A Gift from Department of Work and Pensions?

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
1 reply 836 views
James123_2James123_2 Forumite
519 Posts
Here's an odd one.
I was awarded an ill-health pension in 2008. However, the pension provider didn't get their act together until this month - April. As such, my pension of £6000 (Annual) has been backdated to January 2008 giving me in initial taxable lump of £7k
In all of this time I have been receiving IB. I've rang them and they seem to want to disregard this back-payment. (I understand that the award is withdrawn on a pro-rata basis after £85 a week). Whilst I'm happy to accept this, I wonder whether the same will apply when I finally fill out the necessary paperwork. My concern was that my first year's pension would actually come in at £13k with the back-payment and thus remove 95% of the IB. If the pension folk had got their act together this would have resulted in a removal of IB to the tune of about £400 only.
Anyway, I've probably confused you all now. Just wanted to do the right thing. Any thoughts welcomed.


  • James123_2James123_2 Forumite
    519 Posts
    In answer to my own question ....
    The DWP are only interested on the date the first payment was made and the annual amount of the pension. They're not interested in any arrears. As such, the pension provider has actually saved me some £££ by being inefficient. So, thanks.
    (Just thought I'd let you all know!?! LOL)
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