We have received a number of enquiries regarding the interest that the MOD will pay if you have been underpaid pension benefits and are owed money as a result of your remedy election choice.
In cases where you are owed money, from the 1st day up until the 28th day after the Remediable Service Statement (RSS) is issued, interest is applied at the judgement rate of 8% simple interest. This is collected daily from the mid-point (that falls halfway through the period which begins from the date the benefits were first underpaid and ends 28 days after an RSS is issued) until the date of repayment.
From the 29th day after the RSS is issued, compound interest is applied at the National Savings and Investment (NS&I) Direct Saver rate, which compounds daily from the issue date of the RSS until the date of repayment. The NS&I Direct Saver current interest rate is 3.75% gross. The NS&I interest rates change periodically and you can find details of the up to date Direct Saver rate at Current interest rates for NS&I accounts.
You can find more information regarding interest on remedy payment adjustments in the ‘Your 2015 Remedy Explained’ booklet (October 2023) here.
