icapacity benefit

After doing a bit of digging have come across this:

I come now to the occupational and other pension payment proposals. The regulations exempt severely disabled people in receipt of the highest rate of care component of disability living allowance from the abatement of incapacity benefit on account of pensions payments. We are also exempting three other forms of payment from the abatement provisions. The first includes individual permanent health insurance arranged by the employee, permanent health insurance payment, for which the employee has contributed more than 50 per cent. of a premium, and health insurance that is intended to cover treatment costs.

We will take account of permanent health insurance only where an employer has arranged it and the contract of employment has ended with that employer. We also recognise that there will be circumstances in which it will not be appropriate for occupational and personal pensions to be taken into account. The regulations therefore provide for occupational and personal pensions not to be taken into account where the pension payments are in connection with the death of a member of a scheme or where an occupational pension scheme is in deficit or has insufficient resources to pay the full pensions. The regulations also provide details of how pension income cases are to be administered.

www.publications.parliament.uk/pa/cm1999...t001116/01116s01.htm

Hi, I think you need face to face advice on this matter from either the CAB or a WRO. If they did not deduct the correct amount(if any was to be deducted) and it is their Error, ie, you had notified them on your forms etc of the amount of pension you were receiving i dont think you will have to pay it back. I think it is something like 50p deduction in the £, for amounts over £85.(weekly).Please get some urgent advice. Best Wishes