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Pension disregards

Aquarius
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12 years 3 months ago - 12 years 3 months ago #95240 by Aquarius

Pension disregards was created by Aquarius

Hi

I have recently been transferred from IB TO ESA(CB) and placed in the support group.

As I will be 60 in a couple of months, I will become entitled to a small occupational pension as well as a lump sum payment.

Could anyone please advise me as to what effect an occupational pension normally has on the basic esa amount and also on any top up transitional protected payment. Also how a lump sum pension payment is treated.

Any information would be appreciated

Last edit: 12 years 3 months ago by Gordon.

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gillyk59
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12 years 3 months ago #95256 by gillyk59

Replied by gillyk59 on topic Re: Pension disregards

I dont believe the lump sum will impact on your esa (cb)but your pension income will decrease your esa by 50p for each £1.00 over £85.00 per week i.e if you receive an occupational pension of £100 per week then £85.00 will be disregarded and 50% of the remaining £15 will be deducted making a deduction of £7.50.

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Aquarius
Topic Author

12 years 3 months ago - 12 years 3 months ago #95263 by Aquarius

Replied by Aquarius on topic Re:Pension disregards

hi lzzy1010

Thanks for replying, thats really good to know.

So does that mean the lump sum payment is regarded as capital rather than income and then disregarded ?

Also is the transitional top up payment not affected in any way
due to change of circumstances ?

Last edit: 12 years 3 months ago by Gordon.

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Gordon
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12 years 3 months ago #95265 by Gordon

Replied by Gordon on topic Re:Pension disregards

Aquarius wrote:

Hi

I have recently been transferred from IB TO ESA(CB) and placed in the support group.

As I will be 60 in a couple of months, I will become entitled to a small occupational pension as well as a lump sum payment.

Could anyone please advise me as to what effect an occupational pension normally has on the basic esa amount and also on any top up transitional protected payment. Also how a lump sum pension payment is treated.

Any information would be appreciated

I can confirm that as you are receiving ESA(CB), then there is an £85/w disregard followed by £1/w deduction for every £2/w in excess of the £85/w.

Any capital (savings) that you have should not effect your payments.

Gordon

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Gordon
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12 years 3 months ago #95266 by Gordon

Replied by Gordon on topic Re:Pension disregards

Aquarius wrote:

hi lzzy1010

Thanks for replying, thats really good to know.

So does that mean the lump sum payment is regarded as capital rather than income and then disregarded ?

Also is the transitional top up payment not affected in any way
due to change of circumstances ?

As far as I am aware any deductions would be made from your ESA(CB) with the Transitional payment, which should continue to be paid.

Gordon

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

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Aquarius
Topic Author

12 years 3 months ago #95294 by Aquarius

Replied by Aquarius on topic Re:Pension disregards

Thanks for that Gordon, thats really good advice.

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