Pension Credit & unpaid occupational pension

KBM68

On 31st March I closed my business, the next day I tried to claim Job Seekers allowance – the computer suggested as husband was over 60 we should claim Pension Credits.

We did & had a visit in May, many further phone calls ensured and we finally had a decision in October.

The next day (after a large payment had been received & spent) they sent us a form to send to my husband’s private pension company to see if he could have claimed his occupational pension early. I immediately phoned them & we could have. I rang the office & they took this information as a ‘change in circumstances’ and told me the claim would be stopped & the money reclaimed as an over payment.


The occupation pension starts when he is 65 but he may claim it early at a reduced rate


I have saved up all the weekly payments we have received & carefully managed to save up the bit we spent.

I rang last week & they said "of course we were entitled to it, no question"; & I don’t know whether to believe them or not.


So what do I do now?

teddysmum

Your post is not very clear.


eg You say you received and spent a large sum, immediately, but later refer to it as a 'bit'.


Are you saying the benefits people say that you are entitled ( in which case, entitled to what? ie have you been overpaid due to rights to a pension?) or that the pension providers say your husband is entitled to draw the early pension ?

xylophone

The occupation pension starts when he is 65 but he may claim it early at a reduced rate

I do not see how your husband can be forced to disadvantage himself if this is an occupational DEFINED BENEFIT scheme ( where the Normal Retirement Age is 65 and the pension cannot be accessed early without actuarial reduction).

If either of you has a DEFINED CONTRIBUTION scheme see

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

KBM68

Sorry they paid £1300 which we paid off some debt, then next day they paid approx £3000 & £500 the following week

I haven't touched the 2nd & 3rd paymentt and I have saved up the first payment so it's there for them if they reclaim it.

I guess I used the word 'bit' instaed of 'part' sorry

They now pay him weekly

I'm not sure if his pension is a defined contribution pension
"you will have more flexibility about what you do with your “defined contribution” pension. This is where you build up a pot of money rather than the right to a pension"

It's an occupation pension which will pay an amount each month once he is 65 I'm not sure he can withdraw lump sums or decide how it's invested - is that the same?

We will stop claiming Pension Credit when my husband is 65 & his pension starts

KBM68

I wondered if anyone else knew anything about pension credit

I don't really understand about defined contribution pension - could anyone explain that please

I'm sorry I'm so confused and scared but I don't trust them enough to spend the money in case we end up with a big debt

TELLIT01

This is one of the great anomolies of the benefit system. On the one hand they can order you to take a pension despite the fact that it will actually not be to your long term financial benefit to do so, on the other they will penalise you for paying off debts which will benefit your long term financial situation.
To the original question of whether or not you can be forced to take a pension early, I don't know about defined benefits pensions, but when my brother tried to claim Pension Credits he was told that if he didn't take his final salary pension early, he would have to obtain an illustration of how much he would be entitled to and, that would be deducted from any payment.

KBM68

Thanks - I think his pension is more like a final salary one

So if we have told them & they have said we aren't entitled & then that we are entitled

How long do i keep it until I spend it? forever?

I've put it in premium bonds so I can access it whenever & our claim will stop in September so we might find out then I guess

KBM68

Got a letter today (dated 17th Jan)to say they have reassessed his claim based on the new information given and increased it by £5 a week

Dare I risk spending it?

xylophone

If your husband is in a defined benefit pension scheme and the pension is not normally payable without reduction until a scheme pension age of 65, then I am not at all sure that he can be required to access the pension early to his financial detriment.

Your husband should write to query the matter if he is required to do so so as to get the decision and explanation in writing.

One other thought - is your husband ill so that he would qualify for his DB pension to be paid immediately in full without actuarial reduction?

KBM68

The DWP wrote to his pension co directly on Oct 16 so there is no point contacting them directly is there?

He was med retried years ago but had a permanent health ins since (which is disregarded)

It 'hurts' having money that may or maynot be ours & can't be spent

I though/hoped this new letter would have taken everything into account

xylophone

The DWP wrote to his pension co directly on Oct 16 so there is no point contacting them directly is there

Speaking personally, I would want the decision and explanation in writing.