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ESA and private pension

edited 21 October 2017 at 6:46PM in Benefits & Tax Credits
83 replies 31.9K views
2456789

Replies

  • edited 22 October 2017 at 1:49PM
    epitomeepitome Forumite
    3.2K posts
    edited 22 October 2017 at 1:49PM
    DMG Chapter 44. (relates to Conts only)

    Permanent health insurance
    44723
    Where the claimant
    • 1. receives a payment under a permanent health insurance scheme and
    • 2. had contributed over 50% of the premium
    then the payment is not deducted from ESA(Cont)
  • epitomeepitome Forumite
    3.2K posts
    The full section:

    Disregarded payments

    44716 Certain payments may be received by the claimant but do not fall to be deducted from ESA(Cont)

    Pension payments

    44717 Payments may be payable to the claimant under
    1. a personal pension scheme or
    2. an occupational pension scheme or
    3. a public service pension scheme and

    because a person who was a member of the scheme has died.

    44718 Any payments in DMG 44717 are known as survivors' benefits and should be disregarded in full

    Example: Guy's wife Jane is a member of an occupational pension scheme. Following Jane’s death a reduced pension payment is paid by the scheme to Guy. This pension is not taken into account when working out the amount of ESA(Cont) payable to Guy.

    Pension protection fund periodic payments

    44719 Any PPF periodic payment made to the claimant as a beneficiary on the death of a person who was entitled to this type of payment is disregarded

    Shortfalls in pension schemes

    44720 Where a full pension cannot be paid to a claimant because of a deficit or because of insufficient resources in the pension scheme then the shortfall is not taken into account

    War pensions

    44721 Any pension payment under a pensions scheme in respect of death due to military or war service is not to be deducted from ESA(Cont)

    Guaranteed income payments

    44722 Any guaranteed income payment1 under the Armed Forces Compensation Scheme is not to be deducted from ESA(Cont)

    Permanent health insurance

    44723 Where the claimant
    1. receives a payment under a permanent health insurance scheme and
    2. had contributed over 50% of the premium

    then the payment is not deducted from ESA(Cont)

    Payment in arrears

    44731 Pension payments are often made in arrears, and can be
    1. weekly or
    2. monthly or
    3. quarterly or
    4. any other period.

    Subject to DMG 44711 -44718 any pension payments deducted from ESA(Cont) should start from the first day of the benefit week in which the payment is made to the claimant.

    44732 A pension payment must actually be made before the DM deducts an amount from ESA(Cont).

    Example: William claims ESA and is entitled to ESA(Cont) from Thursday 8 November. His benefit week ends on a Thursday. He is entitled to a pension payment of £95 a week from Monday 5 November of which he receives his first payment (£380) on Monday 26 November. Only half of the excess of the weekly pension amount above £85 can be deducted from ESA(Cont). ESA(Cont) is awarded at the full rate from 8 November but from the benefit week 23 November to 28 November and thereafter £5 [(£95 -£85) ÷ 2] is deducted from his ESA(Cont).
  • edited 22 October 2017 at 1:51PM
    Mark4321Mark4321 Forumite
    25 posts
    edited 22 October 2017 at 1:51PM
    Well thank you all for your help but I still don't know the answer. On the other hand I had to stop working not because I wanted but I was forced due to my disability . I can't understand how it could be that now I am punished by DWP for being preventive ? I have been paying extra money for eyars to have extra cover to have more money when life goes wrong and there is nothing wrong with it.These insurance scheme was not compulsory and to me DWP should not now use it to wave my right to receive ESA. If that is the law , for sure isn't fair. Due to my circumstances I am unable to visit CAB so could you advice about any help I can get over the phone or internet ?

    Just to add more details , I have contributed to my pension scheme by paying 50 % and the other half was paid by them.
  • edited 22 October 2017 at 2:01PM
    Alice_HoltAlice_Holt Forumite
    3.8K posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭✭
    edited 22 October 2017 at 2:01PM
    OP - when you get advice from the CAB take your pension / policy details with you so that they can check if it is a pension or an insurance payment. You can contact them by phone or email -
    https://www.citizensadvice.org.uk/about-us/how-we-provide-advice/advice/

    If it's insurance then epitome is very likely to be correct (he usually is), and I'm sure he will be able to confirm this to you when he gets more info. (Edit: as he has indeed done at post 13). From your post above it seems it may be insurance rather than a pension.
    Can you contact the company paying you to confirm exactly what it is, post you clarification which you then could pass onto the DWP?
    If it's a pension then the £85 rules apply (per Tellit01), and I think there is no distinction between the type of pension.

    Does the payment come from your ex employee's pension scheme or from an insurance company?
    If it is a payment of Permanent Health Insurance (see epitome's post above), then your ESA should not be reduced.

    If you do need to repay any monies, then the CAB should be able to help you complete an Income & Expenditure sheet. You repay at an affordable monthly amount. This can be agreed with the DWP debt management centre.

    Are you in receipt of PIP?
    Was the disability a result of an accident at work?
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • epitomeepitome Forumite
    3.2K posts
    You know what would be funny, if FEPS are wrong, you could write a letter asking for a compensation payment, for the stress the DWP have caused you over this.....

    I will find out the right words you should be using in your letter to achive this...
    FEPS really should have checked and double checked your existing ESA Conts claim to see why your existing pension of £150 was being disregarded in full before making an incorrect decision and sending you threatening letters.
  • epitomeepitome Forumite
    3.2K posts
    I think the first step for you today is to look at your
    "Pension on grounds of ill health" Policy statement
    And tell us what it says.

    Does it say anything like "Permanent Health Insurance"

    If not, phone up the providor and ask them before phoning the DWP.

    Also find out what were the total premiums that were paid each month, and how much of each premium was paid by you / paid by your employer.
  • xylophonexylophone Forumite
    33.5K posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    44723 Where the claimant
    1. receives a payment under a permanent health insurance scheme and
    2. had contributed over 50% of the premium

    Even if PHI, ( and not pension - the OP refers to both policy and pension which is confusing) the OP would not appear to qualify?
    Just to add more details , I have contributed to my pension scheme by paying 50 % and the other half was paid by them.
  • edited 22 October 2017 at 2:12PM
    epitomeepitome Forumite
    3.2K posts
    edited 22 October 2017 at 2:12PM
    OP needs to find out what is Pension and what is Insurance, and the portion of the premium he paid.

    The fact that the dramatic increase was due to deterioration in health implies the increase is the Insurance.


    If the OP is getting ESA(C) at £108.15 it could be due to
    A Gross Occ Pen figure of
    £88.00 per week
    £4,576 a year
    £381.33 a month
  • edited 22 October 2017 at 2:17PM
    Mark4321Mark4321 Forumite
    25 posts
    edited 22 October 2017 at 2:17PM
    My pension is from Scottish Public Pension Agency. I don't claim any other benefits apart of ESA. You are right my ESA is 109,65 a week. Payslip says I am a pensioner. Regarding 50 % contribution I can't be sure about this as heard this from my friend only and would have to contact SPPA.
  • epitomeepitome Forumite
    3.2K posts
    And what does your pension policy statement say?

    And have you got records like payslips, that tell you the % of premium paid by you.
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