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Occupational Pensions and Contribution Based ESA 2 years 3 months ago #208523

Occupational Pensions and Contribution Based ESA after Migration from IB

There seems to be a lot of people who have received a letter (as I have) from DWP regarding their contribution based(CB) ESA, requesting how much their occupational/personal pension is increasing. This is despite DWP not having been informed of the pension by the claimant, AND despite the claimant believing that the pension is disregarded as far as (CB)ESA is concerned.

I have tried researching and have found a post from 2013, which would appear to provide a concise answer for people who have concerns about whether they will have to lose some of their (CB)ESA.
*NB This refers to (CB) ESA who migrated from Incapacity Benefit (IB)*

I believe (but need confirmation from Gordon et al @BenefitsandWork) that the posting confirms two important aspects:
1) If IB was claimed before April 2001 then the pension will be disregarded on ESA. A claimant should receive the same ESA as their current rate of IB, provided they pass the medical of course. (point 2.3 below)
2) If pension was disregarded when claimant was receiving IB, due to being in receipt of high level care DLA, then it will continue to be disregarded after migration to (CB)ESA. (point 2.1 below)
I believe these are 2 critical points that need to be highlighted to the numerous claimants who seem to be receiving letters from DWP requesting irrelevant pension information. These letters are unsurprisingly causing a lot of unnecessary worry for some very vulnerable claimants.

Please read below for posting from 2013:

www.facebook.com/FightBack4Justice/posts/10153274310535565

05 September 2013

Occupational pensions and Contribution Based ESA:
We are being asked quite a lot about Occupational Pensions and ESA (Support Group, contribution based) Following migration from Incapacity Benefit to ESA.

Basically those on Incapacity Benefit and Severe Disability Allowance, who claimed IB 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 new ESA claimants who have 50 per cent of any occupational pension over £85 a week deducted from their entitlement.

Pensions prior to conversion
Certain pension payments or PPF periodic payments, do not fall to be deducted from ESA(Cont). In addition any pension payment or PPF periodic payment is disregarded where
1. the claimant was entitled to IB immediately before conversion to ESA and
2. IB was not reduced by a pension or PPF payment because
2.1 the claimant was entitled to DLA care component at the highest rate3 or
2.2 the claimant qualified for IB under the provisions for those incapacitated in youth because of previous entitlement to SDA4 or
2.3 the claimant was entitled to IB before 6.4.01 on any day
which began before and continues after that date.

New ESA Claimants
If you receive contribution based Employment and Support Allowance and have a gross pension income of more than £85 a week, the amount of benefit payable will be reduced by half of the excess.
If you receive income-related Employment and Support Allowance, any pension income you have will be taken into account, regardless of the amount.
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Occupational Pensions and Contribution Based ESA 2 years 3 months ago #208546

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John

From the ESA perspective the only test is whether the pension was disregarded under IB. If it and the ESA claim has been continuous since conversion then the pension should be disregarded under ESA.

Gordon

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

Occupational Pensions and Contribution Based ESA 2 years 3 months ago #208575

Hi John,

You're quite right, it seems that this is a common event this year.

The Pension disregard rule also applies to me as I was in receipt of an occupational pension prior to April 2001. Yesterday I received my first ever letter asking for details of any pending increase so ESA could be adjusted.
I was initially quite anxious but after a phone call to DWP have been informed that the letter was computer generated and sent out in error. They confirmed my pension was not taken into account and just made a note on my records to show that I had been in contact.

I wrote a reply to a previously post by Bob 2016 started on the forum about 4 days ago if it might help you.

Best wishes.

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Occupational Pensions and Contribution Based ESA 2 years 3 months ago #209012

Same thing just happened to me with pension enquiry and ESA but also received a form ESA3 to see if I was entitled to IR ESA. Just been told that I am not entitled to IR ESA because of my pensions. They were discounted for CB ESA under the transitional rules because of IB and DLA. Just wondered if DWP’s decision is right? Also what about any severe disability premium that I might have received?

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Occupational Pensions and Contribution Based ESA 2 years 3 months ago #209025

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villagegirl wrote: Same thing just happened to me with pension enquiry and ESA but also received a form ESA3 to see if I was entitled to IR ESA. Just been told that I am not entitled to IR ESA because of my pensions. They were discounted for CB ESA under the transitional rules because of IB and DLA. Just wondered if DWP’s decision is right? Also what about any severe disability premium that I might have received?


The disregard only applies to Contribution Based ESA. If you are not entitled to Income Related ESA then you can't be paid any Premiums.

Were the DWP aware that you met the other criteria for the Severe Disability Premium as this increases the amount of ESA(IR) that they calculate? If your pension is more than about £80 per week then it would wipe out any money you might receive from the Premiums as it will be deducted £ for £ from any ESA(IR).

Gordon
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Last edit: by Gordon.

Occupational Pensions and Contribution Based ESA 2 years 3 months ago #209036

Hi I receive a small NHS PENSION and every year for the past 2/3 I've had a letter from DWP stating they understand I'm getting a rise. I was never on IB just ESA from early 2015.

I'm on cb ESA in the support group and the first time rang them but it's a regular yearly thing, and I sign a form to give them permission to check.

This year hopefully it will be a small NHS pension rise as I've seen on TV.
Best wishes
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