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Incapacity Benefit occupational pension pre 2001

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6 years 1 month ago #208289 by Bob2016
Help needed.
Got a letter today from DWP Asking for information regarding my ill health occ pension . I took out IB 1999 and also at same time my ill health occupational pension. i have had IB and was successfully transferred to CB ESA support group and this has been continuous since 1999..
This is the first time the DWP has asked for this information after 19 years of having it.
Another point the DWP letter states i gave them my pension information when i did not. i have not spoken with them.
Any advice would be helpful.

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6 years 1 month ago #208334 by Gordon
Bob

Did you notify the DWP when you first received the pension or when you claim Incapacity Benefit, which ever was the later?

Was your pension disregarded under IB? If it was then it should be under ESA.

It's likely that the payments have been flagged by HMRC who notified the DWP.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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6 years 1 month ago #208434 by AnnieA
Hi

I hope you don't mind me taking "piggy-back" in this topic, :cheer: I seem to have a similar problem & need some urgent advice about how to proceed.

I had a very similar letter at the weekend, it quoted the correct gross monthly pension from my former employer, so I assumed that info came from HMRC, just as Gordon said.

The letter asks for details of the annual pension increase & makes it appear that I will lose ESA as a result of the pension?

I became ill & unable to work in Jan 1986, was awarded an ill-health pension ca July 1987 & it was always disregarded. Starting with Invalidity Benefit, then Incapacity Benefit, before being moved to ESA(Support Group).

When moved to ESA about 6 years ago, I started to pay tax on that benefit, through my pension. Before that time I hadn't had to pay tax on Invalidity or Incapacity benefits. I've always wondered if that was correct, or have they been taxing me incorrectly?

A few years ago I read somewhere that private pensions would start to be taken into account from 6 April 2020, but I didn't know if that would affect me or not. I certainly didn't know they would start doing so in 2018?

I think I read that you lose £1 ESA for every £2 of pension, which is quite devastating.

Basically, I need to know:

Do I have to forfeit ESA for my private pension as it has never been taken into account before?

What do I say in replying to the letter? Do I challenge them there, or write separately?


Sorry that this is a long post (my first!) but I wanted to give as much info as possible, hoping to get some advice from Gordon? I have to reply to the letter within 2 weeks of receiving it, supposedly to tell them what my pension will increase to at the end of March (I won't have the info by then but still have to reply).

Thanks in advance, I don't know what I'd do without this site, I joined in 2012 & you've made it easier to cope.

AnnieA

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6 years 1 month ago #208513 by buddie
Hi Bob & Annie,
Hope this helps - I have also just had the first ever letter from DWP instructing me to inform them of my annual pension increase. They quoted my monthly income which I guess they had from the tax office as my Tax summary arrived in the same post.

Like you, I have claimed since prior to April 2001 so the Pension Rule does not apply but it was still rather a fright to have such an official letter arrive. I started to question myself !

Anyway I decided to gather all my paper and phone them straight away rather than let it upset me further. I needn't have worried - the lady who finally answered at the call center was pleasant and after a short delay while she read my records said to disregard their letter. It was just computer generated and sent in error - she could see that it did not apply and would make a note that I had called.

Give them a call and please don't make them add to your health problems. Good luck

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6 years 1 month ago #208515 by Gordon
Annie

I'm sorry my original response does not appear to have posted.

So my answer is the same as I posted for Bob

Did you notify the DWP when you first received the pension or when you claim Incapacity Benefit, which ever was the later?

Was your pension disregarded under IB? If it was then it should be under ESA. It not being deducted is not the same as it being disregarded.

The rule for pensions and ESA(CB) is as follows

There is an £85/week disregard followed by a £1 deduction for every £2 of pension in excess of the £85.

Disregarded pensions under IB were also exempt from tax, this is not the case for ESA.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: AnnieA

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6 years 1 month ago #208534 by Bob2016
Hi All, thanks for your advice, i will give them a call.

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