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DLA, ICB and company pension query
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cyclonebri1
Posts: 12,827 Forumite
Hi, First venture on to this this site so 1st, thanks in advance for any advice, and secondly apologies for any repeat of well answered queries:beer:
I'm 54, shortly 55 years old. I've had a terrible year health wise and am now unlikely to be able to continue in the type of job I've held with my present, (only) company for the past 37 years.
I have been off work for approaching 26weeks and am likely to remain this way for the forseeable future.
I am now in receipt of the higher rate disability living allowance and lower rate attendance allowance. I have a small company pension due to having spent a fair while in a private pension scheme. This company amount looks quite critical to get me through the next 5 years that I hadn't exactly planned for.
There does appear to be a discretionary mechanism within the company final pension scheme that MAY allow me to take a non reduced pension after 55 due to ill health. At present I am unaware if anyone in the company has ever received this.
The company sick scheme gives me 6 months on full pay, the point I'm at now, followed by 6 months 1/2 pay.
The 2 queries I have are as follows,
As SSP, this is claimed back by the company on my behalf, runs for only 26 weeks, I assume I will shortly be on incapacity benefit.
1) Can I take the company pension, receive ICB and DLA and the small company pension? what are the tax implications?
2) Will the company take the same approach with ICB, ie pay my 1/2 pay and claim it back?, and how will the transition from SSP to ICB happen?
I realise that bith queries will need addressing to my employer, but any advanced information, normal produre etc, that I am aware of will of course be an advantage to me.
I have some savings that I intend to use on a spend down basis alongside any benefits, and am a home owner with NO debt.
Thanks again.
I'm 54, shortly 55 years old. I've had a terrible year health wise and am now unlikely to be able to continue in the type of job I've held with my present, (only) company for the past 37 years.
I have been off work for approaching 26weeks and am likely to remain this way for the forseeable future.
I am now in receipt of the higher rate disability living allowance and lower rate attendance allowance. I have a small company pension due to having spent a fair while in a private pension scheme. This company amount looks quite critical to get me through the next 5 years that I hadn't exactly planned for.
There does appear to be a discretionary mechanism within the company final pension scheme that MAY allow me to take a non reduced pension after 55 due to ill health. At present I am unaware if anyone in the company has ever received this.
The company sick scheme gives me 6 months on full pay, the point I'm at now, followed by 6 months 1/2 pay.
The 2 queries I have are as follows,
As SSP, this is claimed back by the company on my behalf, runs for only 26 weeks, I assume I will shortly be on incapacity benefit.
1) Can I take the company pension, receive ICB and DLA and the small company pension? what are the tax implications?
2) Will the company take the same approach with ICB, ie pay my 1/2 pay and claim it back?, and how will the transition from SSP to ICB happen?
I realise that bith queries will need addressing to my employer, but any advanced information, normal produre etc, that I am aware of will of course be an advantage to me.
I have some savings that I intend to use on a spend down basis alongside any benefits, and am a home owner with NO debt.
Thanks again.

I like the thanks button, but ,please, an I agree button.
Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)
Always expect the unexpected:eek:and then you won't be dissapointed
Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)
Always expect the unexpected:eek:and then you won't be dissapointed
0
Comments
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DLA at least is entirely separate from any payments and benefits.0
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DLA at least is entirely separate from any payments and benefits.
Bri.I like the thanks button, but ,please, an I agree button.
Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)
Always expect the unexpected:eek:and then you won't be dissapointed0 -
Incapacity Benefit is reduced by 50p for every £1 of Company Pension over £85. Otherwise it is not means tested.
IB is taxable.
You can draw half pay and IB.
As far as I remember, my husband was told by his employers that he now had to claim IB.
He can still claim it now he has taken early retirement and gone to live in Spain.
Hope this helps!(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
seven-day-weekend wrote: »Incapacity Benefit is reduced by 50p for every £1 of Company Pension over £85. Otherwise it is not means tested.
IB is taxable.
You can draw half pay and IB.
As far as I remember, my husband was told by his employers that he now had to claim IB.
He can still claim it now he has taken early retirement and gone to live in Spain.
Hope this helps!
It helps alot,thanks.I like the thanks button, but ,please, an I agree button.
Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)
Always expect the unexpected:eek:and then you won't be dissapointed0
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