Around 21,000 retired police officers will receive extra pension payments after the Government mismanaged its payout to a Scottish firefighter, a Home Office minister has announced.
Mike Penning said the Home Office will pay out an extra £360 million to the officers and others affected by the Government's maladministration in calculating firefighter Billy Milne's lump sum pension payment.
The extra money comes after the Pensions Ombudsman ruled in May that the Government had underpaid Mr Milne after failing to update rules on how his payout was calculated.
Mr Penning said the principles of this ruling will now be applied to other affected individuals across Britain, which includes around 21,000 retired police officers in England and Wales.
In a written ministerial statement, the Conservative minister said: "In May 2015, the Pensions Ombudsman issued his Final Determination in a case brought by a retired Scottish firefighter against the Government Actuary's Department (GAD).
"This found that GAD was guilty of maladministration in failing to update the factors used in the calculation of the firefighter's lump sum pension payment.
"The Government determined that the principles of this ruling should be applied to other affected individuals across the UK, including around 21,000 retired police officers in England and Wales.
"Parliamentary approval for additional capital of £360 million will be sought in a Supplementary Estimate for the Home Office. Pending that approval, urgent expenditure estimated at £360 million will be met by repayable cash advances from the Contingencies Fund."
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