Tthe Inland Revenue have admitted that computer errors have delayed payments to pension providers on behalf of policyholders in the sum of £39.91m.
The Revenue said that a computer server that processes pension applications, cancellations, payments and recovering of contracted out national insurance money was switched off for an office move in April 2000 and not re-activated until November.
This has resulted in delayed payments into pensions which should be rectified in March.
The fault only originally came to light in November 2002 when a new computer system failed to pay 133,000 pensioners their correct State Retirement Benefits.