ESA and Occupational Pension

Maincarer

Hi,

Can anyone advise me please as I have tried searching the Internet without success?

In 2001 I was retired on medical grounds and given a ill- health pension by my employer. Not knowing anything about benefits I went to what is now the DWP and made claims for Incapacity Benefit and DLA. I receive both; the DLA was awarded at the higher rate for both care and mobility. It was an indefinite award.

When Incapacity benefit was replaced by ESA I was placed in the Support Group and have been for over 3 years now. My DLA still hasn't been replaced by PIP. I have not been contacted about that yet.

I have always declared my pension to the DWP and pay Income Tax on it.

A few days ago I received a letter from the DWP. It said that it knew I was about to have an increase in my occupational pension and wants to know the new figure. I have had cost of living increase every year but wont know for several more weeks what it is. I find it odd because they have never asked for this information before.
The letter says that my ESA will be reduced but doesn't say why. I have Contributions based ESA not Incomes based. I have never claimed Income Support due to my pension. I am 52.
Everything I have found on the Internet says this is a grey area and that the DWP contradicts itself on this subject. I am happy to supply the DWP with any information but I do wonder if my ESA is about to be stopped. I receive £287 nett per week ill health pension.

Can anyone advise me if the DWP is correct to be asking for this information and what effect it will have on my ESA.

I should add that I am a single Mum with a severely disabled adult son who receives DLA and ESA in his own rights. He has 24 care due to his condition and it is Continuing Health Care.
I have a mortgage which I pay along with all the other bills.

Many thanks for any advice.

BorisThomson

If you receive an occupational or personal pension that pays more than £85 a week, your contributory ESA will be reduced by half of the amount over this limit.

TELLIT01

Have you informed DWP each year when your pension increased? I have something buzzing around in the deep recesses of my brain about some forms of ill health pension being fully disregarded but can't remember the details.

AnnieAYork

I was so relieved to find this thread and know I'm not alone. I have a number of urgent questions, the letter says I have to respond within 2 weeks. Does anyone know, please:

1. Which type of pension is dis-regarded?

I have an ill health pension which has always been dis-regarded (since 1987) against the
progression of : Invalidity Benefit, Incapacity Benefit and finally ESA (cont. based)

2. How do I reply to the DWP/JobCentrePlus letter - do I challenge them through my reply?
Or do I write separately?

I hope someone out there knows what to do. Any help would be appreciated.:hello:

Alice_Holt

TELLIT01 wrote: »

I have something buzzing around in the deep recesses of my brain about some forms of ill health pension being fully disregarded but can't remember the details.

I think it relates to payments from an insurance (ill health / permanent health) policy to which the claimant has been contributing at least 50% of the premiums.
I don't believe occupational pensions are disregarded - even if paid due to early retirement on ill health grounds.

There was a thread some months back which discussed this in more detail, but I can't find it.

xylophone

There was a thread some months back which discussed this in more detail, but I can't find it.

https://forums.moneysavingexpert.com/discussion/5731517

Alice_Holt

xylophone wrote: »

https://forums.moneysavingexpert.com/discussion/5731517

Thanks xylo - that's exactly the one I was thinking of.

pmlindyloo

I think both the OP's and the other post refer to the transitional protection after transferring for IB to ESA.

CPAG (the experts!) says this:

Those on IB and SDA who claimed before 6 April 2001 or are entitled to the highest rate care component of disability living allowance will continue to have any occupational pension fully disregarded on transfer to contributory ESA, unlike other ESA claimants who have 50 per cent of any occupational pension over £85 a week deducted from their entitlement.

TELLIT01

Thanks for the clarification pmlindyloo. I was actually thinking about permanent health insurance as per Alice Holt's post, but the IB transition is likely to be the one relevant to the OP.

AnnieAYork

Thank you so much for the information, I really hope that it will make a difference when I contact JobCentrePlus about the letter they sent.

Sometimes it feels as if you're living on a roller coaster & I never did have a head for heights! I've only just gone through the switch from DLA to PIP & now have this to face.

Thanks again.

AnnieAYork

Thank you so much for the information, I really hope that it will make a difference when I contact JobCentrePlus about the letter they sent.

Sometimes it feels as if you're living on a roller coaster & I never did have a head for heights! I've only just gone through the switch from DLA to PIP & now have this to face.

Thanks again.