."
Moreover, Mr Webb adds there is nothing to stop schemes from asking for overpayments to be recovered, though some schemes will waive them.
Try explaining this to the average pensioner. As Baroness Ros Altmann, former pensions minister, states: "Unfortunately, most people had no idea they were paying less NI than others with different pension arrangements.
"They just see a deduction for NI and assume that is what is required by the government for everyone."
simoney.kyriakou@ft.com
