Not receiving State Pension after 10 years???

abumblebee · 4 June 2011 at 1:28PM

We are a married couple I am 75 years old and my wife 69. I have been retired for 10 years and have been receiving payments each week as Pension Credit (which we believed to be the State Pension) for both my wife and myself.

1. I recently received a letter from the DWP informing me that we had never claimed our State Pensions and we were totally unaware of this situation. It appears we never received a Pension Forecast.

2. Our concerns are: By changing to State Pension will I be liable to pay anything back? :eek:

3. How easy is this to do and does anyone have experience of this scenario?

CLAPTON · 4 June 2011 at 2:19PM

how do you come to be receiving pension credits?

abumblebee · 5 June 2011 at 1:06PM

The years leading up to retirement I was unfortunately unemployed and the benefits office automatically asked me to fill in the various forms which led me to receive Pension Credits.

seven-day-weekend · 5 June 2011 at 2:05PM

You might find they owe YOU some money as Pension Credit might be less than the State Pension you should have received.

If you have been claiming Housing and Council Tax Benefits these will also have to be reassessed.

I'm sure if you have to pay any back, then you will be able to arrive at a mutually acceptable payment plan.

CIS · 5 June 2011 at 2:41PM

If it hasn't been claimed then IIRC it defaulted to increments - this means that when you did get around to claiming it you get a slightly higher weekly amount . They did change the system a few years ago but as far as I'm aware any deferred ones from before that would remain on the increment system rather than the lump sum payment option (you may possibly be able to claim the lump sum in any case but you would need to speak to the Pension Service about this).

abumblebee · 8 June 2011 at 8:52PM

Thanks for taking an interest - CLAPTON

Good advice and many thanks - seven-day-wonder

CIS - Good advice and I take your advice 'on board' - thanks

esseesee · 9 June 2011 at 11:08AM

I finished a temporary job in January. I had some savings and was due for a holiday so wasn't concerned. After coming back from my holiday, I found getting a new job proved to be difficult. So I applied to start receiving my state pension (only partial as I've worked overseas for many years). Given that I hadn't been working since January, my pension credit was backdated 3 months (the maximum allowed) and my state pension begun the next week. I have just received the backdated pension credit of £137/week (as a single person) as a lump sum for the period before I started claiming my state pension; pension credit now that I am claiming my pension is somewhat less of course. I also received a lump sum as I had delayed claiming my state pension. Methinks another holiday is on the cards! I like this retirement business, I have to admit.

Whether you will be eligible for a lump sum on the basis of a deferred pension - and whether that lump sum, if received, will render you ineligible for pension credit - I cannot say, but I found the Pensions Service telephone help line staff to be that rare thing, genuinely helpful, and I doubt very much that you would have to pay anything back at all, as you have not been receiving any more than you would have received had you been claiming your state pension from the beginning.

Good luck and let us know how you get on!

hugheskevi · 9 June 2011 at 11:20AM

I have just received the backdated pension credit of £137/week (as a single person) as a lump sum for the period before I started claiming my state pension; pension credit now that I am claiming my pension is somewhat less of course. I also received a lump sum as I had delayed claiming my state pension. Methinks another holiday is on the cards! I like this retirement business, I have to admit.

The backdated pension credit should have taken into account the State Pension you were not claiming and treated it as notional income, so I think you may have been paid too much back-dated Pension Credit that you should be aware that you might get chased for.

See page 14 of this link for further explanation of notional income.

The same rules would apply to OP, but trying to unravel 10 years of deferral and Pension Credit would be mind-bogglingly complicated so I've no idea how it would be treated in practice.

esseesee · 9 June 2011 at 12:02PM

hugheskevi wrote: »

The backdated pension credit should have taken into account the State Pension you were not claiming and treated it as notional income, so I think you may have been paid too much back-dated Pension Credit that you should be aware that you might get chased for.

I have it in writing from the DWP the amount that was 'owed' to me and exactly how they have worked it out. I questioned several help-line advisors thoroughly about this, and requested the explanation, amounts and calculations in written form specifically because of this possibility, which they have discounted - again in writing.

placido · 9 June 2011 at 3:14PM

esseesee wrote: »

I have it in writing from the DWP the amount that was 'owed' to me and exactly how they have worked it out. I questioned several help-line advisors thoroughly about this, and requested the explanation, amounts and calculations in written form specifically because of this possibility, which they have discounted - again in writing.

I am not surprised at this outcome. It has happened to other people; and there was some debate on the matter on a specialist welfare forum about a year ago.

The receipt of pension credit, you would think, would be treated as notional income and deducted from any state pension entitlement.

In fact, this does not appear to be the case. It would seem that there is a "loop-hole" in the regulations which oblige the DWP to pay (in some cases, at least) all of the state pension arrears without taking in to account the payments of pension credit.

Sounds crazy, but you got lucky; Enjoy!

smugla · 28 June 2011 at 11:22PM

Same thing happend to my dad his been on pension credit since he was 60 and didnt realise he should have had his state pension at 65 and at 68 he was offered a lump sum of £18,000 which we kept asking if he was intitled to and yes It would seem that there is a "loop-hole" in the regulations which oblige the DWP to pay all of the state pension arrears without taking in to account the payments of pension credit.this loop hile has now closed by the new goverment as they had to pay people twice !

Not receiving State Pension after 10 years???

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