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IR ESA and CB ESA and impact of a company pension

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5 years 19 hours ago #247727 by Meggie
I am trying to help a friend who is currently receiving IR ESA (support group and Severe Disability Premium) and DLA (Higher rate care and lower rate mobility).
She has received a letter from her former employer informing her she is entitled to a pension when she reaches 60 in July, £5200 per year, approx. £100 per month and a lump sum of £30,000.
I want to help her understand the impact the pension will have on her benefits. Although I know her DLA will be unaffected I cannot find any clear information about ESA.
Obviously the lump sum will rule out all means-tested benefits like IR ESA. But am I right in thinking she may be entitled to CB ESA instead? She hasn’t worked/paid NI contributions since she left her job due to illness/MS in the late 1990s. If she is entitled to this, how long would it be paid for? Is money deducted because she has the pension? It is impossible to find clear information anywhere about CB ESA and people with long-term illness disability.
If she spends the lump sum (she wants to use it along with the proceeds from her flat to buy a housing association bungalow) would she go back to IR ESA?
Finally, if she were to defer the pension for a couple of years would the DWP treat her as though she was receiving it. It is a Defined Benefit/final salary type pension. I can find clear information that suggests people can leave Defined Contribution pension pots untouched until they reach Pension Credit age without losing their means-tested benefits but absolutely nothing about final salary pensions.
I hope someone can advise or help.

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4 years 11 months ago - 4 years 11 months ago #247756 by Gordon
Meggie

If she stopped working in 1990 then must have been claiming another benefit prior to claiming ESA (it wasn;t introduced until 1998), was she on Incapacity Benefit or Income Support Due to Incapacity.

If the former then she already has an entitlement to Contribution Based ESA but if the latter or there was a break between her working and claiming ESA then she won't be eligible for ESA(CB).

We will need more information about her ESA claim, when it was made and anything she claimed before this to give a more definitive answer.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 4 years 11 months ago by Gordon.

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