Government corrects pension overpayments affecting 2,937 civil servants
Portugal's Prime Minister Luís Montenegro told parliament on Friday that 2,937 pensioners received payments above the legal limit due to a calculation error, and must return the excess — but rejected opposition claims that the correction amounts to a cut.
What went wrong at Caixa Geral de Aposentações
The Caixa Geral de Aposentações (CGA), the pension fund for Portugal's civil servants, detected a technical failure in how it processed new retirements between May and August 2026. The system counted the full length of contributors' careers when calculating pension formation rates, instead of limiting the count to the 40 calendar years needed for a full career.
The result: pensions were set higher than the law allows under the legal framework in force since 2005. CGA will begin notifying affected pensioners this month.
The profile of those affected
According to the government, the error hit pensioners with average monthly pensions of €2,475.64 — well above the typical Portuguese retirement income. The group includes teachers and other civil servants with long contribution histories, who retired after more than four decades of service.
The correction means an average reduction of €93.31 gross per month. In some cases, the decrease runs to several hundred euros.
How repayment works
Pensioners have three options to return the amounts paid in excess during the four-month period:
• Pay voluntarily via a Documento Único de Pagamento (DUP) sent by CGA, within 30 days of receiving the notice.
• Allow CGA to deduct the debt from future monthly pension payments, with the deduction capped at 30% of the net monthly pension.
• Request installment payments stretching to December 2027, provided each monthly installment is at least 5% of the total owed.
The Minister of Labour, Solidarity and Social Security, Maria do Rosário Palma Ramalho, confirmed the overpayments must be repaid.
Political clash in parliament
During the fortnightly debate, Chega leader André Ventura accused the government of cutting pensions and demanded to know why thousands of pensioners were being asked to return money. He cited the 20% poverty rate among over-65s in Portugal.
Montenegro rejected the charge as "manifestly false," saying: "The government's decision is not to cut anything, but to apply the law and a sacred principle in democracy — he who pays too much must return what he received too much."
The prime minister stressed that the error originated more than 15 years ago in registration data and did not stem from current government policy. He added that the state would ensure repayment conditions that do not harm pensioners' household budgets.
The Left Bloc (BE) also criticised the government over the issue, accusing it of imposing pension cuts — a charge Montenegro dismissed as "politiquice."
What this means for residents
For those affected, the correction means a lower monthly income going forward and an obligation to repay roughly four months of excess payments. The installment option to December 2027 and the 30% cap on monthly deductions are designed to ease the impact.
Pensioners who believe they may be affected should watch for official correspondence from CGA this October. The government has emphasised that only those whose pensions were calculated incorrectly need to act.
