Pension Credits what to do.

superbigal36

Now I am still sifting through all my mother in laws spending woes.
Thats another story.
I am now assesing her actual income and am worried and not sure how to proceed.
She gets Pension guaranteed credit income of £47.17 weekly from DWP on her bank statement.
Now I cannot locate any paperwork as to how this figure has been actually calculated. I also do not know if this renews each year automatically or if pensioners have to submit an updated income form ?
Here's the dilemma.
I know the guaranteed pension figure for a single person is £148.35 a week.
I can see on top of the DWP £47.17 she also gets a state pension that works out at £75.29 a week. Total thus far £122.52
I can see 2 work pensions that have been getting paid for at least 6 years. They total £23.86 a week. I suspect this is part of the calculation as the total is now £146.38.
I also see an annuity that works out at £2.43 that has been getting paid for at least 6 years. Add that on and I am up to slightly over £148.35.
I believe this is probably what is in the DWP system, from the 1st claim for pension credit after retiral from working in Jan 2011. That is 100% her income at that point so the initial award back then looks correct.
Now the problem I can see appears to start in October 2012.
Another new annuity starts getting paid monthly that NOW equates to around £13.63 a week (Less back then).
The DWP credit though has never changed in the face of an apparent increase in earnings :mad:
I suspect every penny of that annuity earned since 2012 should result in a 100% equivalent reduction in credits. Is my thinking correct ?
Can someone confirm and that therefore she would owe circa £1650+ in overpayments ?
Now re the reward itself
Is this automatically renewed ?
Do you have to fill in fresh forms every year ?
Is the award annual ?
I don't think at 74 and alcoholic she has done this intentionally but I need to know if I should inform dwp myself ?

PS There are no savings or other elements to confuse this. Just debts !!!!!!
Cheers.

sheramber

pension credit normally has an assessment period

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382513/pc10s.pdf

If there is no information about the award you could phone the pension credit service. Your MIL would have to be with you to confirm that they can speak to you

superbigal36

Oh Thanks
So I see from the PDF the assesment period which will be 5 years will cover my quandry.
Worrying over nothing then.
Don't think I will rock this boat then.
It really does seem to be an odd means tested benefit.
If your income drops you can get the benefit raised.
If your income goes up then the benefit remains unchanged.
In the future I read that awards will actually be in effect for life !!!!!!!
I have copied a couple of extracts below.


This does not mean that they have been overpaid Pension Credit during the
previous assessed income period, because any increases to private pensions
(other than normal yearly
increases), annuity income (other than normal
yearly increases), equity release payments and capital are ignored until the
end of the assessed income period.



The assessed income period normally lasts for five years

If the total is the same as, or more than, the figure we have been using, their
Pension Credit will stay the same.
If the total is less than the figure we have been using, their Pension Credit will go up.

xylophone

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true

"Pension Credit assessed income periods

If you are over 65 and receive PC, the Pension Service may set an assessed income period (AIP). An AIP can be for a fixed period, or can be indefinite if you are over 75. Certain events can bring an AIP (even an indefinite one) to an end early. These include bereavement, separating from a partner, entering a new partnership, and going into a care home. If you have an AIP you do not
have to report any changes in your ‘retirement provision’, to the PensionService until the end of the AIP. Capital and income from an equity release scheme count as retirement provision. "

But if the recipient does not have an AIP or if it had come to an end then reporting to DWP would be required?

paulypost

As a newbie I'm not sure if this should be a new thread but my question is sort of linked to this thread and xylophone seems clued up? So here goes.
My mother died in July 2014. She was in receipt of £50pw Pension Credit and at 90 was probably on an indefinite AIP (I have read the Age UK pdf). However, she may not have been completely open with the DWP about her savings. Having been thru probate I now get a letter from the DWP Debt Mgmt group indicating that their enquiry “could lead to a claim against the estate” of which I am executor and sole beneficiary. My mother’s savings were £40k+

Mojisola

paulypost wrote: »

Having been thru probate I now get a letter from the DWP Debt Mgmt group indicating that their enquiry “could lead to a claim against the estate” of which I am executor and sole beneficiary. My mother’s savings were £40k+

As I understand it, that letter goes out automatically if the amount at probate looks over the limits. It doesn't mean there is any evidence of misclaiming.

I got one after Dad died and just wrote back giving them all the information about his benefits (which had been claimed correctly) and that was the end of it.

xylophone

The answer might depend on your mother's financial situation when she first claimed pension credit?

Mojisola

paulypost wrote: »

My mother died in July 2014. She was in receipt of £50pw Pension Credit and at 90 was probably on an indefinite AIP (I have read the Age UK pdf).

My mother’s savings were £40k+

xylophone wrote: »

The answer might depend on your mother's financial situation when she first claimed pension credit?

This is the important fact - how much did she have in savings when she was first given Pension Credit?

paulypost

As far as I can tell, her savings must have been within the capital limit or she would not have been awarded the PC limit at that time of first claim. But I have no way of proving that. Thankfully, she was very independent and sharp as a tack right to the end. So if the DWP want to search ‘history’, I am a bit stuck. Does anyone think they will want historic evidence or is this simply a fishing expedition by the DWP?
BTW thanks to mojisola and xylophone for their replies

pmlindyloo

paulypost wrote: »

As far as I can tell, her savings must have been within the capital limit or she would not have been awarded the PC limit at that time of first claim. But I have no way of proving that. Thankfully, she was very independent and sharp as a tack right to the end. So if the DWP want to search ‘history’, I am a bit stuck. Does anyone think they will want historic evidence or is this simply a fishing expedition by the DWP?
BTW thanks to mojisola and xylophone for their replies

Since you are the executor and the sole beneficiary then I should keep some money back until this is sorted (I'm talking worse case scenario here).

The key dates are

When did she start claiming PC? Was she awarded the indefinite AIP immediately or later? What were her savings when she first started claiming? Did they accumulate whilst she was claiming PC?

So has she any letters for the Pension Service?

Can you trace her Bank statements since she started claiming?

Can you trace her savings since she started claiming?

Although this is a 'fishing exercise' the Pension Service will still be investigating and I believe have information from the Probate office.

You are allowed £10000 in savings and then for every £500 over that £1 a week is treated as income. (unless in the AIP)

So, first, telephone and see what information they have - will save you a lot of time.

If she was awarded an indefinite AIP at the beginning of the claim then there will be no repayment due.

I found the Pension Service people really helpful. Just be up front and always get the name of the person who gives you any information (write the information down) and ask them to confirm by letter.

paulypost

Many thanks pmlindyloo.
Having now found an official PC letter with confirmation of the AIM, I can also see how much of her savings was taken into account at last review three months before she died. This means that the amount had been declared much earlier and the increase did not have to be disclosed. So I have spoken to the Debt Management section and a very helpful lady confirmed that this is an automatic process and may lead to nothing being reclaimed. Let’s hope that’s the case!