Converting A Classic Civil Service Pension To A Different Type Of Pension

Ripley43

@xylophone asked why would she choose not to draw it at SPA/PCA?  Would she really choose to waive her right to substantial sums of money?

The reason she would not even draw it then is because she thinks that the arrears payment would still be applied retrospectively as income for the period for when she was receiving ESA, so she's thinking it will make no difference whether she claims it now or then and there will still be a massive overpayment of ESA, HB and CTB. 

Marcon

I've not posted on this thread in the last few days because I've had nothing 'definite' I could usefully add, but I have been following it with great interest. It seems to me a truly awful example of 'the (wo)man in the street' not having a clue how to proceed - which despite hugely valuable and knowledgeable/thoroughly researched input, especially from the likes of @Newcad, @kaMelo and @xylophone, remains as true now as when @Ripley43 started the thread.

Maybe this really is one for Martin Lewis, or possibly Paul Lewis on BBC's Moneybox, to pick up?

xylophone

The reason she would not even draw it then is because she thinks that the arrears payment would still be applied retrospectively as income for the period for when she was receiving ESA, so she's thinking it will make no difference whether she claims it now or then and there will still be a massive overpayment of ESA, HB and CTB. 

I have no personal knowledge of this but I get the impression that it is at SPA/PCA that DWP look at claimants' financial

circumstances and ask for details?

If so, the DB pension may come up at that stage anyway?

Might it not be wise for your mother to grasp the nettle and write to DWP to check on the situation?

After all,  if she has to make any repayments, she will have the means with which to do it?

Have you asked her about her state pension forecast?

Silvertabby

xylophone said:

The reason she would not even draw it then is because she thinks that the arrears payment would still be applied retrospectively as income for the period for when she was receiving ESA, so she's thinking it will make no difference whether she claims it now or then and there will still be a massive overpayment of ESA, HB and CTB. 

I have no personal knowledge of this but I get the impression that it is at SPA/PCA that DWP look at claimants' financial

circumstances and ask for details?

If so, the DB pension may come up at that stage anyway?

Might it not be wise for your mother to grasp the nettle and write to DWP to check on the situation?

After all,  if she has to make any repayments, she will have the means with which to do it?

Have you asked her about her state pension forecast?

It was not uncommon for LGPS deferred members to decline payment of their benefits from age 60/NRA because they would have lost more in means tested benefits.

But, once they reached SPA, DWP did seem to carry out a review - perhaps because they tried to claim pension credit etc - and would ask us for full details of benefits due.  

Sarahspangles

Marcon said:

I've not posted on this thread in the last few days because I've had nothing 'definite' I could usefully add, but I have been following it with great interest. It seems to me a truly awful example of 'the (wo)man in the street' not having a clue how to proceed - which despite hugely valuable and knowledgeable/thoroughly researched input, especially from the likes of @Newcad, @kaMelo and @xylophone, remains as true now as when @Ripley43 started the thread.

Maybe this really is one for Martin Lewis, or possibly Paul Lewis on BBC's Moneybox, to pick up?

It’s also the sort of issue that an MP’s office may help with. With most organisations, responses to MPs have to be signed off by somebody more senior. You don’t necessarily get a faster response, but what is needed is a definitive one. Sometimes visibility of issues even results in changes to policies and laws.

I think Silvertabby is right, at the point when OP’s mum reaches SPA the transition to a different regime is going to imply that this has to be revisited. 

Ripley43

@xylophone, @Sarahspangles, @Silvertabby, my mum has had a state pension forecast and this shows that she will be entitled to the full new state pension. She will not be claiming any state pension credit so I'm not sure if the DWP would still need to check her financial circumstances when she reaches SPA? She wont be claiming any other means tested benefits either.

Ripley43

@xylophone, @Sarahspangles, @Silvertabby, as per my last post am I correct in thinking that my mum's financial circumstances wouldn't be checked at SPA as she wont be claiming state pension credit or any other means tested benefits? Or is there something that I'm missing here?

Silvertabby

Ripley43 said:

@xylophone, @Sarahspangles, @Silvertabby, as per my last post am I correct in thinking that my mum's financial circumstances wouldn't be checked at SPA as she wont be claiming state pension credit or any other means tested benefits? Or is there something that I'm missing here?

Good question.  The DWP queries I dealt with only seemed to be in respect of those who went on to claim pension credit at SPA, otherwise we would have been swamped with the wretched things (several pages, had to list each individual amount and when due).

When your mum reaches SPA DWP will know that she has a Civil Service pension (NI COPE record) but I honestly don't know if they will check her previous means tested payments.   Hopefully someone with more insight into the workings of DWP will pop up with the answer.

In the meantime, however, I would be inclined to bite the bullet and claim the CS pension now.  Otherwise, your mum will spend the rest of her life waiting for 'that knock at the door'. 

 

Ripley43

@Silvertabby Thanks for the reply. What do you mean by she "will spend the rest of her life waiting for that knock at the door"?

xylophone

"will spend the rest of her life waiting for that knock at the door"?

I took this to mean that if your mother waits until SPA, even if there is no immediate enquiry concerning her MTBs, she could be constantly wondering/ worrying about if ever at some point there will be.

You have already said that your mother wants to claim her CSP so as to be free of the MTB system.

 I suppose that if she gets on and does so, at least she will know where she is.

With four years of deferred pension and her PCLS, even if there is some repayment due, she should still be reasonably comfortable financially?

And she will have a full NSP around the middle of 2027 by which time the amount should be no less than around £12,600 per annum?

it really is up to her how she wants to proceed. She could always try a letter to DWP now for a ruling on the correct interpretation of the legislation.

Do you and your mother know what would have been her PCLS and monthly pension if she had claimed at 60?

Would she stlll have been entitled to some MTBs, even if the amount would have been reduced?