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  • FIRST POST
    • Maincarer
    • By Maincarer 14th Mar 18, 1:35 PM
    • 10Posts
    • 14Thanks
    Maincarer
    ESA and Occupational Pension
    • #1
    • 14th Mar 18, 1:35 PM
    ESA and Occupational Pension 14th Mar 18 at 1:35 PM
    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 My DLA still hasn't been replaced by PIP.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.
Page 1
    • BorisThomson
    • By BorisThomson 14th Mar 18, 2:00 PM
    • 1,586 Posts
    • 3,420 Thanks
    BorisThomson
    • #2
    • 14th Mar 18, 2:00 PM
    • #2
    • 14th Mar 18, 2:00 PM
    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
    • By TELLIT01 14th Mar 18, 2:17 PM
    • 4,883 Posts
    • 5,216 Thanks
    TELLIT01
    • #3
    • 14th Mar 18, 2:17 PM
    • #3
    • 14th Mar 18, 2:17 PM
    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
    • By AnnieAYork 14th Mar 18, 4:12 PM
    • 3 Posts
    • 1 Thanks
    AnnieAYork
    • #4
    • 14th Mar 18, 4:12 PM
    Can anyone help?
    • #4
    • 14th Mar 18, 4:12 PM
    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.
    • Alice Holt
    • By Alice Holt 14th Mar 18, 4:32 PM
    • 2,020 Posts
    • 2,339 Thanks
    Alice Holt
    • #5
    • 14th Mar 18, 4:32 PM
    • #5
    • 14th Mar 18, 4:32 PM
    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.
    Originally posted by TELLIT01
    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
    • By xylophone 14th Mar 18, 4:56 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #6
    • 14th Mar 18, 4:56 PM
    • #6
    • 14th Mar 18, 4:56 PM
    There was a thread some months back which discussed this in more detail, but I can't find it.

    http://forums.moneysavingexpert.com/showthread.php?t=5731517&highlight=ill+health+pens ion+insurance
    • Alice Holt
    • By Alice Holt 14th Mar 18, 5:33 PM
    • 2,020 Posts
    • 2,339 Thanks
    Alice Holt
    • #7
    • 14th Mar 18, 5:33 PM
    • #7
    • 14th Mar 18, 5:33 PM
    Thanks xylo - that's exactly the one I was thinking of.
    • pmlindyloo
    • By pmlindyloo 14th Mar 18, 5:55 PM
    • 11,475 Posts
    • 13,367 Thanks
    pmlindyloo
    • #8
    • 14th Mar 18, 5:55 PM
    • #8
    • 14th Mar 18, 5:55 PM
    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
    • By TELLIT01 14th Mar 18, 6:30 PM
    • 4,883 Posts
    • 5,216 Thanks
    TELLIT01
    • #9
    • 14th Mar 18, 6:30 PM
    • #9
    • 14th Mar 18, 6:30 PM
    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
    • By AnnieAYork 15th Mar 18, 12:21 AM
    • 3 Posts
    • 1 Thanks
    AnnieAYork
    Thanks for the info LindyLoo
    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.
    Last edited by AnnieAYork; 15-03-2018 at 12:23 AM. Reason: Oops, duplicated post when trying to alter title!
    • AnnieAYork
    • By AnnieAYork 15th Mar 18, 12:22 AM
    • 3 Posts
    • 1 Thanks
    AnnieAYork
    Thanks for the info PMLindyLoo
    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.
    • Maincarer
    • By Maincarer 15th Mar 18, 11:07 AM
    • 10 Posts
    • 14 Thanks
    Maincarer
    Thank you everyone for your replies. I was awarded Incapacity Benefit before 1 April 2001. This puts my mind at rest.

    Is it a coincidence that today I have received the letter inviting me to apply for PIP?

    Once again, many thanks.
    • TELLIT01
    • By TELLIT01 15th Mar 18, 12:20 PM
    • 4,883 Posts
    • 5,216 Thanks
    TELLIT01
    Likely just to coincidence.
    • jonliv
    • By jonliv 15th Mar 18, 7:55 PM
    • 113 Posts
    • 90 Thanks
    jonliv
    Here is a link to the IB migration rules and the transitional arrangements

    http://www.official-documents.gov.uk/document/other/9780108509087/9780108509087.pdf

    Paragraph 113/114

    If your Private Pension was ignored for Incapacity Benefit It will continue to be exempted from the 85 rule for ESA (C) Support Group
    • going.for.gold
    • By going.for.gold 23rd Mar 18, 9:59 PM
    • 27 Posts
    • 3 Thanks
    going.for.gold
    I receive this letter every year, and I never really know by how much my occupational pension increases. In the correspondence they give you the option to authorise the DWP to contact your pension provider for the information. I agree to that always. I would prefer them to do the donkey work then there hopefully won't be any errors. You sometimes get a couple of reminders but it sorts itself out eventually.
    • justaquestion
    • By justaquestion 25th Mar 18, 6:53 PM
    • 492 Posts
    • 97 Thanks
    justaquestion
    A little off topic, but as ESA transitional protection ends in April 2020 I believe, and just wondering will those who have the occupational pension currently disregarded under ESA, still have that protection after 2020 when the transitional protection ends?


    If they are still in support group and on a continuous claim for ESA (CB)
    Last edited by justaquestion; 25-03-2018 at 6:55 PM.
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