esa and company pension

hi, when I turn 50, 7/8/14 I will receive a company pension that has been frozen since 1998, it is a superannuation scheme, I am currently in the esa support group although I am awaiting my reassessment, but I have been waiting since December last year. the option I have been sent is as follows, although I can change it if I take a lower lump sum and higher pension and visa versa, £3833.55 per annum, which works out to about £74 a week plus a lump sum of £11,380,10, this leaves me about £35 a week down presuming I lose my benefits, which I presume I do? although my retirement date is 7/8/14 the letter states I will be paid 26th of each month, so what I would like to know is when I should inform the dwp about my change of circumstances and how this will effect my benefit payments and national insurance contribution credits etc, I also receive dla, I presume this will not be effected by my pension? t5hanks in advance.

I am on contribution based esa, which I thought all those in the support group were? so are you saying I will still receive my esa payments? or will it be the difference between my pension and esa payment? or will I lose it all, I thought the lump sum would mean I would lose my benefits? how much are you allowed in your bank account before you are not entitled to esa? sorry I didn`t really understand your answer fully. thanks

freefee wrote: hi, when I turn 50, 7/8/14 I will receive a company pension that has been frozen since 1998, it is a superannuation scheme, I am currently in the esa support group although I am awaiting my reassessment, but I have been waiting since December last year. the option I have been sent is as follows, although I can change it if I take a lower lump sum and higher pension and visa versa, £3833.55 per annum, which works out to about £74 a week plus a lump sum of £11,380,10, this leaves me about £35 a week down presuming I lose my benefits, which I presume I do? although my retirement date is 7/8/14 the letter states I will be paid 26th of each month, so what I would like to know is when I should inform the dwp about my change of circumstances and how this will effect my benefit payments and national insurance contribution credits etc, I also receive dla, I presume this will not be effected by my pension? t5hanks in advance.

Hi ff,

How any Occupational Pension (OP) will affect your ESA payments is dependent on whether your ESA payments are Income Related (IR) ESA, or Contribution Based (CB) ESA.

This is irrespective of which "group" you may be in. (WRAG or SG)

For CB ESA, any amount of lump sum payment would have no affect on your ESA payments.

With respect to the weekly OP payments and CB ESA there is an £85/Week disregard rule.

In that, up to £85/Week will be disregarded. Any amount in excess of the £85/Week will be deducted at a rate of 50 pence in the pound from your weekly ESA payments.

e.g. OP = £105/Week gives and excess of £20/Week over the £85 disregard.

50% of £20 = £10. Therefore £10 would be deducted from your weekly CB ESA payments.

For IR ESA all of your OP would be classed as income. Therefore it would be deducted £ for £ from your weekly IR ESA payments.

Regarding IR ESA and a lump sum which would be classed as "capital" you are allowed up to £6000 in capital, assets or saving, without it affecting entitlement to IR ESA.

Between £6,000 and £16,000 a deduction of £1/Week/£250 will be made from your IR ESA.

See example below :

Asset rule for ESA(IR)

If you have capital, assets or savings over £16,000, you would not be entitled to any IR ESA.

This would also affect Housing Benefit payments if you were in receipt of them.

When you decide which option to take, you should receive it all in writing.

That would be the time to inform the DWP in writing, and provide copies of the "Payment Offer".

You should do this whether you are in receipt of CB ESA, IR ESA or both.

Sending Documents to the DWP or ATOS

bro58

CESA claimants in the Support Group are not means tested after 365 days as they are in the WRAG. However, it is still perfectly possible to be on IRESA in the Support Group - for instance, if the claimant did not have the NI contributions necessary in order to claim CESA in the first place.

so if I understand correctly, my pension of £74 a week and my lump sum will not effect my esa payments as long as my benefits remain contribution based? sorry for being a bit thick.

bro58 wrote:

freefee wrote: hi, when I turn 50, 7/8/14 I will receive a company pension that has been frozen since 1998, it is a superannuation scheme, I am currently in the esa support group although I am awaiting my reassessment, but I have been waiting since December last year. the option I have been sent is as follows, although I can change it if I take a lower lump sum and higher pension and visa versa, £3833.55 per annum, which works out to about £74 a week plus a lump sum of £11,380,10, this leaves me about £35 a week down presuming I lose my benefits, which I presume I do? although my retirement date is 7/8/14 the letter states I will be paid 26th of each month, so what I would like to know is when I should inform the dwp about my change of circumstances and how this will effect my benefit payments and national insurance contribution credits etc, I also receive dla, I presume this will not be effected by my pension? t5hanks in advance.

Hi ff,

How any Occupational Pension (OP) will affect your ESA payments is dependent on whether your ESA payments are Income Related (IR) ESA, or Contribution Based (CB) ESA.

This is irrespective of which "group" you may be in. (WRAG or SG)

For CB ESA, any amount of lump sum payment would have no affect on your ESA payments.

With respect to the weekly OP payments and CB ESA there is an £85/Week disregard rule.

In that, up to £85/Week will be disregarded. Any amount in excess of the £85/Week will be deducted at a rate of 50 pence in the pound from your weekly ESA payments.

e.g. OP = £105/Week gives and excess of £20/Week over the £85 disregard.

50% of £20 = £10. Therefore £10 would be deducted from your weekly CB ESA payments.

For IR ESA all of your OP would be classed as income. Therefore it would be deducted £ for £ from your weekly IR ESA payments.

Regarding IR ESA and a lump sum which would be classed as "capital" you are allowed up to £6000 in capital, assets or saving, without it affecting entitlement to IR ESA.

Between £6,000 and £16,000 a deduction of £1/Week/£250 will be made from your IR ESA.

See example below :

Asset rule for ESA(IR)

If you have capital, assets or savings over £16,000, you would not be entitled to any IR ESA.

This would also affect Housing Benefit payments if you were in receipt of them.

When you decide which option to take, you should receive it all in writing.

That would be the time to inform the DWP in writing, and provide copies of the "Payment Offer".

You should do this whether you are in receipt of CB ESA, IR ESA or both.

Sending Documents to the DWP or ATOS

bro58

Hi ff,

So basically you need to find out whether you are in receipt of CB ESA only, IR ESA only or CB ESA with IR ESA top up.

As I have said, this is not dependent on which group you are in.

It is dependent on your NI Contribution history.

If you were previously in receipt of IB only, and were transferred over to ESA it would be CB ESA.

What will I be transferred to?

However, one could have been in receipt of IB with an Income Support (IS) top up.

In that case you would be paid CB ESA with IR ESA top up.

Further, as you are in The SG, even if you were entitled to CB ESA, you may be getting paid The Enhanced Disability Premium (EDP) as an IR ESA top up.

ESA Premiums

bro58