Universal Credit + Pension

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This discussion was created from comments split from: UC & Pension.

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  • Can anyone help please?
    Similar issue to OP.  I'm in receipt of UC following ill-health retirement and I'm under state pension age. 
    I have been notified by a pre3vious employment's defined benefits pension scheme that my normal retirement age is later this year when I have the option to take a pension/lump sum (when I left the job years ago that's when the state pension would have kicked in.)
    I want to (& can) defer this pension until my SP age (a few years away yet) but having looked at the UC Regulations 2013 mentioned earlier in this thread I'm confused whether the pension would be treated as 'unearned notional income' (an income I could apply for but don't) and viewed as deprivation of income by UC, or whether, as I'm not at state pension age, I can safely defer this defined benefit pension without it affecting UC.
    I contacted UC but rather than the promised call back by a case manager I got a UC journal msg stating that they don't give financial advice (which I wasn't asking for, I was asking for clarification of UC rules), but if I chose to take the pension, it would be deducted from UC. Do I take it that the 'if' means I have the choice to defer it? 
    I also contacted CAB. The 1st person I spoke to stated it would be classed as notional income but when I received the links to the guidance he'd used it was referring to 'earned income' and state pension age occupational pension rules. I rang back and the 2nd person stated it wouldn't affect UC as I'm not at state pension age - but the guidance he was following was not in a format he could email to me. 
    I'm so confused!! 
  • NedS
    NedS Posts: 3,516
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    Looking at the Advice for Decision Makers guidance, H5154-H5170 all talk about a claimant deferring taking a retirement pension who has reached SPC age (SPC = State Pension Credit age, the age you are entitled to claim Pension Credit).
    So I think you are OK to defer any DB pensions until your SP age.
    Even if this were not the case, it would be impossible to enforce - how would DWP/UC ever know you are not in receipt of something that you may be entitled to receive but have chosen not to?
  • rosewalk
    rosewalk Posts: 19
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    You can defer to State Pension Age, Universal Credit won't treat this as notional income.
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