ESA and Medical Retirement

50Twuncle

As an ESA (contribution based) claimee - I have the option of taking medical retirement from my long term past employment - providing me with an income of around £7500 pa

What will happen to my ESA claim - if I go down this route ?

I have read differing views - some say "You will lose it completely" - some "You will still get the full amount" - some "You will lose it £ for £"
Anyone got the definite rules for this ?

seven-day-weekend

AFAIK you will lose 50p in the £ from your ESA for every £1 of Occupational Pension over £85 a week.

Example : Pension of £100 a week, you would lose £7.50 from ESA.

My husband claims Incapacity Benefit and his Teachers' Pension and money is deducted from his IB as I stated above, but he still gets SOME IB. I'm pretty sure CB ESA works the same.

50Twuncle

Do you have a link for this ?
I can't see it mentioned anywhere...
I have a lump sum invested - which DWP are aware of - this made no difference to my (CB) benefits

seven-day-weekend

http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/esa/DG_171896

(From the above link):

Pension income rules

If you receive contribution-based Employment and Support Allowance and have a gross pension income of more than £85 a week, the amount of benefit payable will be reduced by half of the excess.

The excess is the difference between £85 and the actual pension income. For example, for a pension income of £100, the excess is £15. The amount of Employment and Support Allowance payable is reduced by half of that, which is £7.50.

If you receive income-related Employment and Support Allowance, any pension income you have will be taken into account, regardless of the amount.

zzzLazyDaisy

Also note that claimants on IB who are also in receipt of High Rate Care DLA are exempt from the deduction for ill-health pensions, but there is no such exemption for claimants on ESA

More info about ESA here

http://www.cpag.org.uk/cro/wrb/wrb205/calculating_esa.htm

50Twuncle

So - if I was to receive say£150 per week - I would lose £32.50 per week of ESA ?
Thats not unreasonable, I suppose

seven-day-weekend

21Twinkle wrote: »

So - if I was to receive say£150 per week - I would lose £32.50 per week of ESA ?
Thats not unreasonable, I suppose

Yes, that is correct.

50Twuncle

zzzLazyDaisy wrote: »

Also note that claimants on IB who are also in receipt of High Rate Care DLA are exempt from the deduction for ill-health pensions, but there is no such exemption for claimants on ESA

More info about ESA here

http://www.cpag.org.uk/cro/wrb/wrb205/calculating_esa.htm

That's very interesting - I wonder what else has "slipped by unnoticed" in the change to ESA ?

NASA_2

21Twinkle wrote: »

That's very interesting - I wonder what else has "slipped by unnoticed" in the change to ESA ?

It was only some IB claimants - not all.

50Twuncle

What decided who is affected ?
Post-Code ?

50Twuncle

seven-day-weekend wrote: »

AFAIK you will lose 50p in the £ from your ESA for every £1 of Occupational Pension over £85 a week.

Example : Pension of £100 a week, you would lose £7.50 from ESA.

My husband claims Incapacity Benefit and his Teachers' Pension and money is deducted from his IB as I stated above, but he still gets SOME IB. I'm pretty sure CB ESA works the same.

Is occupational pension paid only at "normal" retirement age ?
I am in my late 40's - so am not going for an occupational pension - more a retirement on "medical grounds" pension - which "may" be treated differently - how can I find out ?
"Entitled to" doesn't help - I can put my income in and it just says "OK What about housing benefit" ?