Section 12: Payment of public claims out of pension and gratuity

Where the board is satisfied that-
(a) a sum is due to the Federal Government from a person to whom a pension or gratuity is due under this Act;
(b) an overpayment on account of any such pension or gratuity has been made to any such person by the Federal Government, the Board may authorise the deduction from the pension or gratuity in respect of that sum or overpayment of such amounts at such times as it may think fit: and the amounts so deducted shall be applied in or towards paying or repaying that sum or overpayment.